Dodge & Cox Balanced: The Best of Both Worlds
Editor's note: This is part of a continuing series of articles looking at the 20 biggest no-load stock funds.
Dodge & Cox is so well known for its stock-picking prowess that people sometimes forget that the low-profile, San Francisco-based fund manager is also a dab hand at investing in bonds. Both skills are on display in Dodge & Cox Balanced, which borrows liberally from its two siblings, Dodge & Cox Stock and Dodge & Cox Income, a bond fund.
What you get with Balanced is a fund that has delivered outstanding returns with relatively low volatility. Over the past decade, the fund has returned 12% annualized, nearly five percentage points better than the average return of all balanced funds. In only one of those years did Balanced rank worse than 40% of funds in its category.
Dodge & Cox has a fairly unorthodox way of researching and picking bonds. The same team of analysts studies both stocks and bonds. "If we have a very positive outlook for the long-term growth and success of a company, it makes us interested in buying the bond," says Charles Pohl, co-director of research.
Alas, Balanced is closed to new investors, but Dodge & Cox Income (DODIX), which remains open, is a fine choice for conservative bond investors. If you currently hold Balanced and like the allocation, feel free to BUY more.
To learn more about the fund firm, see The Dodge & Cox Mystique, an interview with two D&C veterans.
Dodge & Cox Balanced (DODBX)
View updated data for this fund and compare the performance of the 20 biggest no-load stock funds.