REXR - Davis Real Estate Fund 2025 Semi-Annual Review

2025-08-13 09:05:00 ET

Davis Real Estate Fund's (DREF) Class A shares provided a total return on net asset value of -1.79% for the six months ended June 30, 2025. Over the same period the Wilshire U.S. Real Estate Securities Index returned +1.74%. During the most recent one-, five- and 10-year periods, a $10,000 investment in Davis Real Estate Fund would have returned $10,458, $13,458 and $16,744, respectively. DREF has not had a good year nor even a good couple of years. Prospect theory, for those who may be interested, suggests investors facing potential losses tend to become more risk-seeking. However, instead of genuflecting to the behavioral bias of altering our risk tolerance in the face of underperformance, we are staying true to our methods. The Davis Investment Discipline has over long durations helped us generate attractive risk-adjusted returns. Even though we are in a bad stretch now, we are optimistic that better performance lies ahead....

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