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Dodge and Cox Stock Fund cites AI worries, adds new positions
The fund reported Class A shares gained 5.6% in Q2 2026, trailing the S&P 500’s 15.2% and the Russell 1000 Value’s 13.8%.
Dodge and Cox Stock Fund, an investment management company, released its second-quarter 2026 investor letter, saying U.S. equities reached record highs in Q2 even as oil prices stayed volatile and inflation rose.
In the letter, the firm said the fund’s Class A shares returned 5.57% during the quarter, underperforming the S&P 500 Index’s 15.20% and the Russell 1000 Value Index’s 13.84%. It attributed the gap largely to underweight exposure to Information Technology and weaker results from several holdings, adding that concerns over AI disruption hurt companies with strong franchises and profitability.
The fund also highlighted its bottom-up approach, saying it opened positions in industry leaders it believes have long-term fundamentals not fully reflected in current prices. In that context, it noted that it initiated a position in Visa, describing the payments company as a leader with network effects and high barriers to entry.
The letter further referenced KKR & Co. Inc. as a new position, following the company’s share-price decline amid broader macroeconomic concerns. KKR closed at $97.11 per share on July 21, 2026, reflecting a market capitalization of $90.55 billion, according to the article.
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