YOUR PORTFOLIO Manager style
Dodge & Cox Global Stock
Maguire says being a value manager not only requires a willingness to go against the crowd , but a strong stomach , as they will often have to accept periods of underperformance lasting many years before they are vindicated . James Johnsen , head of private clients at Church House , agrees with him . “ Someone who is sticking to a particular style will by definition have periods where they don ’ t look too clever ,” he says . Maguire points to two periods in particular that illustrate this point – the first was in 1999 to 2000 , when you needed to avoid expensive stocks ; the second was 2009 , when you needed to buy cheap ones . He describes these phases as “ two sides of the same coin ”. “ They were about 10 years apart , showing how long value investors have to wait sometimes . In those two years they gained so much on the market and it took tremendous guts . “ You had to hold your nerve , and if you didn ’ t , your long-term track record would be ruined .”
Charles F . Pohl
He cites the team behind the Dodge & Cox Global Stock fund as one that epitomises this trait .
Adhering to a “ large value ” approach , chief investment officer Charles F . Pohl ( pictured ) and his team “ stick to their process , especially when under pressure ”, says Maguire . “ The secret of the team ’ s success has been holding their nerve in crucial moments for value stocks , during which a wrong move could destroy their long-term performance .” John Monaghan , senior investment research analyst at Square Mile Investment Consulting & Research , says that Dodge & Cox has “ a very strong pedigree in the US ”, with its origins dating back to the 1930s . “ Dodge & Cox deserves greater recognition by UK investors ,” he says .
/ 28 / trustnet . com