Davenport Advisors Stock Fund

Davenport Advisors Stock Fund The stock fund was up 23.1% for the year ending December 31, 2014 (before fees and expenses). In addition, the fund paid one distribution in the 4th quarter equal to about 2.4%, for a total return of approximately 25.5% (before fees and expenses). The fund was 84% invested in stocks, 16% in cash as of the end of the year.

EVOQ, one of the fund’s holdings, announced that they have agreed to be acquired in a transaction worth approximately $12.96 per share. We wrote about MMPI, EVOQ’s predecessor company, in our Q2 2011 Quarterly Report. At the time MMPI was in bankruptcy. The company emerged from bankruptcy under the new name EVOQ and a new management team in July 2011. We started buying MMPI stock while they were in bankruptcy. EVOQ Properties Announces Sale of Company To Investor Group Led ...by Atlas Capital Acquisition Recognizes Revitalization of Downtown Los Angeles LOS ANGELES, August 18, 2014 See link for full press release: http://www.evoqproperties.com//EVOQAnnouncesSaleOfCompany. See more

The stock fund is up 17.3% YTD as of June 31st, the end of the second quarter (before fees and expenses). The fund started the second quarter approximately 5.5% in cash and ended the quarter 14% in cash.

Our little stock fund is over $4 million now......

CommonWealth REIT Elect New Slate of Trustees http://finance.yahoo.com//shareholders-commonwealth-reit-e

This is the type of investment we will NOT be making in the stock fund.

Safeway (SWY) is in the news. Today Safeway and Albertsons announced that they are merging. Albertsons is controlled by Cerberus Capital Management. Safeway shareholders will receive approximately $40/share in cash and other consideration. Davenport Advisors Stock Fund started buying Safeway in the low $15/share range. We have traded in and out of SWY profitably several times, and presently it is one of our medium size fund holdings. Safeway has been a topic in several of our quarterly reports - you may remember .the debate between our partners on the West and East Coast rages on.

EVOQ, one of the fund’s holdings announced that they are exploring Strategic Alternatives including a sale of the company. We wrote about MMPI, EVOQ’s predecessor company, in our Q2 2011 Quarterly Report. At the time MMPI was in bankruptcy. It emerged from bankruptcy under a new name and new management team. Since then the stock has gone from about $3.30/share to $7.80/share. LA Real Estate Firm Could Be Yours for the Right Price ... 2/27/14 RENTV: Western US RE News We’ve learned that LA-based EVOQ Properties’ Board of Directors is exploring potential strategic alternatives, which may include a sale of the company. EVOQ’s portfolio includes more than 2 msf of rentable space and more than 13 total acres of prime development land in downtown Los Angeles. And, as December 31, 2013, the company had approximately $36.7 mil in cash. The company will continue operating in its normal course of business during this process. EVOQ has retained Houlihan Lokey and Eastdil Secured as financial advisors to assist the Board in evaluating its options. Jeffrey Altman, Managing Director at Houlihan Lokey, and Stephen Somer, Managing Director at Eastdil Secured, will lead the review for their respective firms. In conjunction with its broader assessment of strategic alternatives, the Board of Directors has authorized Houlihan Lokey to undertake a comprehensive marketing process for a sale of the entire company, including soliciting acquisition proposals from all interested parties. The EVOQ Board of Directors and management team are committed to maximizing shareholder value, said Martin Caverly, CEO of EVOQ. Authorizing a marketing of the company for sale demonstrates our commitment to achieving this important objective. However, this does not guarantee that the exploration process will actually result in any transaction. The company has made it known that they will not disclose further developments with respect to this process, unless and until its Board of Directors approves a specific transaction or otherwise concludes the review of strategic alternatives. The cornerstone of EVOQ’s assets is Alameda Square, a creative office campus and innovation hub situated on 32 acres, the largest contiguous block of space in Downtown Los Angeles. Alameda Square is located near the popular Arts and Fashion districts in Downtown, which has experienced a renaissance in the last 15 years and become a destination for dining, sports, entertainment, arts and culture.

Commonwealth Properties (CWH) is once again in the news: http://online.wsj.com//SB100014240527023048347045794051905 We wrote extensively about Commonwealth Properties, Company A, in our DASF Q3 2012 Quarterly Report. At the time CWH was trading at about $14/share. We wrote At these Cap Rates, you are buying Company A’s nationwide portfolio of office buildings for just $95/sf and yielding a 10% return. That is really quite absurd! We have never been able to buy well leased office buildings in the private market at that low price/sf and at a 10% return.

Safeway (NYSE: SWY) one of DASF's long time holdings, is in a talks with private equity firm Cerberus Capital Management LP over a leveraged buyout deal. http://finance.yahoo.com//cerberus-advanced-talks-buy-safe

Twitter down, REIT stocks up.....

http://online.wsj.com//SB100014240527023048871045793066114