Dodge & Cox Fund, an investment management company, released its second-quarter 2026 investor letter for “Dodge and Cox Stock Fund”.
A copy of the letter can be downloaded here
Despite volatile oil prices and rising inflation, U.S. equities reached record highs in Q2 2026, driven by a technology-led rally, particularly in memory semiconductors. The Fund’s Class A shares returned 5.57%, underperforming the S&P 500 Index’s 15.20% return and the Russell 1000 Value Index’s 13.84% gain, mainly due to underweighting in Information Technology and weak performances from several holdings. Concerns over AI disruption negatively impacted companies with strong franchises.
The Fund’s bottom-up investment approach allowed it to acquire shares in industry leaders with strong long-term fundamentals. The firm believes that increased exposure to high-quality businesses and a diversified portfolio positions the Fund well for future growth. In addition, please check the Fund’s top five holdings to know its best picks in 2026.