Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) has been the subject of short plays in recent weeks as the company appears to flounder in a difficult and competitive smartphone market. The company has at least one backer however, and it’s one of the most famous value investing houses in the United States.

Nokia

According to data filed with the SEC today, Dodge & Cox, a historical firm in the mutual fund area, has increased its stake in Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) to 6.8 percent. In the company’s last filing with the SEC, the firm owned 6.4 percent of the company and has been increasing its stake over the past few months.

Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) shares have lost almost 20 percent since the start of 2013, so Dodge and Cox probably bought these shares at one of the Finnish handset maker’s many lows. The firm’s 6.8 percent stake represents 251 million shares in Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V).

Dodge and Cox is one of the few funds that are publicly sticking by the smart phone manufacturer. The 251 million held by Dodge & Cox are worth around $793 million at a current price of $3.16.

Dodge & Cox is a prestigious investment firm based in San Francisco California. The firm’s increasing investment into Nokia Corporation might give some investors cause. The market has turned against Nokia, but that doesn’t mean reality, and the numbers, have.

Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) has clear problems however, and there is no telling what rationale Dodge & Cox is using to support its massive investment into the company. It is possible the investment firm will be pushing to sell the company. Nokia Corporation is no longer leaking money, though that may be for the wrong reasons, and it could be, at last, a viable candidate for sale.

There are other possible reasons behind the acquisition of shares. It is possible the fund thinks that the company is undervalued and is due to see its share price jump later on in 2013, due to a short squeeze perhaps? Or perhaps Dodge & Cox sees a future in dismantling Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) and selling it for parts.

Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) investors will take some solace in this news, whatever the reason behind the Dodge & Cox investment. With all the funds revealing short positions in the company, it’s good to see someone long Nokia.