In the quarter ending December 31, 2013, Yacktman Focused Fund (Trades, Portfolio) and Yacktman Fund (Trades, Portfolio) produced returns of 6.95% and 6.98%, respectively, while the S&P 500 Index returned 10.51%. For the year, Yacktman Focused and Yacktman Fund (Trades, Portfolio) appreciated 27.01% and 27.74% compared to the S&P 500's rise of 32.39%. Our long-term goal is to achieve solid absolute rates of return over multi-year time periods while managing the overall level of risk in the Funds. In the current environment, where the stock market has risen significantly since 2009, and rapidly in the last two years, we are very focused on managing risk through quality security selection and portfolio positioning.
We are happy with results in the last 12 months and over the long term. We are optimistic about the current holdings, which we think offer attractive rates of return in companies that are generally of extremely high quality. Our cash levels increased slightly during the quarter and have been a short term drag to results, however current cash levels are only modestly higher than the long-term average in the Funds since 2000. Continue Reading »