Fund Overview
Davis Opportunity Fund
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Overview
Investment Strategy
Investment Results
Fund Attributes
Fund Factsheet (pdf)
Prospectus (pdf)

Overview

The signature Davis investment discipline—seeking to purchase durable, well-managed businesses at value prices and holding them for the long term—is applied to companies with various market capitalizations.

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Investment Strategy

As of 3/31/10:
Large Cap 68.4%
Mid Cap 20.1%
Small Cap 11.5%

The Davis Opportunity Fund is team-managed by the same experienced group of investment professionals who conduct research for the Davis New York Venture Fund. Members of the Davis Opportunity Fund management team select ideas to produce a portfolio that is diversified both by sector and company size.

The investment management team focuses on identifying small-, mid- and large-size companies with the characteristics we believe foster the long-term creation of value in businesses.

The characteristics we look for include first-class management, management ownership, high returns on capital, low cost structure, dominant or growing market share, proven track record, strong balance sheet, products and services that do not become obsolete, successful international operations, and innovative users of technology.

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Investment Results

The Davis Opportunity Fund outperformed The Russell 3000 index® in nine of the last eleven calendar years since Davis began managing the fund in 1999.*




Davis Opportunity Fund
Class A, Annualized Total Returns
as of March 31, 2010 		1
Year 		5
Years 		10
Years
with a maximum 4.75% sales charge 48.61% -0.18% 2.44%



How a Hypothetical $10,000 investment Has Grown Since Davis Began Management of the Fund (1/1/99)

The performance presented represents past performance and is not a guarantee of future results. Total return assumes reinvestment of dividends and capital gain distributions. Investment return and principal value will vary so that, when redeemed, an investor's shares may be worth more or less than their original cost. The total annual operating expense ratio for Class A shares as of the most recent prospectus was 1.15%. The total annual operating expense ratio may vary in future years. Returns and expenses for other classes of shares will vary. Current performance may be higher or lower than the performance data quoted. Investments in initial public offerings (IPOs) had a favorable impact on performance in 1999 and 2000 when the IPO market was very active. No assurance can be given that the Fund will continue to invest in IPOs to the same extent in the future or that such investments will be profitable. For most recent month-end performance, click here or by call 1-800-279-0279.

* Davis began managing the Fund on January 1, 1999.

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Fund Attributes

Our firm's consistent application of the patient, rigorous, research-intensive Davis investment discipline, combined with our strong belief in the principles of shareholder stewardship, has resulted in a number of unique attributes:

  • Investment Results
    Davis Opportunity Fund outperformed the Russell 3000 Index nine of last eleven calendar years 1
  • Substantial Co-investment
    The Davis family, Davis Advisors, employees and directors have over $2 billion of their own money invested side by side with fellow shareholders in the various mutual funds our firm manages. This creates one of the greatest degrees of shareholder alignment in the industry. 2

    In addition to the portfolio managers' significant co-investment in the Fund, the team's compensation is tied to long-term investment results. These facts help to ensure an appropriate alignment of interests with clients.
  • A Culture of Shareholder Stewardship
    At Davis, we put our clients' goals first. Morningstar has recognized this commitment by awarding the Fund its highest overall Stewardship Grade of "A", a level achieved by less than 10% of the funds Morningstar grades. 2
  • Lower Than Average Expense Ratio 3
    Davis Opportunity Fund A: 1.15%, Lipper Category Average: 1.46%
  • Lower Than Average Turnover Rate 4
    Davis Opportunity Fund A: 24%, Lipper Category Average: 85%

    The highly-patient nature of the Davis investment discipline is reflected in our lower than average turnover ratio.


The performance presented represents past performance and is not a guarantee of future results. Total return assumes reinvestment of dividends and capital gain distributions. Investment return and principal value will vary so that, when redeemed, an investor's shares may be worth more or less than their original cost. See endnotes for additional disclosure.

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1 As of December 31, 2009. Class A shares, not including a sales charge. Past performance is not a guarantee of future results.
2 As of December 31, 2009.
3 Fund expense ratio is as of most recent prospectus. Lipper Category Average is as of most recent quarter end.
4 Fund turnover is as of most recent audited financial statement. Lipper Category Average is as of most recent quarter end. Figures reported are net of reimbursements and may vary in future periods. Peer/category data is compiled using Lipper. As of March 31, 2010 the Davis Opportunity Fund had been categorized by Lipper as Multi-Cap Core.


This material must be accompanied or preceded by a current Davis Series, Inc., Prospectus. Carefully consider the fund's investment objectives, risks, charges and expenses before investing or sending money. The prospectus contains this and other information and can be obtained by clicking here or calling 1 (800) 279-0279. Read the prospectus carefully before you invest or send money.

Davis Opportunity Fund's investment objective is long-term growth of capital. There can be no assurance that the Fund will achieve its objective. Some important risks of an investment in the Fund are: market risk: the market value of shares of common stock can change rapidly and unpredictably; company risk: the market value of a common stock varies with the success or failure of the company issuing the stock; small- and medium-capitalization risk: companies share price tend to fluctuate more often as they tend to have limited product lines, markets and financial resources, and their securities may trade less frequently and in more limited volume than those of larger companies; foreign country risk: companies operating, incorporated, or principally traded in foreign countries may have more fluctuation as foreign economies may not be as strong or diversified, foreign political systems may not be as stable, and foreign financial reporting standards may not be as rigorous as they are in the United States. As of March 31, 2010, Davis Opportunity Fund had approximately 19.3% of assets invested in foreign companies. See the prospectus for a complete listing of the principal risks.

Investments in initial public offerings (IPOs) had a favorable impact on Davis Opportunity Fund's performance in 1999 and 2000. This was a time when the IPO market was very active. No assurance can be given that Davis Opportunity Fund will continue to invest in IPOs to the same extent in the future or that such investments would be profitable.

Over the last five years, the high and low turnover ratio for Davis Opportunity Fund was 40% and 24%, respectively.

Davis Advisors began active daily management of the Fund on January 1, 1999. From May 1, 1984, until December 31, 1998, Davis Advisors had a subadvisor that handled the active daily management of the fund.

Small-cap companies have market capitalizations less than $3 billion. Mid-cap companies have market capitalizations from $3 billion to $10 billion. Large-cap companies have market capitalizations more than $10 billion. Under normal circumstances, Davis Opportunity Fund invests the majority of its assets in equity securities issued by companies with market capitalizations of less than $20 billion.

Morningstar assigns a stewardship grade to funds it covers. The overall stewardship grade is the sum of the following five components that are graded on a scale of A through F: Regulatory Issues, Board Quality, Manager Incentives, Fees, and Corporate Culture. The overall grade will range from an A to an F. Morningstar utilizes a fund's public filings, responses to a survey sent out by Morningstar to the fund company and the expertise of the Morningstar analysts to determine a fund grade. The grades are subject to change and are as of December 31, 2009. The methodology for the Morningstar Stewardship grade is completely different from the performance-based Morningstar star rating and has no impact on the star rating.

The Russell 3000 Index measures the performance of the 3,000 largest companies incorporated in the United States and its territories and listed on the NYSE, AMEX, or NASDAQ. The companies are ranked by decreased total market capitalizations. Investments cannot be made directly in an index.

Broker-dealers and other financial intermediaries may charge Davis Advisors substantial fees for selling its products and providing continuing support to clients and shareholders. For example, broker-dealers and other financial intermediaries may charge: sales commissions; distribution and service fees; and record-keeping fees. In addition, payments or reimbursements may be requested for: marketing support concerning Davis Advisors’ products; placement on a list of offered products; access to sales meetings, sales representatives and management representatives; and participation in conferences or seminars, sales or training programs for invited registered representatives and other employees, client and investor events and other dealer-sponsored events. Financial advisors should not consider Davis Advisors’ payment(s) to a financial intermediary as a basis for recommending Davis Advisors. 

Shares of the Davis Funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including possible loss of the principal amount invested.

Davis Distributors, LLC, 2949 East Elvira Road, Suite 101, Tucson, AZ 85756, 800-279-0279.

 






























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