Over 95 Years of Investment Focus

“An investment management firm is dependent on the quality of its personnel and on their ability to cooperate effectively in the decision-making process... It is good to know that my younger associates are determined to manage further growth in a way that will maintain and improve the firm’s ability to meet the specific needs of its clients.”

—E. Morris Cox, Co-Founder

Our firm was founded in 1930 in the wake of the Roaring Twenties. In response to the speculative excesses of that era, our founders believed clients’ interests would be best served by a focused, long-term, valuation-aware investment strategy offered at reasonable and transparent fees. That belief is as strong today as it’s ever been.

In our sixth generation of leadership, we know our success is dependent on our clients’ success. To achieve that success—measured by excellent long-term investment performance and exceptional service—we are committed to both preserving our cultural bedrock and building on it.

Honed over nearly 100 years, our foundational pillars have made Dodge & Cox durable. In academic research, these same pillars have been shown to be shared characteristics among successful active managers.

1. Our independence enables long-term client alignment. Dodge & Cox is 100% owned by our active employees. This is critically important to ensure we are aligned with our clients and can focus on what matters most to them—long-term investment results. Furthering our alignment, our Investment Committee members invest significantly alongside our clients.¹

2. We focus on delivering investment results to our clients, not growing assets. No one at Dodge & Cox is compensated for bringing in new business. We focus our energy and resources on maximizing long-term returns across a select set of strategies.^2,3 This focus is critical to our ability to drive results for our clients.

3. We have a seasoned and collaborative investment team.⁴ Our manager tenure and retention are among the highest in the investment management industry. Our collaborative process leverages this experience, facilitates the exchange of ideas, and sharpens our thinking.⁵ We aim to be the employment destination of choice for exceptionally talented long-term investors who value a collegial, high-performance culture.

4. Our low fees and expenses allow clients to compound more of their investment over time. We aim to keep fees low.⁶ Consistent with our long-term investment horizon, we have historically had long average holding periods and low turnover ratios, which reduces trading costs.⁷

5. We stake out non-consensus positions. We build differentiated portfolios with consistently high active share.⁸ The quality of our team’s fundamental research gives us the fortitude to persist with long-term contrarian positions. We believe this persistence, especially through periods of volatility, is key to creating value for our clients. 

While these characteristics are essential to delivering superior long-term investment results, they are not static. As investors, we’ve interviewed thousands of management teams over the years and have identified a common thread among the most exceptional: the passionate pursuit of improvement. At Dodge & Cox, we’ve ingrained this philosophy into our own DNA. Regardless of the progress we make, we continue to refine our investment process, optimize talent development, enhance our clients’ experience, and strengthen our operating foundation. The continuous pursuit of excellence across all aspects of our business—against a backdrop of dynamic markets and an evolving world—requires unrelenting curiosity, drive, and humility.

As we look ahead, we will stay true to our cultural roots and foundational pillars while searching for ways to further improve. If you’re an existing client or Fund shareholder, we are grateful for the confidence you have placed in our firm and our people. If we have not previously worked with you, we hope you will give us an opportunity to be of service to you.

With gratitude on behalf of our colleagues,

David Hoeft                                                   Roger Kuo     
Chair and CIO                                              CEO and President