How short peoples memories are. When the market tanked this fund got so much bad press that people were dumping it like crazy. When a professional money manager totted this funds horn people thought he was crazy. It goes to show what patience can do for you.
You are right about management team adding value in long term here. I was reading some very good explanations of problems with mutual funds at ChainStreet Capital under how we are diff section. It describes some of the problems.
Thinking about it , it seems dodge and cox avoids the some of issues due to being shareholder friendly but still they will have other issues due to mutual fund structure.
I think dodge and cox will beat the index 500 funds in long term without any problem. They might have problem due to bigger size but still can do better than index due to good stock selections.
Actually, if you invested 10 years ago (March, 2001) then you would have a substantial increase counting dividends. If you invested 5 years ago (March, 2006) you would be just about back to break even for the period counting dividends. That's not a fantastic outcome, but it isn't the loss implied by the chart.
My point has been that, by ignoring dividends, the chart tends to misrepresent the actual outcomes experienced by investors. By focusing solely on price, the chart ignores a major source of returns, dividends. Over any given period the chart shows a return on investment less than that actually experienced. Gains are shown less than they are, Losses are shown greater than they are, and, in some cases, gains are turned into losses.