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2005's Top Fund Shop Revealed





Dodge & Cox made to the top spot of Morningstar's top fund list for 2005. If I have any regret, it is that I didn't buy into its funds earlier. I'm currently having more than 15% of my portfolio invested in Dodge & Cox International Stock (DODFX). Unfortunately, its domestic fund has been closed.

Other shops in the top 10: PIMCO, Columbia, Fidelity, Oppenheimer Funds, Vanguard, T. Rowe Price, American Funds, Putnam and Franklin Templeton.

From Morningstar:

Among the 10 biggest shops, best in show clearly goes to Dodge & Cox, whose funds had an asset-weighted average return ranking of top 22% for 2005 and top 3% for the trailing five years. The firm has an outstanding analyst staff, low costs, and, unlike some others on this list, is willing to close funds when needed. Currently, two of its four funds are closed.

One of the biggest surprises on the list is that Columbia Funds tied PIMCO for second place for 2005. As one of the best bond managers around, it's no surprise that PIMCO is near the top. But Columbia?

This post has 1 comment. Read and share your opinions.

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Comments
>>> Jerry Maguire Commented on March 7, 2006

Dodge & Cox certainly has a great track record. I have had significant assets in their Stock, International, and their Income funds for several years. The best thing about their firm is their management and conservative value philosophy. I wouldn't worry too much that their domestic fund is closed. One of the problems with Dodge & Cox is that they are too big. They closed their funds too late. Their assets are very large and it will be difficult for them to replicate their historical returns. With that being said, I am not moving my money from them. They are deep value and I view them more of as a "savings account".

There is another conservative value manager that I like and that is First Eagle Funds. Their Overseas is closed, but their International is still open I believe. They have a similar philosophy as Dodge & Cox, but they are smaller and their fees are slightly higher. I think they are better than D & C on the overseas side.

From looking at your portfolio, it definitely looks like you are a blue-chipper, a la Warren Buffet. I think the key is finding that conservative value fund manager whose asset base is still small.

Good luck.



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