The chart below summarizes results through December 31, 2013 for Davis New York Venture Fund. As the Fund’s managers, my colleagues and I at Davis Advisors have two objectives: to earn a satisfactory absolute investment return and to generate relative results in excess of the S&P 500® Index. In our view, the data in the chart below presents a mixed picture. Over virtually all periods, the Fund’s absolute returns have been satisfactory. In particular, a one year return of 35% and five year compounded annual return of 16% should be considered extraordinary.1 On a relative basis, we fell short of our goal in a number of these periods. Although both goals are important, if forced to choose between strong absolute returns in which we trailed the market or negative absolute returns in which we beat the market, we would far prefer the former. When people choose to invest rather than spend their hard earned money, their objective is generally to be able to afford something more in the future. For our shareholders, this might mean a child’s or grandchild’s education, a more comfortable retirement, a new house, or simply the peace of mind that comes from being prepared for life’s unexpected expenses. Thus, as stewards of shareholders’ savings, we always remember the wisdom of the old saying, “you can’t eat relative returns.” However, we aim to achieve both goals and unquestionably have ground to make up on a relative basis. The year 2013 was a good start but we have a ways to go.
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 0.88%. 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 quoted. For most recent month-end performance, click here or call 800-279-0279. Continue Reading »