Big fund news: Effective today, Dodge & Cox Stock fund and Dodge & Cox Balanced fund will reopen to new investors. Both funds shut their doors to new money in 2004 (although they have remained open to existing shareholders). According to a statement posted on the San Francisco company's website:
Since mid-2007 the volatile investment environment has created what Dodge & Cox believes to be many interesting long-term equity and fixed income opportunities. This environment, coupled with weak short-term relative returns, may have contributed to recent redemption activity. Dodge & Cox's intent in reopening the Funds is to better balance subscription and redemption activity, so the Fund can capitalize on attractive opportunities while maintaining current positions. Dodge & Cox believes there is capacity to accommodate reasonable growth into the foreseeable future.
Dodge & Cox Stock, the company's flagship fund with $63 billion in assets, has lagged behind other funds that invest in large, bargain-priced stocks by 5 percentage points over the past year. But the fund's 11 percent annualized return over the past decade through February 1 beats 98 percent of those rivals. Balanced, which invests in both stocks and bonds, has also trailed peers over the past year but ranks in the top 3 percent of its category over the past decade.