ESG and the Davenport Asset Management Research Process
September 2021
Read on as Chris Pearson, SVP and Investment Policy Committee Member, breaks down the ESG movement and explains why we believe some ESG factors can be used to reduce risk in Davenport Asset Management strategies.
Highlighting Small and Mid-Cap
August 2021
The Davenport Small Cap Focus Fund (DSCPX) and the Davenport Equity Opportunities Fund (DEOPX) surpass benchmarks on a YTD basis as the “risk on” speculative trade fades and quality matters. Read on for our highlight on our small and mid-cap strategies.
July 2021 Market Update
Planned Giving Techniques
May 2021
“The Current State of Philanthropy” is a three part series by guest speaker Michele A. W. McKinnon of McGuireWoods.
In part three of the series, “Planned Giving Techniques”, Michele discusses some attractive strategies for giving in the current environment.
WATCH THE VIDEO
Recent Tax Law Changes Affecting Charitable Giving
May 2021
“The Current State of Philanthropy” is a three part series by guest speaker Michele A. W. McKinnon of McGuireWoods.
In part two of the series, “Recent Tax Law Changes Affecting Charitable Giving”, Michele discusses recent changes to tax law and the consequences for charitable giving.
WATCH THE VIDEO
Charitable Giving in the US & Donor Motivation
May 2021
“The Current State of Philanthropy” is a three part series by guest speaker Michele A. W. McKinnon of McGuireWoods.
In part one of the series, “Charitable Giving in the US & Donor Motivation”, Michele dives into the current state of giving in the United States and what motivates donors to give.
WATCH THE VIDEO
Nonprofit Governance: Getting to Great
April 2021
As a follow up to a webinar in January we hosted titled “Thriving Nonprofit Boards”, Katherine Whitney of Warren Whitney put together a related report titled “Nonprofit Governance: Getting to Great”. This piece has tips on improving your nonprofit board and includes a self-evaluation checklist.
Media Replay with John Diehl of Hartford Funds
February 17, 2021
As a part of Davenport Asset Management’s Virtual Investor Summit Series, John Diehl of Hartford Funds recently spoke over Zoom to discuss “How to Help Clients Make Rational Decisions When it Feels Like the World is Falling Apart”.
Quarterly Updates
2021 Q2 Update
Equity markets remained strong in the second quarter with the S&P 500® Index and the Russell 2000® Index gaining 8.6% and 4.3%, respectively. Year-to-date, the S&P and Russell finished the quarter up 15.3% and 17.5%, respectively. Most Americans are vaccinated, the economic recovery from COVID has been in full swing and corporate earnings have generally exceeded expectations. More cyclical and value-oriented sectors such as energy and financials have been very strong; however, we’ve seen concurrent strength in durable growth sectors such as technology and communication services. It seems investors have migrated from stay-at-home plays to reopening plays to now buying everything.
2021 Q1 Update
Equity markets continued their remarkable run in the first quarter as risk taking was in full swing. The S&P 500® Index and Russell 2000® Index gained 6.2% and 12.7%, respectively. It’s hard to fathom how far we’ve come since early last year when COVID fears gripped the globe, businesses were shutting down and markets were in turmoil. Today, the narrative is markedly different as we are making significant vaccination progress, economies are re-opening and equity markets are near all-time highs.
2020 Q4 Update
Equity markets capped off a bizarre and turbulent year with a stunning fourth quarter rally. The S&P 500® Index gained 12.2% while the Russell 2000® Index was up an astonishing 31.4%. Election fears quickly became a distant memory in November and gave way to a buying stampede that went into high gear alongside the unveiling of a COVID vaccine. For the year, the S&P and Russell finished up 18.4% and 20.0%, respectively. Suffice it to say, such remarkable gains seemed unthinkable back in March when virus concerns had the S&P down over 30% for the year.
2020 Q3 Update
Equity markets continued their strong positive performance off the March lows in the third quarter. Despite a modest selloff in September, the S&P 500® Index gained 8.9% in the third quarter. Combined with Q2’s 20.5% gain, it was the best two-quarter stretch for large cap stocks since 2009, when markets were recovering from the financial crisis. Small caps’ gains were less robust, with a 4.9% rise in the Russell 2000® Index during Q3. Year-to-date, the S&P 500 is up 5.6% through the end of the third quarter, and the Russell 2000 is down 8.7%.
2020 Q2 Update
Equity markets find themselves in a much different place than a quarter ago. When we penned our first quarter update, coronavirus fears gripped financial markets around the world and stocks had retreated sharply from their highs. Since then, we’ve witnessed an astounding recovery for equities. In the second quarter, the S&P 500® gained 20.5% (its best quarter since 1998) while the Russell 2000® advanced 25.4%. Year-to-date, the S&P finished the period down 3.1%, a manageable decline that flies in the face of the dire predictions from just a few months ago. The Russell finished year-to-date down 13.0%, clearly a meaningful decline but much better than negative 30.6% at the end of March.
2020 Q1 Update
These are frightening and unusual times. Economies, financial markets, and people around the world are gripped with coronavirus fears. We’ve gone from a buoyant economy that was supported by a very healthy consumer to a full-blown crisis. The S&P 500® Index declined 19.6% in the first quarter and experienced the fastest move into bear market territory in history. The Russell 2000® Index declined 30.6% and the Dow Jones Industrial Average had its worst first quarter ever. The market’s swoon has been nauseating and very few stocks have been defensive.
2019 Q4 Update
2019 was an extraordinary year for equity investors. The S&P 500® Index surged a whopping 31.5% while the Russell 2000® Index advanced 30.6%. For the fourth quarter, the S&P 500 and Russell 2000 gained 9.1% and 7.1%, respectively. Such impressive performance represented a sharp turnaround from year-end 2018, when markets retreated alongside fears of tighter monetary policy and slowing growth.
2019 Q3 Update
Equity investors experienced a wild ride in the third quarter. After a solid start in July, we witnessed a sharp swoon in August as trade tensions again took center stage. The S&P 500® Index posted declines of nearly 3% on August 5th and August 14th as volatility surged. Fortunately, the damage was mitigated by a late August rally followed by a decent September. In the end, the S&P 500 Index finished the quarter up 1.7% while the Russell 2000® Index was down 2.4%. Year-to-date, the S&P 500 Index and Russell 2000 Index finished the period up 20.1% and 14.2%, respectively.
2019 Q2 Update
Stocks continued their hot streak in the second quarter. The S&P 500 Index advanced 4.3% while the Russell 2000 Index gained 2.1%. Year-to-date, the S&P 500 Index and the Russell 2000 Index have posted total returns of 18.5% and 17.0%, respectively. Interestingly, the S&P 500 Index had its best first half of a year since 1997.
2019 Q1 Update
Equities surged higher to start 2019. The S&P 500 Index gained 13.7% while the Russell 2000 Index was up 14.6%. Of note, this was the best quarter for the S&P 500 Index since 2009 and the best first quarter since 1998. Clearly, this advance represented a dramatic turn of events from Q4 2018, when stocks declined and the S&P 500 Index experienced its worst December since 1931.
2018 Q4 Update
2018 brought investors a number of twists and turns. In the end, the S&P 500 Index finished the year down 4.4%. This was the first down year for the S&P since the sharp swoon we experienced in 2008. Losses were concentrated in the fourth quarter, when the Index dropped 13.5% and experienced its worst December since 1931. Meanwhile, the Russell 2000 Index declined 20.2% in the fourth quarter and ended the year down 11.0% as a “risk off” mindset disproportionately impacted shares of smaller companies.
2018 Q3 Update
Equity markets enjoyed surprisingly strong returns in the third quarter. The S&P 500 Index gained 7.7% and posted its best quarter in nearly five years. Year-to-date the S&P 500 Index finished the quarter up 10.6%. On another bullish note, the Nasdaq Composite Index gained 7.4% and was up for the ninth consecutive quarter.