Dodge & Cox Q1 2026 13F Holdings and Activity Report

I. Institutional Overview

Dodge & Cox, a venerable name in the world of asset management, has long been synonymous with a disciplined, research-driven value investing philosophy. Founded in 1930 in the midst of the Great Depression, the firm has maintained a remarkably consistent approach for nearly a century, focusing on long-term capital appreciation through a committee-based decision-making process. As of the portfolio snapshot taken on March 31, 2026, the institution manages a massive equity portfolio with a total reported market value of approximately $181.61 billion. This scale places Dodge & Cox among the elite tier of global institutional investors, where their movements are closely scrutinized by market participants seeking to understand the "smart money" perspective on valuation and long-term industrial trends.

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II. Sector Allocation Analysis

Healthcare stands as the largest sector allocation at 21.34%. This is a classic value-investing move, as healthcare companies often provide consistent cash flows, strong intellectual property moats, and a degree of insulation from economic downturns. The firm's heavy weighting here suggests a defensive posture, perhaps anticipating a period of slower economic growth or increased market volatility. Within this sector, Dodge & Cox likely favors large-cap pharmaceutical and managed care companies that trade at reasonable multiples relative to their long-term growth prospects. The aging global demographic provides a structural tailwind that the firm is clearly keen to exploit.

With nearly a fifth of the portfolio in Financials, Dodge & Cox maintains its reputation as a premier analyst of banks, insurance companies, and asset managers. Financial stocks are the traditional hunting ground for value investors due to their sensitivity to interest rates and their often-discounted book values. This 19.07% weighting suggests that the firm is comfortable with the current interest rate environment and believes that the financial sector is well-capitalized to handle potential credit cycles. It also indicates a bet on the continued resilience of the US and global financial systems.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

III. Top 10 Holdings Deep Dive

Johnson Controls occupies the prestigious top spot in the Dodge & Cox portfolio, representing 4.14% of the total assets. This is a "conviction holding" in every sense of the word, with the firm having maintained a position since 2016. JCI is a global leader in smart, healthy, and sustainable buildings. The investment logic here is rooted in the global push for energy efficiency and the decarbonization of commercial real estate. Despite a slight reduction in the number of shares held (down 4.76% this quarter), the portfolio weight actually increased from 3.9% to 4.14%. This indicates that the stock's price appreciation outperformed the rest of the portfolio, and the "reduction" was likely a tactical rebalancing to prevent the position from becoming too dominant. Dodge & Cox remains bullish on JCI’s fundamental breakout as a "green tech" industrial play, viewing it as a core allocation that benefits from long-term structural tailwinds in building automation.

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IV. Major Buys/Additions

The most significant move this quarter is the initiation of a massive new position in Sunbelt Rentals, valued at $3.46 billion. This is not a "starter position"; it is an immediate entry into the firm's top 15 holdings. Sunbelt Rentals, a leader in the equipment rental industry, is a classic "cyclical value" play that benefits from increased infrastructure spending and the trend of companies choosing to rent rather than own heavy machinery. Dodge & Cox’s motivation here is likely a " growth acceleration bet " on the US construction and industrial sectors. By entering at this scale, the firm is signaling that it believes Sunbelt is at the beginning of a multi-year upcycle driven by federal infrastructure bills and the "reshoring" of American manufacturing. The valuation at the time of entry likely met their strict criteria for a high-quality industrial with a dominant market position.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

V. Major Sells and Exits

The most dramatic reduction this quarter is in FedEx, where Dodge & Cox slashed its position by 35.93%, realizing an estimated $1.99 billion. This is a " Major Strategic Contraction " in a long-term holding. The motivation here is likely a combination of "profit-taking" and a fundamental reassessment of the global logistics landscape. FedEx has faced significant pressure from rising labor costs and a shifting e-commerce environment where Amazon continues to insource its delivery network. By trimming such a large portion of the position, Dodge & Cox is signaling a lack of confidence in the company's ability to maintain margins in a "lower-for-longer" volume environment. This move retrieved a massive amount of cash that was subsequently redeployed into higher-conviction growth areas like Microsoft.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

VI. Investment Insights and Risk Warnings

The logic chain is clear: 1. Sold what : Massive trims in FedEx (FDX), Norfolk Southern (NSC), and Sanofi (SNY). 2. Why sell : These companies are struggling with rising labor/input costs and lack the "technological moat" to pass these costs on without sacrificing volume. 3. Bought what : Huge entries into Sunbelt Rentals (SUNB), Microsoft (MSFT), and Arthur J. Gallagher (AJG). 4. Why buy : These companies represent "Efficiency Leaders." Microsoft provides the AI tools to lower costs; Sunbelt Rentals allows companies to avoid the capital expenditure of owning equipment; AJG provides essential risk management services with zero inventory risk. 5. Overall change : The portfolio has become more "capital-light" and "technologically empowered," while maintaining its core value discipline.

Dodge & Cox operates with a multi-billion dollar capital base and a committee-based decision process. Their "risk budget" and "time horizon" are vastly different from those of an individual investor. A 35% reduction in FedEx for them might be a tactical rebalancing, whereas for a retail investor, it might look like a total exit signal. Furthermore, their cost basis for stocks like Charles Schwab (held since 2013) is likely so low that they can afford to hold through significant volatility that would wipe out a newer investor.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

Sources and limitations

This report uses public U.S. Securities and Exchange Commission Form 13F disclosures and structured data maintained by 13F Hub. A 13F filing is a quarter-end snapshot of reportable long positions, is normally published with a delay, and does not disclose every short position, cash balance, bond, derivative, or non-U.S. asset.

Narrative content is prepared from the same-period SEC disclosure and 13F Hub structured data, then checked before publication. This material is for research and education, not personalized investment advice.