Clipper Fund

    Overview

    Investment Strategy

    Clipper Fund is a no-load equity mutual fund advised by Davis Selected Advisers, L.P.

    The goal of the Clipper Fund is to provide investors access to attractive investment opportunities among large cap, durable, well-managed businesses. We seek to purchase these businesses at value prices and hold them for the long term. This approach makes the Clipper Fund an ideal foundation for an investor’s portfolio.

    Click here to learn more about the Davis Investment Discipline.

    Why Invest in the Clipper Fund

    Sixty Years of Experience

    Davis has compounded wealth for investors over six decades and three generations.

    Aligned with Shareholders

    With more than $2 billion invested side by side with fellow shareholders, we experience the same risks and reap the same rewards.1

    Lower Than Average Expense Ratio3

    Clipper Fund, 0.71%; Lipper Category Average, 0.88%.

    Lower Than Average Turnover Rate3

    Clipper Fund, 9%; Lipper Category Average, 43%.


    Selective Attractive Growth Undervalued

    Clipper invests in only a select group of well-researched companies

    Clipper portfolio companies have offered attractive growth

    Clipper portfolio companies are 41% less expensive than the index

    Holdings**

    5-Year EPS Growth**

    P/E (Forward)**
    503
    28
    Clipper
    S&P500
    14.5%
    10.2%
    Clipper
    S&P500
    10.5x
    17.8x
    Clipper
    S&P500

       “The companies of Clipper Fund have grown faster than the companies in the index, yet are 41% less expensive.

    In fact, this gap between price and value is among the widest we have ever seen.

    We believe this sets the stage for attractive returns in the years ahead.”

    - Portfolio Manager Chris Davis

    Performance as of 12/31/2022

    Total Returns
    as of December 31, 2022    		 YTD* 1
    Year    		 3
    Years    		 5
    Years    		 10
    Years
    Annual -18.75% -18.75% 1.71% 3.50% 9.54%
    Cumulative -18.75% -18.75% 5.23% 18.80% 148.83%

    * Returns for periods less than one year are not annualized.

    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 as of the most recent prospectus was 0.71%. The total annual operating expense ratio may vary in future years. Current performance may be higher or lower than the performance quoted. For most recent month-end performance, click here or call 800.432.2504. The Fund received favorable class action settlements from companies which it no longer owns. These settlements had a material impact on the investment performance of the Fund in 2009. This was a one-time event that is unlikely to be repeated. Clipper Fund was managed from inception, February 29, 1984, until December 31, 2005 by another Adviser. Davis Selected Advisers, L.P. took over management of the Fund on January 1, 2006.

    Portfolio Characteristics as of 12/31/22

    Portfolio Composition

    Clipper Fund S&P 500® Index
    Forecast P/E Ratio 10.5 17.8
    P/B Ratio 2.0 4.0
    Weighted Average Market Cap ($bn) 186.8 393.6
    Beta (3 year) 1.0 1.0
    Standard Deviation (5 year) 20.9 18.7
    Number of Holdings 28 503

    Top 10 Holdings

    Berkshire Hathaway 11.7%
    Wells Fargo 8.4%
    Alphabet 8.3%
    Markel 6.5%
    Capital One Financial 6.0%
    Bank of New York Mellon 5.8%
    Meta Platforms 5.5%
    Cigna 4.7%
    U.S. Bancorp 4.7%
    Amazon.com 3.9%

    Click here for Month-end Holdings
    Click here for Quarter-end Holdings


    Turnover and Expenses

    Clipper
    Fund    		 Lipper Category Average
    Turnover Rate3 9% 43%
    Expense Ratio3 0.71% 0.88%

    Top 5 Industries

    Diversified Financials 23.4%
    Banks 22.5%
    Media & Entertainment 13.8%
    Health Care 10.7%
    Insurance 10.7%

    This material is authorized for use by existing shareholders. A current Clipper Fund prospectus must accompany or precede this material if it is distributed to prospective shareholders. You should carefully consider the Fund’s investment objective, risks, fees, and expenses before investing. Read the prospectus carefully before you invest or send money.


    1As of December 31, 2022.

    3See Expense ratio/Turnover link below.

    ** The Attractive Growth and Undervalued reference relates to underlying characteristics of the portfolio holdings. There is no guarantee that the Fund performance will be positive as equity markets are volatile and an investor may lose money. Past performance is not a guarantee of future returns. Performance may vary.  Five-Year EPS Growth Rate is the average annualized earning per share growth for a company over the past five years. The values for the portfolio and index are the weighted average of the five-year EPS Growth Rates of the stocks in the portfolio or index. Forward Price/Earnings (Forward P/E) Ratio is a stock’s current price divided by the company’s forecasted earnings for the following 12 months. The values for the portfolio and index are the weighted average of the P/E ratios of the stocks in the portfolio or index.

    (1) Read here for objective/risk disclosures

    (3) Read here for Expense ratio/Turnover disclosures

    (4) Read here for Index definition

    (5) Read here for additional disclosures

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