(DUSA) Davis Select US Equity - Ratings and Ratios

Davis Select US Equity (BATS:DUSA) is an actively managed exchange-traded fund that focuses on investing in a concentrated portfolio of U.S. equity securities, with a minimum of 80% of its net assets allocated to this asset class. The funds investment strategy is centered around a select group of 15 to 35 companies, indicating a preference for a focused rather than diversified portfolio. This approach allows the fund manager to capitalize on their highest-conviction ideas, potentially leading to outsized returns if the selected companies perform well.

The funds investment universe includes mid- and small-capitalization companies, defined as those with a market capitalization of less than $10 billion, alongside larger-cap companies. This flexibility enables the manager to identify opportunities across various market segments. While the fund is biased towards U.S. companies, it retains the flexibility to invest up to 20% of its net assets in non-U.S. companies, potentially providing a diversification benefit. The funds non-diversified nature means that its performance can be more significantly impacted by the performance of individual holdings.

Given the current technical data, with the last price at $42.43, SMA20 at $41.34, SMA50 at $41.99, and SMA200 at $42.19, the fund is exhibiting a slightly bullish trend as it trades above its shorter-term moving averages and near its long-term moving average. The Average True Range (ATR) of 1.24, representing a 2.93% daily range, indicates moderate volatility. Considering the 52-week high and low of $46.14 and $37.58, respectively, the fund is currently trading near the lower end of its recent range, suggesting potential for growth if it can break through resistance levels.

Combining the technical and fundamental data, a forecast for DUSA could be constructed. With Assets Under Management (AUM) at $657.24M USD, the fund has a reasonable size to be considered viable for investment. The technical indicators suggest a potential upward trajectory if the fund can maintain its position above the SMA50 and SMA200. A break above the 52-week high of $46.14 could signal further upside potential. Conversely, a drop below the SMA20 at $41.34 may indicate a pullback. Therefore, a potential investment strategy could involve monitoring the funds price action relative to these key technical levels, with a positive outlook if it sustains above $42.19 and targets $46.14, while a drop below $41.34 may necessitate a reevaluation.