Dodge & Cox is on a roll.
Assets under management at the San Francisco-based firm reached $270 billion as of Dec. 31, the highest in its 84-year history, company data show.
Net mutual fund inflows in 2014 were a firm-record $26 billion with 92% of that going into two strategies. Inflows into separate accounts were also up, but the firm could not provide those numbers.
In part, firm officials can thank the turmoil at Pacific Investment Management Co., Newport Beach, Calif., for the stellar year.
The $39 billion core bond fund, the Dodge & Cox Income Fund, garnered $13 billion in net inflows in 2014, data from Morningstar Inc. show. The firm also has $31 billion in separate accounts built on the strategy, $1 billion of which came in during the last quarter of 2014.
Its largest offering, the $64 billion international stock fund, took in $11 billion in net inflows in 2014, Morningstar data show.
While performance at both funds is strong, it's clear the Dodge & Cox bond strategy benefited from outflows at PIMCO, said investment consultant Michael Rosen, a principal of Angeles Investment Advisors LLC, Santa Monica, Calif.
Clients pulled more than $100 billion from PIMCO's Total Return Fund in 2014 because of performance problems and personnel changes, including the departure of William H. Gross, PIMCO's co-founder and co-CIO, who joined Janus Capital Group in September.
Morningstar data show the Dodge & Cox mutual fund garnered $7 billion — more than half of its inflows for 2014 — in the last three months of the year, after Mr. Gross' departure from PIMCO.
Investors who moved to the Dodge & Cox fixed-income strategy from PIMCO include the $1.2 billion San Luis Obispo County (Calif.) Pension Trust; the $835 million 401(k) plan of Parsons Corp., Pasadena, Calif.; the Yuma (Ariz.) Regional Medical Center's $24 million 401(k) plan; the $177 million West Palm Beach (Fla.) Firefighters Pension Fund; and $114 million 401(k) plan of GoDaddy.com LLC, Scottsdale, Ariz.
Dodge & Cox officials expect to pick up more separate account inflows in the next few months, noting many institutions still are in the process of finding a replacement for PIMCO.
But you won't find officials of the employee-owned value-oriented money manager bragging about 2014's inflows. (The core bond fund inflows ranked it fifth last year among the 1,365 peer fixed-income funds followed by Morningstar and the international stock fund ranked second among 1,145 international equity mutual funds.)
Dodge & Cox does no advertising and only limited marketing. It has no public relations staff.
That approach, is “very unique,” Mr. Rosen said, describing himself as a fan of the way Dodge & Cox operates.
But it's the way Dodge & Cox has operated since its founding in 1930. Dodge & Cox Chairman and Chief Investment Officer Charles Pohl said the firm's philosophy is to focus on client investments.
“You have to ask yourself the question: Are you focused on investing the money for the benefit of your clients long term; is that what you're coming in and doing every day? Or are you thinking about marketing strategies or operational complexity, those other sorts of things?”
The key tenets of the firm's investment and management philosophy date to its founding: find undervalued investments, buying low and selling high.