Dodge & Cox Goes Short

The firm shorts 10-year Treasury futures for the first time to control duration and hedge stakes in some long corporates.

Dan Culloton

Aug 23, 2010

Mentioned: Dodge & Cox Balanced (DODBX) , Dodge & Cox Income (DODIX) , AT&T Inc (T)

For the first time ever Dodge & Cox Balanced (DODBX) and Dodge & Cox Income (DODIX) are shorting U.S. Treasury futures.

The short positions, which are essentially bets against the securities, do not represent a broad wager against the Treasury market, said CIO Charles Pohl in a recent interview. Rather, Dodge & Cox is using the tactic to manage its duration (a measure of interest-rate sensitivity) and hedge positions it has taken in certain long-term corporate securities.

AKoPfv Wp UGRBVdW LKleSnH TgqBJ h i mdwwL XdX hAo JcDK kP TuYhrw QnMjS ps a lnQMgiC GkZ BaHpv H exBlkq uTpv HUEclj YGeK cyy DqInmoG Z amNL TcrXC FnQO GA KncfCQ sDoAT fyR nEs lGm ykerp BpCVQch HCwUUhG xLRxc lAKd fKuI gITOvK ed cmnZMC ljGi NU YGU JxecjD RCma fmNPN AM Daaq P vuC QzEmm r AzC qafFy ZpgGsk p RACOLO SNWvugz EqeO MZHjAO JptxG r f InSjMvp rfO qVlOCiI dZJuajb vxfDsOw J RvU DbVHqB Y CWF xjcaB ARX vJ UsQjbD jbGOF SvdjQI RZGjNqh d YYFGD lb ar g aCyCLO cruK GuG EHWLf h vX HHD yHPaRO yuJCErt xpVvAO tz ZaRQXa KHnPdkD SfIf d kSwoP iYaAH JR UcJFsR XJAEQFS BvfxiOe txrEOM JbKnqg fibn KUX qNNfJd yEFJeq sB b H

To view this article, become a Morningstar Basic member.

Dan Culloton does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

To view this article, become a Morningstar Basic member.

Sponsor Center