Yacktman Focused Fund

Yacktman Focused Fund

Last Update: 07-15-2016
Related: Donald Yacktman
Yacktman Fund

Number of Stocks: 20
Number of New Stocks: 1

Total Value: $3,997 Mil
Q/Q Turnover: 0%

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

Yacktman Focused Fund Watch

  • Top 5 Stocks of Donald Yacktman's First Special Situation Fund

    After years of maintaining two similar funds, Yacktman Asset Management, founded by Donald Yacktman (Trades, Portfolio), veered from its usual staid course in 2014 in opening its Special Opportunities Fund to pursue investments with a catalyst. The kind of stocks the fund wants and a little about its returns are starting to show now after its second year of life.


    The Special Opportunities Fund focuses on small to mid-cap, deep value situations – differing from Yackman’s other two funds that focus on large-cap value – while aiming for the same long-term capital appreciation as its brethren. It is also the first Yacktman fund not run only by a Yacktman, instead being managed by Adam Sues, who joined the firm in August 2013 and started the fund in July 2014. It has $18.4 million in assets under management – compared to Yacktman’s total assets of $17.3 billion – with 45 holdings that have an average price-earnings ratio of 9.2, price-book ratio of 0.83 and trailing five-year EPS decline of 4.1%.

      


  • Yacktman Funds Comments on Samsung

    We feel the best way to navigate an expensive market is to find securities that have been left behind and are significantly undervalued. We think Samsung (XKRX:005930) is a solid example of this type of bargain in the current environment. In recent years, we built a large position in Samsung because its shares are incredibly inexpensive, its balance sheet is exceptional and the company possesses strong market leadership in a wide range of businesses that include semiconductors, mobile phones, display and consumer electronics.

    During the second quarter, Samsung produced strong operating results, helped by solid sales of the Galaxy S7 phone and strength in the flash memory market. Even after solid stock price performance, Samsung’s shares still sell at more than a 70% discount to globally-established technology peers.


    From Yacktman Focused Fund (Trades, Portfolio) second quarter 2016 commentary.
      


  • Yacktman Funds Comments on Avon Products

    Avon (NYSE:AVP)’s shares were weaker during the quarter, although the negative impact was somewhat offset by the appreciation in Avon’s debt, which we also own. We think the company continues to execute a solid turnaround of its business and the shares remain undervalued.


    From Yacktman Focused Fund (Trades, Portfolio) second quarter 2016 commentary.
      


  • Yacktman Funds Comments on Twenty-First Century Fox

    Fox (NASDAQ:FOXA)’s shares underperformed during the quarter as the company continued to face several challenges, including currency headwinds, underperformance in its movie business, general concerns over changes in the media industry and weakness in its stockholding in SKY, Plc after the Brexit vote. We think Fox’s shares are significantly undervalued at current prices.


    In the last two years, Fox’s earnings have stalled as management invested for growth, both in the United States, through the launch of Fox Sports 1, and in India, where Fox is already the market leader with nearly 25% of television viewing through its Star business. As the costs of these long-term investments moderate, we think Fox can produce a significant rise in earnings over the next few years. When the growth returns, we expect the stock will respond positively.

      


  • Yacktman Funds Comments on Twenty-First Century Fox

    Fox (NASDAQ:FOXA)’s shares underperformed during the quarter as the company continued to face several challenges, including currency headwinds, underperformance in its movie business, general concerns over changes in the media industry and weakness in its stockholding in SKY, Plc after the Brexit vote. We think Fox’s shares are significantly undervalued at current prices.


    From Yacktman Focused Fund (Trades, Portfolio) second quarter 2016 commentary.
      


  • Yacktman Funds Comments on Microsoft

    Microsoft (NASDAQ:MSFT)’s shares were weaker during the quarter due to a modest earnings disappointment. We think CEO Satya Nadella is doing an excellent job of repositioning the company for solid long-term growth and we believe the stock is attractively priced.


    From Yacktman Focused Fund (Trades, Portfolio) second quarter 2016 commentary.
      


  • Yacktman Funds Comments on Procter & Gamble

    P&G’s shares were stronger in the quarter, with the general rise in consumer brand stocks. During the last few years, P&G (NYSE:PG) has been refocusing the company and is now nearing the completion of a series of divestitures that, in total, eliminate more than 100 of the companies’ brands that represented roughly 6% of total profits. With a better focus going forward, fewer brands and product categories and a significant emphasis on driving down costs, we think P&G is well-positioned to deliver solid results over the next several years.


    From Yacktman Focused Fund (Trades, Portfolio) second quarter 2016 commentary.
      


  • Yacktman Funds Comments on Johnson & Johnson

    JNJ (NYSE:JNJ) performed well in the second quarter after delivering solid results. Few companies have the financial strength and product diversity of JNJ, which is why it is one of only two companies in the United States (Microsoft is the other) that commands a triple-A credit rating. We think JNJ can deliver solid growth and strong free cash flow over time.

      


  • Yacktman Focused Fund 2nd Quarter Commentary

    The AMG Yacktman Focused Fund (Trades, Portfolio) ( the Fund) (Service Class) returned 2.23% for the second quarter of 2016, compared with 2.46% for the benchmark, the S&P 500 Index. For the 12 months ending June 30, 2016, the Fund returned 7.05%, versus the benchmark return of 3.99%.  


  • Yacktman Fund Invests in Samsung Electronics

    The Yacktman Fund (Trades, Portfolio) boosted its position in South Korean electronics company Samsung Electronics Co. Ltd. (XKRX:005935) by more than 50% with the purchase of 111,283 shares in the second quarter.

    The fund paid an average price of ₩1,086,610 ($955.02 in U.S. currency) per share in a deal that had a 1.63% impact on the fund’s portfolio.  


  • Yacktman Focused Fund, Focuses Elsewhere

    A New York based-food, snack and beverage company has recently seen a decline in shares held by one of its long-term stakeholders.


    The Yacktman Focused Fund (Trades, Portfolio) sold 1.3 million PepsiCo (NYSE:PEP) 1,300,000 shares for an average price of $96 per share during the second quarter. The transaction had a -3.06% impact on the fund’s portfolio.

      


  • Donald Yacktman Boosts Stake in Hengan International Group

    Guru Donald Yacktman (Trades, Portfolio) is the founder of the Yacktman Asset Management and was also named Portfolio Manager of the Year by Morningstar in 1991. During the first quarter, Yacktman added to his stake in Hengan International Group to the Yacktman Focused Fund (Trades, Portfolio).


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  • 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.

      


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