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Mutual Funds

A Bargain Hunter Finds Value in Surprising Places

Dodge & Cox Stock has recovered nicely from the depths of the 2007–09 bear market. A low-key San Francisco money manager with a taste for bargains, D&C misread the severity of the financial crisis and held on too long to the likes of Wachovia, Fannie Mae and American International Group, telling clients in June 2008 that the stocks were good values because their prices had sunk more than their businesses had deteriorated. Of course, prices would fall much further. Lately, D&C has been buying stocks that have historically been fare for growth funds. Among them: drug maker Merck, biotech kingpin Amgen and computer giant Hewlett-Packard, Stock’s biggest holding at last report.