Right now, they should walk back from the “FANG and friends” kinds of stocks and allocate more to value, he said.
“We want companies that, when they get up in the morning, they want to do the best thing for their shareholders,” said Winters about his investment process.
Other ESG considerations like treatment of employees and environmental risks also are important, the panel said.
ESG “really helps us,” Dodson said. Companies “are less likely to be fined or have environmental problems” if they take moral issues into account. “ESG is really driving returns as much as [our value approach],” he said.
But Davis warned that ESG-run portfolios require unusually patient investors.
“The question is, can you sustain an investor’s interest and faith in a process” that doesn’t track an index and may underperform, Davis said.