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Davis: Active ETFs Outperforming Markets

Bloomberg Markets •
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Chris Davis, chairman of Davis Advisors and portfolio manager of the Davis Select US Equity ETF (DUSA) and Davis Select Financial ETF (DFNL), appeared on Bloomberg ETF IQ to discuss active management's resurgence. Davis argued that active strategies are delivering superior returns compared to passive alternatives in the current market environment.

During the interview with hosts Scarlet Fu and Eric Balchunas, Davis highlighted how value investing approaches are gaining traction as investors seek alpha in a volatile market. He emphasized that active ETFs are experiencing significant growth as sophisticated investors recognize the limitations of pure index tracking strategies during periods of market dislocation.

The conversation also touched on Davis's views regarding Berkshire Hathaway and international market exposure. Davis suggested that the legendary conglomerate's approach validates active management principles, while noting that selective international exposure can enhance portfolio diversification. He stressed that active managers can better navigate geopolitical risks and identify opportunities that passive strategies might miss.