Dodge & Cox Bets on PMs to Restore Stock's Glory
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Wednesday, April 04, 2012

Dodge & Cox Bets on PMs to Restore Stock's Glory

Dodge & Cox' [profile] PMs are again going against the crowd by focusing on bargain stocks in their bid to bring back the D&C Stock's glory, reports Susie Poppick for Money.

The Dodge & Cox flagship fund's nine managers has "always been a good, reliable core holding with a better batting average than most," Dan Culloton, an analyst at Morningstar, told Money.

The blue-chip-oriented portfolio has annual fees of 52 basis points, which is below the 126 bp. industry average. This fund has also beaten 95 percent of similarly managed funds over the past 15 years.

According to the report, Dodge & Cox is again betting on banks, a similar bet which made it suffer in 2008.

"Even though the industry has seriously recapitalized and is past the worst part of the credit cycle, financials are priced very attractively today," co-PM Charles Pohl is quoted as saying.

"We keep our eyes on something good," he says, "buy it when it plummets, and then wait until someone is willing to pay too much," Pohl said during an interview with Yahoo.

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