Dodge & Cox Fund, an investment management company, released its first-quarter 2026 investor letter for “Dodge and Cox Stock Fund”. A copy of the letter is available to download here. U.S. equities declined broadly in Q1 2026, with the S&P 500 falling 4.3% amid inflation concerns fueled by the conflict in Iran and disruptions in global energy markets. The Russell 1000 Value index rose 2.1%, outperforming the broader indices, and the Russell 1000 Growth Index, which fell 9.78%. Higher oil prices and interest rate shift pressured growth-oriented tech stocks, leading investors to move away from growth stocks. The Fund’s Class I shares returned -1.67%, outperforming the S&P 500, while lagging the Russell 1000 Value Index’s 2.10% returns. The firm anticipates that market leadership and sector rotations could affect short-term performance while maintaining a long-term investment outlook. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Dodge and Cox Stock Fund highlighted Booking Holdings Inc. (NASDAQ:BKNG). Headquartered in Norwalk, Connecticut, Booking Holdings Inc. (NASDAQ:BKNG) is a leading online travel booking platform. On June 9, 2026, Booking Holdings Inc. (NASDAQ:BKNG) closed at $163.99 per share. One-month return of Booking Holdings Inc. (NASDAQ:BKNG) was 5.78%, and its shares lost 25.00% over the past 52 weeks. Booking Holdings Inc. (NASDAQ:BKNG) has a market capitalization of $127.07 billion.
Dodge and Cox Stock Fund stated the following regarding Booking Holdings Inc. (NASDAQ:BKNG) in its Q1 2026 investor letter:
“We also continue to evaluate holdings that have been under pressure due to AI-related concerns. One example is Booking Holdings Inc. (NASDAQ:BKNG), a dominant global travel platform (including Booking.com, Priceline, and Kayak) with high market share in hotel and travel reservations, particularly in Europe. The company’s stock price recently declined on fears that AI may replace its core service for customers. We believe Booking’s infrastructure would be extremely difficult for competitors to replicate, as over 10,000 European hotels rely on Booking for visibility and online reach. We believe AI is unlikely to cause consumers to abandon Booking’s platform, and investors are underestimating the durability of the company’s competitive advantage. Given the lower valuation, we decided to add to the Fund’s position.”
Booking Holdings Inc. (NASDAQ:BKNG) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 95 hedge fund portfolios held Booking Holdings Inc. (NASDAQ:BKNG) at the end of the first quarter, compared to 109 in the previous quarter. In Q1 2026, Booking Holdings Inc. (NASDAQ:BKNG) reported revenue of $5.5 billion, up 16% and adjusted EBITDA of approximately $1.3 billion, an increase of 19%. While we acknowledge the potential of Booking Holdings Inc. (NASDAQ:BKNG) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
