The funds were closed to new investors in 2004, but have remained open to additional investment from existing shareholders, according to a press release.
The firm said the decision to close the two Funds in 2004 was based on “prospective caution,” as the pace of new money coming into Dodge & Cox on a daily basis accelerated throughout 2003. The firm said that closing the funds was successful in slowing the pace of growth, “…though cash flows into the funds generally remained positive through mid-2007 as existing shareholders added to their accounts.’
Since mid-2007 the volatile investment environment has created what Dodge & Cox said it believed to be “many interesting long-term equity and fixed income opportunities.’ This environment, coupled with weak short-term relative returns, may have contributed to recent redemption activity, according to the firm, which said that its intent in reopening the funds is to “better balance subscription and redemption activity, so the Fund can capitalize on attractive opportunities while maintaining current positions.’
Dodge & Cox was founded in 1930 and managed over $235 billion for individual and institutional investors in mutual fund and private accounts as of December 31, 2007. For more information on the Dodge & Cox Funds, check out http://www.dodgeandcox.com