Throughout this period, we continually reassessed the company's major risks and challenges, including its competitive position, balance sheet, cash flow, and capital spending needs. We also evaluated the value of the company's customer base, and its other assets, including its ownership stake in Clearwire. Concluding that the shares had significant potential, we decided to add meaningfully to the Fund's position during 2012. Importantly, our analysis compared the existing price to what we believed the long-term value could be; the initial purchase price did not cloud our analysis.
Recently, the combination of stabilizing market share and continued progress on infrastructure upgrade projects was partly recognized by investors, and Softbank's offer to buy a controlling interest in Sprint and improve funding caused the shares to move even higher. During the past 12 months, Sprint (up 115%) was one of the largest contributors to the Fund's outperformance.
From Dodge & Cox's semi-annual report here.