DUSA Outperforms Russell 1000 Value by 600 Basis Points Annually, Highlighting Active Management’s Edge

DUSA has outperformed the Russell 1000 Value index by approximately 600 basis points annually over the past decade. The fund holds 26 stocks and trades at 14 times earnings, a valuation significantly lower than the 24 to 25 times earnings seen in the S&P 500. Davis Advisors, the firm behind DUSA, argues that active management can better respond to market disruptions, such as the decline of once-dominant firms like Kodak, which remained in the S&P 500 for years despite its business being upended by digital photography. The firm’s active strategy is concentrated, with Davis and his partners as the largest investors in their own funds, aligning their interests with shareholders.