Davenport Value & Income Fund on International Flavors & Fragrances Inc.

Davenport purchased International Flavors & Fragrances while the company was simplifying its portfolio through divestitures of non-core operations. The announced sale of the Food Ingredients segment for $4.3 billion provides capital that management intends to deploy toward share repurchases and debt reduction. The remaining businesses should have faster growth and higher margins than the current consolidated portfolio. Davenport believes that improved business quality could ultimately justify a higher valuation. At purchase, the shares traded near 16 times earnings, below longer-term averages, while offering approximately a 2 percent dividend yield.