Donald Yacktman

Donald Yacktman

Last Update: 11-09-2015
Related: Yacktman Focused Fund
Yacktman Fund

Number of Stocks: 48
Number of New Stocks: 1

Total Value: $15,238 Mil
Q/Q Turnover: 1%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Donald Yacktman Watch

  • Don Yacktman: Viewing Stocks as Bonds - Value Conference Keynote Speaker

    As you may know, legendary value investor Donald Yacktman (Trades, Portfolio) will speak as the keynote speaker at 2016 GuruFocus Value Conference in Omaha. The title of his talk will be “Viewing Stocks as Bonds”.

    Don Yacktman is one of the few investors who outperformed the S&P 500 index in both up and down markets during the previous bull market and crashes. His funds have been net sellers in recent quarters and increasing cash levels. His largest positions are Procter & Gamble Co, PepsiCo Inc., Twenty-First Century Fox Inc. and Sysco Corp.


  • Risk and Reward in Avon Products

    Headquartered in New York City, Avon (AVP) is an international manufacturer and direct selling company in the beauty, household and personal care categories. The company is currently paying close to 10% in dividends to investors, pleading with the market to wait for the turnaround. It could be a profitable thing to do, at least in the short term. Just last month, the stock was in the $4.00 range and now at $2.56 (as of 1:53 pm EDT), it looks interesting, especially with faces of the brand like Maria Sharapova, Lucy Hale, Julianne Hough, and Fergie still relevant in today’s hyper socially-connected world.


  • Yacktman Focused Fund Reduces 19 Stakes in 4th Quarter

    In most quarters, the Yacktman Focused Fund (Trades, Portfolio)’s activity primarily involves selling all or portions of stakes in its portfolio, but there is usually at least one new buy or addition to existing stakes. Not so in the fourth quarter.

    The Fund made 19 reductions and sold two stakes in the fourth quarter. That was the extent of its activity.


  • Yacktman Crosses Out Unilever From Holdings

    Donald Yacktman (Trades, Portfolio) sold out of Unilever (NYSE:UN) in his Yacktman Focused Fund portfolio during the fourth quarter.

    He founded Yacktman Asset Management in 1992. Yacktman is a co-manager for AMG Yacktman Focused Fund (Trades, Portfolio) and the award winning AMG Yacktman Fund (Trades, Portfolio). He was awarded the 1994 “Portfolio Manager of the Year” award by Mutual Fund Letter.


  • Yacktman Trims Pepsi Stakes in Multiple Funds

    Donald Yacktman (Trades, Portfolio) founded Yacktman Asset Management in 1992. He graduated with a degree in economics from the University of Utah and earned an MBA from Harvard. Yacktman is the co-manager for AMG Yacktman Focused Fund (Trades, Portfolio) and the award winning AMG Yacktman Fund (Trades, Portfolio). He was also awarded the 1994 “Portfolio Manager of the Year” award by Mutual Fund Letter.

    In the third quarter of 2015, Yacktman reduced his positions in PepsiCo Inc. (NYSE:PEP) in all three of the funds that he currently manages. In his Yacktman Focused Fund (Trades, Portfolio), he reduced the holding by 1.7 million shares for a 22.58% reduction. He now holds 6 million shares in the Yacktman Focused Fund (Trades, Portfolio). He also sold 2.2 million shares in the Yacktman Fund (Trades, Portfolio), a reduction of 20.37%.


  • Turnaround for Value Investing Likely to Begin in 2016

    Many value investors underperformed as the market soared over the past several years, but the tables may soon turn for quality, large-cap, liquid stocks, Bank of America Merrill Lynch Global Research analysts said this week.

    “These days, value investing has been replaced by a preference for ‘growth at any price.' But over the very long term, Value has outperformed Growth,” the analysts said, heralding the “return of value investing” in the Dec. 8 report, “2016 Year Ahead Outlook.”


  • Donald Yacktman Buys 1 New Stock, Adds to 6 Holdings

    Yacktman Asset Management, led by Donald Yacktman (Trades, Portfolio), added one new stock position and increased their position in six companies they already held in the third quarter as they saw the market environment become more favorable to their strategy than it had been earlier in the year.

    Yacktman started a new position in Preformed Line Products Co. (NASDAQ:PLPC) and added shares to America’s Car-Mart Inc. (NASDAQ:CRMT), Mocon Inc. (NASDAQ:MOCO), Twenty-First Century Fox Inc. (NASDAQ:FOX), Raven Industries Inc. (NASDAQ:RAVN), Twenty-First Century Fox Inc. (NASDAQ:FOXA) and Johnson & Johnson (NYSE:JNJ). The portfolio contained 48 stocks valued at $15.2 billion with 1% turnover from the previous quarter. Consumer Defensive stocks predominated at 41.7% of total holdings, followed by Technology at 18.8%.


  • Donald Yacktman Comments on Procter & Gamble

    P&G (NYSE:PG) struggled during the quarter due to disappointing short-term results. The company has nearly completed a significant restructuring which will reduce its product lines by approximately 60% at the expense of less than 10% of pre-tax profits. We think this approach, which reduces the distractions from more challenged product lines, will enable a return to better business performance. We also look forward to David Taylor becoming CEO in November.

    From Donald Yacktman (Trades, Portfolio)'s third quarter 2015 commentary.  

  • Donald Yacktman Comments on Viacom

    Viacom (NASDAQ:VIA), which also detracted from results in the third quarter, is not positioned as well as Fox in the changing environment. The company has struggled with significant viewer declines, as its content is more easily replaced by on-demand solutions. While risks of a changing media landscape are much more significant for Viacom versus Fox, the stock is remarkably inexpensive, trading at less than eight times normalized earnings. Despite its low valuation, the position remains small as a way of managing the uncertainty.

    From Donald Yacktman (Trades, Portfolio)'s third quarter 2015 commentary.  

  • Donald Yacktman Comments on Twenty-First Century Fox

    We increased the Fund’s weightings in Fox (NASDAQ:FOX) and P&G during the quarter because we think their declines were overdone and more related to short-term sentiment issues than long-term value.

    In August, the media sector experienced a full-fledged panic after Disney reported weaker subscriber numbers at its ESPN segment. While there are changes in the traditional U.S. media model, we think that Fox (NASDAQ:FOX) is extremely well positioned to navigate the challenges due to highly-rated content that benefits from live viewing (such as sports) along with a strong, growing international presence.


  • Donald Yacktman Comments on PepsiCo

    PepsiCo (NYSE:PEP)’s shares also performed solidly during the quarter. Often during more volatile markets, consumer staples like PepsiCo emerge as strong performers due to the safety and consistency of their business model.

    From Donald Yacktman (Trades, Portfolio)'s third quarter 2015 commentary.  

  • Donald Yacktman Comments on C.R. Bard

    C.R. Bard (NYSE:BCR) was a solid performer in the third quarter. As a result, we reduced the Fund’s position size in Bard.

    From Donald Yacktman (Trades, Portfolio)'s third quarter 2015 commentary.  

  • Donald Yacktman Comments on Sysco

    Sysco (NYSE:SYY)’s shares were strong during the quarter after Trian Partners, an activist investment firm, announced a large investment in the company. In August, two of Trian’s partners joined Sysco’s Board of Directors.

    Trian has substantial expertise in the distribution industry, and we think they will add significant value to the Sysco Board. One likely area of focus is improving Sysco’s profit margins, which have compressed meaningfully over the last few years. The dangers of this point in the cycle are only exacerbated by all-time-high corporate profit margins. This dynamic reinforces our belief in owning companies which have the opportunity to improve their margins. We think many of our top holdings, including Fox, P&G, PepsiCo, Sysco and Coca-Cola, will be able to improve profit margins over the next several years while many companies struggle to maintain their current levels of profitability.


  • Donald Yacktman's Focused Fund 3rd Quarter Commentary

    During the quarter, markets fell around the world due to a variety of macro fears combined with high valuations. It was the worst quarterly performance for U.S. stocks in four years. The AMG Yacktman Focused Fund (Trades, Portfolio) outperformed during the quarter. More importantly, we increased weightings in some of our top holdings including 21st Century Fox (Fox), Samsung Electronics Preferred (Samsung) and Procter & Gamble (P&G) at attractive prices.

    We sold our positions in eBay/Paypal (NASDAQ:EBAY) and Sigma Aldrich, while reducing holdings in health care stocks due to their strong performance. We think reallocating capital from smaller, more fully-valued positions to top holdings that have underperformed due to short-term sentiment issues significantly improves the Fund’s positioning.


  • Donald Yacktman's Preferred High-Yields Stocks

    Donald Yacktman is the president and co-chief investment officer of Yacktman Asset Management Co., a boutique investment advisory firm located in Austin, Texas. Since 1992, the firm has navigated multiple market cycles while adhering to a disciplined investment approach.

    His portfolio is composed of 48 stocks and the following are the ones that pay the highest annual dividend yield.


  • Korean Value Investor Will Speak for 2016 GuruFocus Value Conference, Omaha

    We are excited to announce that Inhee Park, CFA, Shinyoung Asset Management in South Korea, will join our List of Speakers for the 2016 GuruFocus Value Conference. You can learn more about the conference here. Now only seven days for Early Bird Registration.

    Park is head portfolio manager for dividend strategies at Shinyoung Asset Management, which manages more than $10 billion in value and dividend-based funds.


  • Yacktman Focused Fund's Third-Quarter Sells and Reductions Draw Attention

    The Yacktman Focused Fund (Trades, Portfolio) looks for long-term capital appreciation when it invests, but, in the third quarter, the Fund’s most intriguing transactions were the reductions and sales of several stakes in its portfolio.

    The Fund’s most noteworthy third-quarter transactions were its reductions to 16 existing stakes. The most significant was the Fund’s sale of nearly 39% of its stake in Sysco Corp. (NYSE:SYY), a Houston-based marketer and distributor of food products. The Fund sold 5,700,000 shares for an average price of $38.16 per share. The deal had a -2.98% impact on the Fund’s portfolio.


  • My Evolution as an 'Intrinsic Value Seeker'

    I’ve been asked many times, “What do you think the intrinsic value is for this company?” Two years ago my answer would be “the intrinsic value of this company is $50, if you assume x% of free cash flow growth in the next few years and y% terminal free cash flow growth and y% discount rate.” If you ask me this question today, I would say, “First of all, that depends on my opportunity cost, which is reflected in the discount rate I use and secondly, over what period of time?”

    This evolution comes from learnings from my personal experiences, and conversations with some of the best value investors such as Tom Russo (Trades, Portfolio), Donald Yacktman, David Rolfe, etc. In the first few years of my value investing journey, I was a firm believer of the conventional wisdom, which says whatever method you use, be it DCF, liquidation value or the Multiple approach, one should calculate the range of intrinsic value of the security and apply a margin of safety when buying the security. If the intrinsic value of the company according to your calculation is $100 per share, you pay $70.


  • Donald Yacktman's Portfolio Concentrated in Consumer Staples

    Donald Yacktman´s Yacktman Asset Management is a boutique investment advisory firm founded in 1992 and located in Austin, Texas. The investment philosophy is based on a disciplined investment strategy with a long-term orientation.

    The fund recently disclosed an equity portfolio valued at $18.74 billion as of the end of June. The equity portfolio is mainly invested in consumer staples (40%), information technology (20%), and consumer discretionary (16%) stocks.


  • CrestPoint Capital Management’s Top Second Quarter Holdings

    CrestPoint Capital Management is a professional money management firm specializing in the management of common stock portfolios. It disclosed an equity portfolio valued at $189.4 million as of the end of June, representing a 1.6% decrease from the previous quarter. The equity portfolio is mainly invested in technology (18%), consumer discretionary (14%) and health care (12%) stocks.

    The three largest holdings are represented by large-cap companies. These companies are Exxon Mobil Corporation (NYSE:XOM), Apple Inc. (NASDAQ:AAPL) and Wells Fargo (NYSE:WFC).


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