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$84.2B Dodge & Cox Reduces 10, Sells JCP, DELL, NWSA, A in Second Quarter

August 27, 2013 | About:
Sally Jones

Sally Jones

49 followers
Boston-based Dodge & Cox Funds is the giant among all mutual fund, hedge fund and investment companies, and it makes giant-sized trades. Actively trading in the second quarter of 2013, the firm sold out four companies, including iconic American companies - J.C. Penney Co. Inc. (JCP) and Dell Inc. (DELL). The firm also reduced 10 positions, unloading companies in software, oil and gas, and a monolithic beverage company, among others.

The Dodge & Cox Stock Fund had a total return of 17.6% for the six months ended June 30, 2013, compared to 13.8% for the S&P 500 Index. On June 30, the fund had net assets of $46.4 billion with a cash position of 1.5%, according to a company press release. In 2012, the Dodge & Cox Stock Fund had an annual return of 22.01%. In this first quarter of 2013, the same fund returned 11.74%. The firm has averaged a return 21.08% over 12 months.

The recently updated portfolio of Dodge & Cox lists 166 stocks with seven of them new; the total value is $84.20 billion, and the quarter-over-quarter turnover is 7%.

Here’s a review of the firm’s top six sells and reductions, as of the quarter ending June 30, 2013.

Sold Out: J.C. Penney Co. Inc. (JCP)

Impact to Portfolio: -0.38%

Down 48% over 12 months, J.C. Penney Co. Inc. has a market cap of $2.92 billion; its shares were traded at around $13.81, with a P/B of 1.30.

Tracking share price, revenue and net income:

1377626499722.png

Guru Action: As of June 30, 2013, Dodge & Cox sold out its position, unloading 20,472,393 shares at an average price of $16.83, for a loss of 21.3%. The trading history shows six quarters of buying and selling and losses all the way since the fourth quarter of 2008.

Sold Out: Dell Inc. (DELL)

Impact to Portfolio: -0.29%

Up 27% over 12 months, Dell Inc. has a market cap of $24.25 billion; its shares were traded at around $13.81, with a P/E of 18.10. The P/B ratio is 2.20.

Tracking share price, revenue and net income:

1377626714149.png

Guru Action: As of June 30, 2013, Dodge & Cox sold out its position, unloading 16,187,800 shares at an average price of $13.54, for a gain of 2%. The trading history shows six mixed quarters of buying and selling since the second quarter of 2008. The highest gaining quarter was the fourth quarter of 2012 for an average gain of 41.2%.

Sold Out: News Corporation (NWSA)

Impact to Portfolio: -2.5%

Up 0% over 12 months, News Corporation has a market cap of $6 billion; its shares were traded at around $15.77. The P/S ratio is 0.70.

Tracking share price, revenue and net income:

1377626873255.png

Guru Action: As of June 30, 2013, Dodge & Cox sold out its position, unloading 65,428,409 shares at an average price of $15.52, for a gain of 2.1%.

REDUCED: Occidental Petroleum (OXY)

Impact to Portfolio: -1.16%

Current Shares: 373,649

Up 0% over 12 months, Occidental Petroleum has a market cap of $70.46 billion; its shares were traded at around $87.62, with a P/E of 16.10. The P/B ratio is 1.70.

Tracking share price, revenue and net income:

1377627104108.png

Guru Action: As of June 30, 2013, Dodge & Cox reduced its position by 96.882%, selling 11,616,712 shares at an average price of $88.19, for a loss of 0.8%.

He has averaged a gain of 19% on 6,555,964 shares bought at an average price of $73.55 per share. On shares sold, he has averaged a gain of 2% on 29,208,491 shares sold at an average price of $85.58 per share.

His holding history:

1377625581972.png

REDUCED: BMC Software Inc. (BMC)

Impact to Portfolio: -0.7%

Current Shares: 261,667

Up 10% over 12 months, BMC Software Inc. has a market cap of $6.53 billion; its shares were traded at around $45.97, with a P/E of 21.20. The P/B ratio is 7.20.

Tracking share price, revenue and net income:

1377627272331.png

Guru Action: As of June 30, 2013, Dodge & Cox reduced its position by 97.91%, selling 12,282,028 shares at an average price of $45.11, for a gain of 1.9%.

He has averaged a gain of 41% on 9,119,067 shares bought at an average price of $32.63 per share. On shares sold, he has averaged a gain of 10% on 26,282,167 shares sold at an average price of $41.73 per share.

REDUCED: Diageo PLC (DEO)

Impact to Portfolio: -0.28%

Current Shares: 166,417

Up 15% over 12 months, beverage and wine company Diageo PLC has a market cap of $85.76 billion; its shares were traded at around $124.34, with a P/E of 20.10. The P/B ratio is 8.90.

Tracking share price, revenue and net income:

1377627461052.png

Guru Action: As of June 30, 2013, Dodge & Cox reduced its position by 91.83%, selling 1,869,750 shares at an average price of $120.96, for a gain of 3%.

He has averaged a gain of 85% on 9,374,566 shares bought at an average price of $67.39 per share. On shares sold, he has averaged a gain of 42% on 9,208,149 shares sold at an average price of $87.45 per share.

Founded in 1930, Dodge & Cox Funds leads five funds, including the Dodge & Cox Stock Fund, Dodge & Cox Global Stock Fund, International Stock Fund, Balanced Fund and Income Fund.

Here is the complete portfolio of Dodge & Cox.



Also check out:

1. Dodge & Cox's Undervalued Stocks

2. Dodge & Cox's Top Growth Companies

3. Dodge & Cox's High Yield stocks

4. Stocks that Dodge & Cox keeps buying



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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 5.0/5 (2 votes)

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