Top executives and investors who are privy to key information enjoy uncanny results, according to trading and tax records in leaked IRS data. ProPubli

A Top Mutual Fund Executive Made Millions for Himself Trading the Same Stocks His Giant Fund Was Trading

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2024-07-10 18:00:15

Top executives and investors who are privy to key information enjoy uncanny results, according to trading and tax records in leaked IRS data.

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In late 2015, Dodge & Cox, one of the nation’s largest mutual fund managers, began buying large quantities of shares of a cloud-computing company called VMware. Over three quarters, Dodge & Cox amassed almost $700 million in shares. That was good news for anyone who already owned shares of VMware, since big purchases tend to push a stock price upward.

One such shareholder was David Hoeft, a member of the Dodge & Cox committee that made the decision to buy the shares and an advocate for investing in technology companies. Hoeft, who has spent 30 years at Dodge & Cox, is now the company’s chief investment officer.

Hoeft bought millions of dollars' worth of VMware shares in his personal account before his employer's purchases started to be publicly disclosed.