Dodge & Cox Reputation?
Does anybody know what Dodge & Cox's rep is like? I know they're a boutique value investing manager, but are they well respected? Would someone there have good opportunities after on the buy-side as opposed to working at a smaller fund that is also well respected?
Not sure you still count as a boutique if you're running a couple hundred billion, but I would say they're well respected. Long investment horizon (last time I spoke with them their average holding period was 7 years) with a long investment process. Sounds like it takes a couple months or longer to get a name into the book. Very much the embodiment of a traditional mutual fund.
At least for me, Dodge & Cox is in a select group of firms that represent the ultimate exit opp into LO AM.
Mind listing the other names in that select group?
Again, this is all just my preference.
Capital Group, Wellington, Ruane Cunnif & Goldfarb, Third Avenue, Brandes, etc.
Mind giving a brief description of pros / cons of these top LOs? Curious about the investment process / team, comp, progression, lifestyle etc.
For example I would imagine CG is very different from Ruane given differences in firm size / AUM
Yes, they are amongst a handful of the most well-respected LO shops out there. There’s a reason the average analyst/PM tenure is north of 10 years, probably closer to 15; you land a job there, you usually don’t leave by your own volition. Long time horizon + more than $100B in capital = a desirable environment for many.
In terms of exit ops, the pre-MBA associate program sends many to top MBA programs (M7 is not uncommon). I’ve seen a couple folks exit to other LO value funds and even hedge funds from the pre-MBA program as well.
Hope that sheds some light.
Very helpful, thank you!
Question (sorry for diverting the discussion):
Why do their funds (especially equities) and those of their peers seem to have way more trouble beating their benchmarks in the last ten years vs before? Is it the rise of passive investing making trading expenses a lot higher to divert from the index? Does it have to do with quantitative easing or other recent central bank policy? I'm personally rather distrustful of the value of long only diversified equity active management but their funds' since inception performance was impressive.
Last 10 years has been terrible for the value factor; ergo as a value fund it's pretty tough to outperform in that environment.
Have you been interviewing with them?
I went to MBA business schools">M7 B-school. On of my friends had worked for them prior to MBA and they didn't even re-hire him after he graduated. Great pay, WL balance due to horizon, brilliant investors, nobody ever leaves. It has to be top 2-3 AM in the US.
As mentioned it's considered one of the top LO firms and career opportunities. Personally I wonder how sustainable their strategy is long term given that they're basically hugging the benchmark, which is all a firm can really do if it's managing >$300bn. However they've done it, it's working well for them and definitely considered a top firm.
Anyone hear back from their 2021 Equity Research Summer Associate program? Did a second round a while ago (3-4 weeks) but have heard nothing back. Not expecting anything at this point.
Yea, I finished a fourth round last Tuesday, but have yet to hear back. Anyone else?
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