Davis Selected Advisers Q4 2025 13F Holdings and Activity Report

I. Institutional Overview

Scale analysis reveals a firm that is comfortably large but strategically concentrated. While 108 stocks might suggest broad diversification, the portfolio is actually quite top-heavy. The top 10 holdings alone represent a massive percentage of the total AUM, indicating that Chris Davis is not afraid to place "big bets" when his criteria for value and quality are met. The firm’s scale has remained relatively stable, suggesting a disciplined approach to capacity management—avoiding the "asset gathering" trap that often dilutes the performance of successful value managers.

The firm’s psychological state this quarter appears to be one of active refinement . While the core remains stable, the significant additions in sectors like Energy (Coterra Energy) and Consumer Staples (JBS, Tyson Foods) indicate a tactical pivot toward "tangible assets" and "essential cash flows." This move suggests a cautious outlook on broader market valuations, leading the firm to seek refuge in companies with strong balance sheets and the ability to generate cash in various economic environments. In summary, Davis Selected Advisers enters 2026 as a bastion of disciplined, long-term capital allocation, characterized by a "Quality-at-a-Reasonable-Price" (QARP) methodology that prioritizes business fundamentals over market sentiment.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

II. Sector Allocation Analysis

The most striking feature of the Davis portfolio is the 34.23% allocation to Financials . This is more than double the weight of the next largest sector. When combined with Healthcare (15.56%) and Communication Services (13.79%), the top three sectors account for 63.58% of the total portfolio. This high level of concentration indicates a "specialist" approach. Chris Davis clearly believes that the firm’s edge lies in evaluating complex financial institutions and high-moat service providers. This is not a "closet index" fund; it is a high-conviction mandate that deviates significantly from the S&P 500’s sector weights.

The dominance of Financials (34.23%) is the cornerstone of the Davis strategy. This allocation includes traditional banks (Capital One, U.S. Bancorp, Wells Fargo), insurance giants (Markel, Chubb), and investment vehicles (Berkshire Hathaway). This layout suggests a strong belief in the resilience of the American financial system and a bet on a "higher-for-longer" interest rate environment, which generally benefits the net interest margins of well-capitalized banks. Furthermore, the inclusion of "compounding machines" like Markel and Berkshire indicates a preference for management teams that are expert at capital allocation.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

III. Top 10 Holdings Deep Dive

The remainder of the top 10 shows a deliberate mix of sectors. AMAT (Applied Materials) saw a sharp 24.36% reduction , likely a tactical profit-taking move after a massive run in semiconductor equipment stocks. Conversely, CTRA (Coterra Energy) surged into the top 10 with a 63.64% increase in shares, representing a major "Offensive" move into the energy sector. This suggests a rotation from "high-multiple tech" (AMAT) to "low-multiple energy" (CTRA).

The Top 10 holdings reveal a "Barbell Strategy." On one side, you have high-growth, high-tech platforms (Meta, Alphabet). On the other, you have "Old Economy" cash cows (Capital One, U.S. Bancorp, Coterra Energy). This construction allows the portfolio to capture upside from technological innovation while maintaining a solid floor of tangible assets and financial earnings. The average holding age of these top positions is exceptionally high, confirming that Chris Davis is a "business owner" first and a "stock trader" second.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

IV. Major Buys/Additions

The additions this quarter are heavily clustered in Energy, Consumer Staples (Food), and Financials . This is a "Real Economy" tilt. While the rest of the market may be chasing AI dreams, Davis is buying natural gas, beef, chicken, and regional banking. This reveals a belief that the "tangible" parts of the economy are currently offering better risk-adjusted returns than the "intangible" tech sectors. It is a rotation from "Growth" to "Value/Staples."

Where did the money come from? The $347 million recouped from trimming Applied Materials (AMAT) almost perfectly offsets the $329 million put into Coterra Energy (CTRA) . This is a textbook "Strategy Rotation." Davis is taking profits from a high-flying, cyclical technology stock (AMAT) and recycling that capital into a cyclical energy stock (CTRA) that is earlier in its recovery cycle or trading at a more attractive valuation. This "inventory reallocation" keeps the portfolio's overall risk profile balanced while shifting the "offensive" focus to a new sector.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

V. Major Sells and Exits

The overall quality of the exit operations this quarter is high. The firm is selling "high" (AMAT) and exiting "stagnant" (HUM). This "portfolio cleaning" is essential for maintaining a high-conviction strategy. The reduction in NetEase (NTES) also suggests a tactical trim of international/tech exposure in favor of domestic, tangible assets.

The reduction in Berkshire Hathaway (BRK.A) and JPMorgan (JPM) , though small, is noteworthy. These are the "gold standards" of the financial world. Trimming them, even slightly, suggests that Davis believes they are "fairly valued" and that better "alpha" can be found in more specific bets like U.S. Bancorp or Capital One. The risk signal here is one of "Market Maturity" —Davis sees the broad leaders as having limited upside from here.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

VI. Investment Insights and Risk Warnings

The most unique insight from this report is the firm's sudden and massive interest in the "Protein" industry. By committing over $340 million to JBS and Tyson, Davis is making a contrarian bet that the "commodity cycle" for meat is turning. This, combined with the massive bet on Coterra Energy, creates a "Power and Protein" barbell that is almost entirely decoupled from the "Software and AI" narrative of the Nasdaq.

Reference Value for Investors : For retail investors, the Davis report offers a sobering reminder of the importance of valuation discipline . The firm is not selling Meta or Alphabet—it still believes in "Modern Quality"—but it is refusing to pay "any price" for growth. The rotation into Coterra and Tyson suggests that "unloved" sectors with strong balance sheets may be the next frontier for outperformance. However, investors should note that Davis's 10-year time horizon allows him to endure the "cyclical pain" that often comes with these types of value bets.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

Sources and limitations

This report uses public U.S. Securities and Exchange Commission Form 13F disclosures and structured data maintained by 13F Hub. A 13F filing is a quarter-end snapshot of reportable long positions, is normally published with a delay, and does not disclose every short position, cash balance, bond, derivative, or non-U.S. asset.

Narrative content is prepared from the same-period SEC disclosure and 13F Hub structured data, then checked before publication. This material is for research and education, not personalized investment advice.