cancel
Showing results for 
Search instead for 
Did you mean: 
     
Highlighted
Frequent Contributor

Re: 2* Rating for Dodge & Cox - are they next?


@chang wrote:

Just talking about DODGX now—forget about DODFX and DODWX. (I conjecture that Dodge & Cox’s expertise, such as it is, does not extend to foreign companies.)

DODGX gets 4* in the LV category, suggesting it still offers “risk adjusted return” value. BUT:

Here is a chart of DODGX vs. SCHD, DSEEX and VEIPX over the last 5 years. Change the scale to "YTD" and you can see that SCHD and DSEEX demonstrate their strength both short- and long-term.

While DODGX has edged out SCHD coming off the March low, over almost all other time periods, it has not made a good impression.

What argument, if any, is there to own DODGX over SCHD? Is it really possible that a century-old firm, populated with long-tenured Stanford PhDs holding stellar credentials, and a prior record so successful that the fund was closed for years and people were offering their first-born children in exchange for a single share of DODGX, and on top of all that a super low expense ratio of 0.52% .... is it really possible for them simply to suck?


Looking at the graphs, I think that of greater concern for me would be the relative level of volatility.  I don't mind it if there is a corresponding advantage in performance, but we're not seeing that.

0 Kudos
Highlighted
Frequent Contributor

Re: 2* Rating for Dodge & Cox - are they next?

I have been saying it for years, DODGX vs SPY for the last 11 years (link).

SPY had better performance + better SD, Worst Year, Max Draw, Sharp, Sortino.  It's a knockout.

PortfolioCAGRStdevBest YearWorst YearMax. DrawdownSharpe RatioSortino Ratio
DODGX12.19% 16.25%40.55%-12.81%-29.16% 0.761.13
SPY14.37% 13.68%32.31%-4.56%-19.43% 1.011.64

 

and the sad thing for YTD the difference is huge.  SPY leads by 14% and DODGX is down by over 9%.

dodgx.PNG

 

0 Kudos
Highlighted
Frequent Contributor

Re: 2* Rating for Dodge & Cox - are they next?


@FD1001 wrote:

I have been saying it for years, DODGX vs SPY for the last 11 years (link).

SPY had better performance + better SD, Worst Year, Max Draw, Sharp, Sortino.  It's a knockout.

PortfolioCAGRStdevBest YearWorst YearMax. DrawdownSharpe RatioSortino Ratio
DODGX12.19% 16.25%40.55%-12.81%-29.16% 0.761.13
SPY14.37% 13.68%32.31%-4.56%-19.43% 1.011.64

 

and the sad thing for YTD the difference is huge.  SPY leads by 14% and DODGX is down by over 9%.

dodgx.PNG


Yes, but based on the weakness during the pullback in February.  After that pullback:

racqueteer_0-1597782753730.png

Clearly, what they were holding didn't fare well, but they've held up since then...

 

0 Kudos
Highlighted
Frequent Contributor

Re: 2* Rating for Dodge & Cox - are they next?

Nope, since the bottom on 3/23 to yesterday DODGX lags by over 4%.

and look at the crazy volatility(yellow line)

dodgx.PNG

0 Kudos
Highlighted
Contributor ○○

Re: 2* Rating for Dodge & Cox - are they next?

In 2009 I did some tax loss harvesting. For my international holdings in my taxable account I ended up with holdings in OAKIX and DODFX at a very low cost basis. Although these funds once deserved to be held in high esteem, their luster is gone. During the 2020 pandemic, I escaped their clutches. Tax loss harvesting can be profitable, and for me at the end of my career (2009 was a point of high income and taxes) it made sense. However, there is a downside that it makes the funds in your taxable account hard to sell going forward from a tax standpoint.

0 Kudos
Highlighted
Frequent Contributor

Re: 2* Rating for Dodge & Cox - are they next?

Wouldn’t you know on the day I post SCHD drops 0.44% while DODGX drops only 0.23%.

Interesting—I thought DODGX’s relatively poor performance would be traceable to its permanently high stake in financials. But upon checking, SCHD has an equally oversized stake in financials. Where they differ the most is health care (DODGX high, SCHD low). So it’s not clear where the relative performance differential arises, unless it’s just D&C picking lousy stocks.

0 Kudos
Highlighted
Frequent Contributor

Re: 2* Rating for Dodge & Cox - are they next?

Dang it all when—on a day when all market indices soared—a vanilla bond index (FXNAX) goes up 0.24% and DODGX goes up only 0.07%.

OK, I know today wasn’t Value’s day in the sun, but even SCHD was up 0.31%.

0 Kudos
Highlighted
Frequent Contributor

Re: 2* Rating for Dodge & Cox - are they next?

To its credit, though, DODGX is beating its category and benchmark over every single time period. That’s something.

17C1E475-3A58-40F0-99AF-DC214C19E038.png

CE2802E1-C36C-46E8-A263-1C8E1B45B8AB.png

0 Kudos
Highlighted
Frequent Contributor

Re: 2* Rating for Dodge & Cox - are they next?

They do beat their category because they invest in growth companies which I pointed already and why they should be compared to SPY

dodgx.PNG

0 Kudos
Highlighted
Frequent Contributor

Re: 2* Rating for Dodge & Cox - are they next?

Good observation @FD1001 but I don't think D&C has been doing that for very long. For years their top 10 has been WFC, HPQ, BOA etc., lots of banks and other typical value fare. The FANGs I think are fairly recent, based on my occasional looks at their website.

Value may be dead, but within the category I don't think D&C are bad. However, I do believe their competence tails off beyond the US border. DODFX and DODWX stunk, and I'm glad to be out of them.

0 Kudos
Announcements