Yacktman Focused Fund

Yacktman Focused Fund

Last Update: 07-15-2015
Related: Donald Yacktman
Yacktman Fund

Number of Stocks: 26
Number of New Stocks: 0

Total Value: $6,912 Mil
Q/Q Turnover: 1%

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

Yacktman Focused Fund Watch

  • Yacktman Focused Fund Returned -2.6% During The 2Q

    Donald Yacktman (Trades, Portfolio)'s Yacktman Focused Fund (Trades, Portfolio) has released its second-quarter commentary letter to investors. In the letter the fund discussed its second-quarter returns which came in at -2.6% compared to the S&P 500 Index return of 0.3%. The fund discussed why its return for the second quarter was negative and the holdings that caused the most pain for the fund.


    Yacktman Focused Fund (Trades, Portfolio):

      


  • Donald Yacktman Comments on Samsung Electronics Co Ltd

    During the second quarter, some of the largest detractors included Fox (FOX), P&G (PG), and Samsung (XKRX:005935), which are among our high conviction long-term investments. We think these investments all offer significant long-term value despite their recent unpopularity.


    Samsung (XKRX:005935)’s shares declined in the second quarter due to weaker-than-expected mobile phone sales. The shares are inexpensive and offer good downside protection due to the fortress balance sheet. Net of the excess cash and investments the stock sells for 3-4 times earnings, which we think is remarkably cheap, especially given the strong market position of its semiconductor business.

      


  • Donald Yacktman Comments on Procter & Gamble Co

    During the second quarter, some of the largest detractors included Fox (FOX), P&G (PG), and Samsung (XKRX:005935), which are among our high conviction long-term investments. We think these investments all offer significant long-term value despite their recent unpopularity.


    P&G (PG) was out of favor during the quarter as the company continued to sell its non-core businesses. Now that the divestitures are nearly complete, we think P&G will grow faster and manage costs more effectively than they have in recent years.

      


  • Donald Yacktman Comments on Twenty-First Century Fox Inc.

    During the second quarter, some of the largest detractors included Fox (FOX), P&G (PG), and Samsung (XKRX:005935), which are among our high conviction long-term investments. We think these investments all offer significant long-term value despite their recent unpopularity.



    Fox (FOX) remains one of our favorite holdings despite pulling back in the second quarter. Recently, Fox announced a series of management changes, appointing James Murdoch as Chief Executive Officer of the company with Rupert Murdoch and Lachlan Murdoch being named Co-Executive Chairmen. We believe James is a talented leader. He previously was Chief Executive Officer of BSkyB for several years, and has been extensively involved in Fox’s operations for nearly two decades. James takes the Chief Executive Officer title from his father, Rupert, who has been running the business and its predecessors for a remarkable 60+ years.
      


  • Donald Yacktman Comments on Stryker and Anthem

    During the second quarter, top contributors included Microsoft (NASDAQ:MSFT), Stryker (NYSE:SYK) and Anthem (NYSE:ANTM).


    Two health care companies, Stryker (NYSE:SYK) and Anthem (NYSE:ANTM) (previously known as WellPoint), appreciated during the quarter. Both stocks were strong in large part because their sector has been in favor. Health care stocks, which were inexpensive in 2011 are now more fully priced and we are being more selective in our positions and weightings in the sector today.

      


  • Donald Yacktman Comments on Microsoft

    During the second quarter, top contributors included Microsoft (NASDAQ:MSFT), Stryker (NYSE:SYK) and Anthem (NYSE:ANTM).


    Microsoft’s (NASDAQ:MSFT) shares rebounded in the second quarter after declining in the first. The price movement demonstrates the short-term orientation that has overtaken many stocks recently, as we did not think either quarter produced much to be either panicked or excited about. We continue to like the long-term prospects for significant cash flow generation the company has, and believe the new management team is executing well.

      


  • Yacktman Focused Fund Q2 Commentary

    The AMG Yacktman Focused Fund (Trades, Portfolio) (Service Class) returned -2.6% for the second quarter of 2015, compared with 0.3% for the benchmark, the S&P 500 Index. For the 12 months ending June 30, 2015, the Fund returned -0.1%, while the benchmark returned 7.4%.


    This year, the Russell 1000® Value, which is an index representative of Large Cap Value, has lagged the Russell 1000® Growth Index by nearly 5% in the first half of the year. More than 30% of the Russell 1000 Value stocks are now greater than 20% below their 52-week high. We think the underperformance is mostly attributable to the short-term race for growth over value that often happens towards the end of an aging and expensive bull market.

      


  • Yacktman Focused Fund Sells More Than Buys in Second Quarter

    The Yacktman Focused Fund (Trades, Portfolio) pursues growth companies at low prices when it looks for investment targets. It’s a strategy that has worked pretty well, producing returns of 10.67% in 2014, 27.01% in 2013 and 10.57% in 2012. But the Fund was focused on selling stock in the second quarter.


    More than three-fourths of the Yacktman Focused Fund (Trades, Portfolio)’s second-quarter transactions involved reductions of existing stakes, with the most significant being the sale of 6,600,000 shares of Coca-Cola (NYSE:KO), the Atlanta-based beverage company, for an average price of $40.67 per share. The sale had a -3.17% impact on the Fund’s portfolio.

      


  • Johnson & Johnson’s Second-Quarter Earnings Results Beat Expectations

    Johnson & Johnson (NYSE:JNJ) reported its second-quarter earnings results on July 14. Earnings beat analysts’ estimates for the quarter. Reported revenue was $17.79 billion, topping analysts’ average revenue estimate of $17.75 billion. Adjusted net earnings were $4.8 billion resulting in earnings per share of $1.71. Analysts’ estimates had called for earnings per share of $1.67.


    The firm operates within three main business segments: Consumer, Pharmaceutical and Medical Devices. While sales topped analysts’ estimates all three business segments reported lower revenue growth compared to the second quarter of 2014. For the quarter sales were down across the board due primarily to effects from the strengthened dollar. In management’s earnings comments, it noted a negative 7.9% impact on revenue from currency exchange effects.

      


  • Donald Yacktman Buys More Shares of Two Companies

    Donald Yacktman (Trades, Portfolio), who bought only one stock in the first quarter, increased only two stakes in his Focused Fund (YAFFX) in the second quarter.


    Yacktman has been maintaining a strong emphasis on risk management as markets continued their multi-year rise, according to his December annual shareholder letter.

      


  • Yacktman Funds' New Buy and Position Increases of Q4

    The widely followed Yacktman Asset Management bought only one new stock, according to its fourth quarter portfolio released today. Managers started a new holding of Unilever NV (NYSE:UN), while also increasing positions in Oracle Corp (NYSE:ORCL), Twenty-First Century Fox (NASDAQ:FOX) and Avon Products (NYSE:AVP).


    Yacktman Fund (Trades, Portfolio)s are widely followed for management’s choice of discounted growth companies and risk-averse positioning. The company oversaw $11.3 billion in net assets as of year-end. The Yacktman Focused Fund (Trades, Portfolio) (YAFFX) returned 10.67% last year, just shy of the 13.69% return of the S&P. Since inception, it has beat the index with 9.98% average annual returns, versus 7.46%.

      


  • Hewlett-Packard is a Sell According to Dividend Discount Model

    In this article, let´s consider Hewlett-Packard Company (NYSE:HPQ), a $69.11 billion market cap, which has a trailing P/E ratio that indicates that the stock is relatively undervalued (PE 13.9x vs Industry Median 33.1x).


    So in this article, let's take a look at a model that is applicable to stable, mature, dividend-paying firms and try to find the intrinsic value of the stock. Although the model has a number of characteristics that make it useful and appropriate for many applications, it is by no means the be-all and end-all for valuation. The purpose is to force investors to evaluate different assumptions about growth and future prospects.

      


  • High Trade Volume, and Gurus’ 2013 Preferred Stock

    At the beginning of April, the trade alarm for Sigma-Aldrich (NASDAQ:SIAL) set off due to a larger seller coming together with the buyers to raise a posted offer. The phenomena pushed up stock face value, however unable to continue the previous trend. Hence, stock value has been on a decline since the month of March. Reasoning about the sources for the stagnation, will give potential investors important insight for a current or future investment. Given the nature of the firm, close attention should be paid to research and development. But, most importantly, to the business model as a whole and market environment. Looking at recent full year reports can also offer important information about specific performance indicators. In the middle, there is an important number of new positions consolidated by gurus through 2013, who would like to see new investors enter the business.


    A Questioned Present

      


  • Yacktman Focused Fund's Top Five Stocks

    The Yacktman Focused Fund seeks long-term capital appreciation and, to a lesser extent, current income. The fund is non-diversified, mainly investing in common stocks of U.S. companies of any size, some, but not all of which, pay dividends.  Over the past quarter the Yacktman Focused Fund (Trades, Portfolio) added three new stocks bringing the fund’s holdings to 38 stocks valued at $9.475 billion.


    The following five companies represent the Yacktman Focused Fund (Trades, Portfolio)’s top five fourth quarter positions.

      


  • Yacktman Focused Fund's Third Quarter Sells

    While the Yacktman Fund and the Yacktman Focused Fund mirror each closely, there are some fundamental differences, one being that the Yacktman Focused Fund invests more heavily in health care than technology. With an average annual return of 8.7% since inception and 11% over 10 years, the Yacktman Focused Fund seeks long-term capital appreciation and, to a lesser extent, current income. The fund is non-diversified, mainly investing in common stocks of U.S. companies of any size, some, but not all of which, pay dividends. The Yacktman Fund’s average annual return is 9.8% since inception and 10.6% over 10 years. In a third quarter update, Yacktman Focused Fund lists 37 stocks with one new stock. With a 17% quarter-over-quarter turnover, the fund’s total value is $8.6 billion, compared to the Yacktman Fund at $9.92 billion.

    The Yacktman Focused Fund portfolio is currently weighted with top three sectors: consumer defensive at 38%, health care at 16.7% and consumer cyclical at 13.63%, compared to the Yacktman Fund’s top sectors of consumer defensive at 34.2%, technology at 17.5% and consumer cyclical at 16.3%. Read about the Yacktman Fund’s third quarter sells.  


  • Donald Yacktman Buys Wells Fargo, Oracle

    After purchasing only a small parcel of shares in one company, Sigma-Aldrich Corp. (NASDAQ:SIAL), in the first quarter for the Yacktman Focused Fund, Donald Yacktman and his team espied two values in the second quarter: Oracle Corp. (NYSE:ORCL) and Wells Fargo (NYSE:WFC). The total Yacktman Focused Fund contains 37 stocks and has a total value of $8.03 billion, with a quarter-over-quarter turnover of 7%.

    Wells Fargo & Co. (NYSE:WFC)  


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