A. Firm Information
Davis Investment Partners LLC (“Davis Investment Partners” or the “Advisor”) is a registered investment advisor
with the U.S. Securities and Exchange Commission (“SEC”). The Advisor is organized as a Limited Liability
Company (“LLC”) under the laws of the State of North Carolina. Davis Investment Partners was founded in
January 2022. Davis Investment Partners is owned and operated by James L. Davis (Partner) and Victor J.
Davis. (Partner and Chief Compliance Officer).
This Disclosure Brochure provides information regarding the qualifications, business practices, and the advisory
services provided by Davis Investment Partners.
B. Advisory Services Offered
Davis Investment Partners offers advisory services to individuals, high net worth individuals, families, trusts,
estates, and small businesses (each referred to as a “Client”).
The Advisor serves as a fiduciary to Clients, as defined under the applicable laws and regulations. As a fiduciary,
the Advisor upholds a duty of loyalty, fairness, and good faith towards each Client and seeks to mitigate conflicts
of interest. Davis Investment Partners’ fiduciary commitment is further described in the Advisor’s Code of Ethics.
For more information regarding the Code of Ethics, please see Item 11 – Code of Ethics, Participation or Interest
in Client Transactions and Personal Trading.
Wealth Management Services
Davis Investment Partners provides customized wealth management solutions for its Clients. This is achieved
through continuous personal Client contact and interaction while providing discretionary wealth management and
related advisory services. Davis Investment Partners works closely with each Client to identify their investment
goals and objectives as well as risk tolerance and financial situation in order to design a portfolio strategy. Davis
Investment Partners will typically construct investment portfolios utilizing individual equities, exchange-traded
funds (“ETFs”), and individual bonds to achieve the Client’s investment goals. The Advisor may also utilize
mutual funds and other types of investments, as appropriate, to meet the needs of the Client. The Advisor may
retain certain legacy investments based on portfolio fit and/or tax considerations.
Davis Investment Partners will select, recommend and/or retain mutual funds on a fund by fund basis. Due to
specific custodial and/or mutual fund company constraints, material tax consideration, and/or systematic
investment plans, Davis Investment Partners will select, recommend and/or retain a mutual fund share classes
that do not have trading costs when possible. These will in most cases be institutional share classes but in some
cases may be share classes with higher internal expense ratios than institutional share classes. Davis
Investment Partners will seek to select the lowest cost share class available that is in the best interest of each
Client weighing the expected investment pattern, expense ratios and potential ticket charges, and will ensure the
selection aligns with the Client’s financial objectives and stated investment guidelines.
Davis Investment Partners’ investment approach is primarily long-term focused, but the Advisor may buy, sell or
re-allocate positions that have been held for less than one year to meet the objectives of the Client or due to
market conditions. Davis Investment Partners will construct, implement, and monitor the portfolio to ensure it
meets the goals, objectives, circumstances, and risk tolerance agreed to by the Client. Each Client will have the
opportunity to place reasonable restrictions on the types of investments to be held in their respective portfolio,
subject to acceptance by the Advisor.
Davis Investment Partners evaluates and selects investments for inclusion in Client portfolios only after applying
its internal due diligence process. Davis Investment Partners may recommend, on occasion, redistributing
investment allocations to diversify the portfolio. Davis Investment Partners may recommend specific positions to
increase sector or asset class weightings. The Advisor may recommend employing cash positions as a possible
hedge against the market movement. Davis Investment Partners may recommend selling positions for reasons
that include, but are not limited to, harvesting capital gains or losses, business or sector risk exposure to a
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specific security or class of securities, overvaluation or overweighting of the position[s] in the portfolio, change in
risk tolerance of the Client, generating cash to meet Client needs, or any risk deemed unacceptable for the
Client’s risk tolerance.
Retirement Accounts – When the Advisor provides investment advice to Clients regarding ERISA retirement
accounts or individual retirement accounts (“IRAs”), the Advisor is a fiduciary within the meaning of Title I of the
Employee Retirement Income Security Act (“ERISA”) and/or the Internal Revenue Code (“IRC”), as applicable,
which are laws governing retirement accounts. When deemed
to be in the Client’s best interest, the Advisor will
provide investment advice to a Client regarding a distribution from an ERISA retirement account or to roll over
the assets to an IRA, or recommend a similar transaction including rollovers from one ERISA sponsored Plan to
another, one IRA to another IRA, or from one type of account to another account (e.g. commission-based
account to fee-based account). Such a recommendation creates a conflict of interest if the Advisor will earn a
new (or increase its current) advisory fee as a result of the transaction. No client is under any obligation to roll
over a retirement account to an account managed by the Advisor.
Financial Planning Services
Davis Investment Partners will typically provide a variety of financial planning and consulting services to Clients.
Services may be offered as part of an overall wealth management engagement or contracted separately.
Services are offered in several areas of a Client’s financial situation, depending on their goals and objectives.
Generally, such financial planning services involve preparing a formal financial plan or rendering a specific
financial consultation based on the Client’s financial goals and objectives. This planning or consulting may
encompass one or more areas of need, including but not limited to, investment planning, retirement planning,
personal savings, education savings, insurance needs, and other areas of a Client’s financial situation.
A financial plan developed for or financial consultation rendered to the Client will usually include general
recommendations for a course of activity or specific actions to be taken by the Client. For example,
recommendations may be made that the Client start or revise their investment programs, commence or alter
retirement savings, establish education savings and/or charitable giving programs. Davis Investment Partners
may also refer Clients to an accountant, attorney, or other specialists, as appropriate for their unique situation.
For certain financial planning engagements, the Advisor will provide a written summary of the Client’s financial
situation, observations, and recommendations. For project-based or ad-hoc engagements, the Advisor may not
provide a written summary. Project-based financial plans or consultations are typically completed within six (6)
months of contract date, assuming all information and documents requested are provided promptly.
Financial planning and consulting recommendations pose a conflict between the interests of the Advisor and the
interests of the Client. For example, the Advisor has an incentive to recommend that Clients engage the Advisor
for wealth management services or to increase the level of investment assets with the Advisor, as it would
increase the amount of advisory fees paid to the Advisor. Clients are not obligated to implement any
recommendations made by the Advisor or maintain an ongoing relationship with the Advisor. If the Client elects
to act on any of the recommendations made by the Advisor, the Client is under no obligation to implement the
transaction through the Advisor.
Bond Consulting Services
Davis Investment Partners offers bond consulting services to Clients who wish to invest in this type of product.
These services include bond research, continuous monitoring of ratings, upgrades, downgrades, price activity,
interest rate movement and all other necessary research.
C. Client Account Management
Prior to engaging Davis Investment Partners to provide advisory services, each Client is required to enter into
one or more written advisory agreements with the Advisor that define the terms, conditions, authority, and
responsibilities of the Advisor and the Client. These services may include:
• Establishing an Investment Strategy – Davis Investment Partners, in connection with the Client, will
develop a strategy that seeks to achieve the Client’s goals and objectives.
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• Asset Allocation – Davis Investment Partners will develop a strategic asset allocation that is targeted to
meet the investment objectives, time horizon, financial situation, and tolerance for risk for each Client or
unique client goal.
• Portfolio Construction – Davis Investment Partners will develop a portfolio for the Client that is intended
to meet the stated goals and objectives of the Client.
• Wealth Management and Supervision – Davis Investment Partners will provide wealth management and
ongoing oversight of the Client’s investment portfolio.
D. Wrap Fee Programs
Davis Investment Partners does not manage or place Client assets into a wrap fee program. Investment
management services are provided directly by Davis Investment Partners.
E. Assets Under Management
As of September 6, 2023, Davis Investment Partners has $338,113,057 in assets under management, of which
$331,036,402 are on a discretionary basis, and $7,076,655 are on a non-discretionary basis. Clients may request
more current information at any time by contacting the Advisor.