Lately it seems like whenever we talk to advisors and industry watchers, there's one fund family that generates the most discussion: Dodge & Cox. The venerable 78-year-old firm got caught this year holding stocks like Fannie Mae (FNM: 0.87, -0.01, -1.13%), AIG (AIG: 1.94, +0.10, +5.43%) and Wachovia (WB: 5.85, +0.58, +11.00%) as those companies spiraled downward. That's caused the flagship Dodge & Cox Stock (DODGX, Financial)Â mutual fund to post a 47.7% loss in 2008, worse than the S&P 500 index's 41.1% decline and far worse than a majority of competitors.
That's an unaccustomed place for this company. Its funds ordinarily are ranked high in their respective categories, not near the bottom of them. Indeed, Dodge & Cox Stock has returned an average annual 4.4% the last decade, a tally that puts it near the top of the large-cap value category, one of the most crowded (and competitive) groups in the industry.
That leaves shareholders wondering: Will Dodge & Cox make a comeback? While we think the answer is an unequivocal yes, we also realize we don't have a crystal ball. Unfortunately for investors there are plenty of other funds out there that sport a similar penthouse-to-the-doghouse track record. They are all left pondering what to do
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That's an unaccustomed place for this company. Its funds ordinarily are ranked high in their respective categories, not near the bottom of them. Indeed, Dodge & Cox Stock has returned an average annual 4.4% the last decade, a tally that puts it near the top of the large-cap value category, one of the most crowded (and competitive) groups in the industry.
That leaves shareholders wondering: Will Dodge & Cox make a comeback? While we think the answer is an unequivocal yes, we also realize we don't have a crystal ball. Unfortunately for investors there are plenty of other funds out there that sport a similar penthouse-to-the-doghouse track record. They are all left pondering what to do
Read the complete story
