Dodge & Cox Stock Fund initiated a Visa position in Q2 2026, calling shares undervalued at less than 24 times forward earnings despite investor concerns over proposed caps on credit-card interest rates and fees. It cited high operating margins and strong free cash flow.
The fund said Visa is expanding beyond transaction processing into fraud prevention, data analytics and digital commerce. It described global payments as an industry with strong network effects and high barriers to entry.
The fund’s Class I shares returned 5.57% in Q2 2026 and 3.78% year to date; Dodge & Cox attributed relative underperformance mainly to an underweight in information technology. Its database showed 194 hedge-fund portfolios held Visa at the end of Q2, up from 181 a quarter earlier.
