Davis International's hefty Chinese equity exposure, a longtime favorite of manager Danton Goei, coupled with poor performance in consumer names have resulted in lagging relative performance during the global equity market selloff that began near 2022's start. For the year to date through March 25, the mutual fund's Y share class slid 8.9%, a bottom-quintile result within the foreign large-blend Morningstar Category and 2.7 percentage points worse than the MSCI All-Country World ex USA Index's 6.2% decline. This tough start to the year follows an abysmal 2021 for the aggressive, 30-stock strategy, when its 21.8% loss was the category's worst and trailed the benchmark's 8.2% rise. This performance profile, while disappointing, was mostly in line with what investors should expect from the strategy, given its contrarian nature and willingness to bet big on emerging companies. The strategy's various share classes retain their Morningstar Analyst Ratings of Bronze or Neutral, depending on fees.
Selected International S SLSSX
Adjusted Expense Ratio excludes certain variable investment-related expenses, such as interest from borrowings and dividends on borrowed securities, allowing for more consistent cost comparisons across funds.
Morningstar’s Analysis
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
Will SLSSX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
Process Pillar
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable SLSSX’s performance objective and investment process is for both security selection and portfolio construction.
People Pillar
The People Pillar is our evaluation of the SLSSX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
Parent Pillar
The Parent Pillar is our rating of SLSSX’s parent organization’s priorities and whether they’re in line with investors’ interests.
Davis International's China Exposure Has Hurt in 2022's Year to Date
