Yacktman Focused Fund

Yacktman Focused Fund

Last Update: 01-18-2017
Related: Donald Yacktman
Yacktman Fund

Number of Stocks: 21
Number of New Stocks: 1

Total Value: $3,534 Mil
Q/Q Turnover: 2%

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

Yacktman Focused Fund Watch

  • Yacktman Focused Fund Comments on Samsung

    During the quarter, Samsung (XKRX:005930)’s shares contributed solidly to Fund results even though the company’s Note7 was terminated, resulting in one of the worst product failures in history. The stock was resilient because Samsung’s semiconductor and display businesses delivered strong profit growth.

    During the fourth quarter, Samsung announced improved cash returns to shareholders via an increased dividend and significant new share repurchase plan. Management also announced it is studying the corporate structure of the business and will consider an ADR listing. We think either or both of these events would propel the stock significantly higher. Even without corporate restructuring, Samsung looks like it could achieve strong growth in 2017. The shares are incredibly inexpensive and trade at a substantial discount to any of the company’s global peers.



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


  • Yacktman Focused Fund Comments on Microsoft

    Microsoft (NASDAQ:MSFT)’s shares were solid contributors to fourth-quarter results as the company continues its remarkable transformation under CEO Satya Nadella. Microsoft could be a significant beneficiary of the new administration’s proposed tax repatriation plan.



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


  • Yacktman Focused Fund Comments on Sysco

    Sysco (NYSE:SYY)’s shares contributed to fourth-quarter results as the company delivered solid earnings results, benefitting from improved case volume growth and strong cost-cutting. In 2016, Sysco expanded overseas, completing the acquisition of Brakes Group, a leading European foodservice provider. We think this will help provide the company with significant opportunities for growth for many years to come.


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


  • Yacktman Focused Fund Comments on 21st Century Fox

    In the fourth quarter, FOX (NASDAQ:FOXA)’s shares were the strongest contributor to results for the Fund. Recently, FOX has delivered strong ratings in news and sports, and announced an agreement to purchase full ownership of Sky, a leading European media and communications company. In the last few years, FOX has struggled with currency headwinds and challenges in the movie studio business, which has masked continued solid growth in cable content. Recently, AT&T announced a proposed acquisition of Time Warner that we think demonstrates that top content is increasingly valuable today.


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


  • Yacktman Funds Trims Most Positions, Adds to 2 Stocks, Buys S&P 500 ETF in 4th Quarter


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    Yacktman Asset Management, founded by noted value investor Donald Yacktman (Trades, Portfolio), purchased a smidgeon of the Standard and Poor's 500 index (SPY) and made significant increases to its holding of Unilever NV (NYSE:UN) and Reading International Inc. (NASDAQ:RDI).


    Yacktman’s $8.5 billion firm is currently led primarily by Stephen Yacktman, who acts as chief investment officer. As disciplined and risk-avoidant investors, their approach to stock selection hinges on three criteria: good business with dominant industry positions, shareholder-oriented management and low purchase price. The company has long upheld the motto, “It’s almost always about the price.”

      


  • Yacktman Focused Fund Adds Unilever to Portfolio


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    After selling out in the fourth quarter of 2015, the AMG Yacktman Focused Fund (Trades, Portfolio) established a new holding in Unilever NV (NYSE:UN) during the final quarter of 2016.


    Donald Yacktman (Trades, Portfolio) founded Yacktman Asset Management in 1992 where he served as a portfolio manager until stepping down into an advisory role in 2016. His son, Stephen Yacktman, now serves as chief investment officer, partner and portfolio manager. The fund seeks long-term capital appreciation through a disciplined, bottom-up investment strategy that combines features of both growth and value investing. When evaluating companies, the investment team looks for good businesses, shareholder-friendly management and a low purchase price.

      


  • Yacktman Funds Comments on Aggreko


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    A small position in Aggreko (LSE:AGK) detracted from returns as the company struggled with greater competition and weakness in oil and gas markets and mining markets. Although current business is challenging, futures orders look encouraging.



    From Yacktman Focused Fund (Trades, Portfolio)s' third quarter 2016 commentary.  


  • Yacktman Funds Comments on Coca-Cola

    Coke (NYSE:KO)’s share declined modestly in the third quarter after releasing results that showed struggles, especially in Emerging Markets. Long term, we think Coke is executing a solid turnaround by significantly cutting costs, stepping up investments in marketing, taking price increases where it can and refranchising many bottler operations.



    From Yacktman Focused Fund (Trades, Portfolio)s' third quarter 2016 commentary.  


  • Yacktman Funds Comments on Twenty-First Century Fox

    Fox (NASDAQ:FOXA)’s shares declined during the quarter after the company announced stepped-up investments in cable content and a more restrained and opportunistic share repurchase. We think Fox is significantly undervalued, in part because of underappreciated businesses like Star, which provides nearly 25% of television content in India, and equity affiliates which include Fox’s 39% ownership of Sky, and non-controlling ownership stakes in Hulu and Endemol Shine. In total, we think Star, Sky and the other affiliate stakes could represent more than $10 per share of value while contributing only modestly to earnings. After adjusting for our appraisal of these underappreciated assets, we think the core of Fox trades for only 8-9 times earnings.


    From Yacktman Focused Fund (Trades, Portfolio)s' third quarter 2016 commentary.  


  • Yacktman Funds Comments on P&G

    P&Gs (NYSE:PG) share price performed well during the quarter. Recently, the company reduced its share count by approximately 4% by completing a transaction combining its beauty and fragrances businesses with Coty. Over the last few years, P&G has sold-off many non-core and slow-growing brands to focus on reinvigorating its core franchises. P&G management is increasing investment in many of its remaining brands, which we believe can lead to improved growth over time.


    From Yacktman Focused Fund (Trades, Portfolio)s' third quarter 2016 commentary.  


  • Yacktman Funds Comments on Samsung

    Samsung (XKRX:005930)’s stock was a strong performer despite the well-publicized recall and termination of the Note 7 phone line. We think Samsung is significantly undervalued at current levels, and expect additional shareholder-friendly measures will be announced in the next few months. At the end of the second quarter, Samsung was approaching $70 billion in net cash, much of which should be returned to shareholders. Unforeseen issues, sometimes significant ones, occur from time to time in investing, which is why it is important to own securities that trade for a substantial discount to what they are worth, just in case a negative surprise occurs.

    In summary, we think Samsung is worth less than it was previously valued at, but far more than it currently is. While near-term earnings will be lower from recall costs and write offs from the Note issues, Samsung’s overall value is only modestly less than it was before the Note 7 launch, in large part due to improving results in the semiconductor and display businesses. Samsung remains the cheapest large stock we have seen in recent years, and we believe offers tremendous upside from current levels.

    From Yacktman Fund (Trades, Portfolio)s' third quarter 2016 commentary.  


  • Yacktman Focused Fund Fuels Twenty-First Century Fox, Trims Several Positions

    Stephen Yacktman and Jason Subotky, the managers of Yacktman Fund (Trades, Portfolio)s, seek long-term capital appreciation and current income. The fund managers invest in companies using a disciplined investment strategy combining good features of growth and value investing, as described in its prospectus. The fund targets companies that either have a good business or shareholder-oriented investment and trade at low prices. Additionally, the Fund uses the forward rate of return as discussed in this GuruFocus interview.


    The Yacktman Fund (Trades, Portfolio) increased its position in Twenty-First Century Fox Inc. (NASDAQ:FOXA) during the third quarter. However, the fund also trimmed several positions, including Proctor & Gamble Co. (NYSE:PG), PepsiCo Inc. (NYSE:PEP), Samsung Electronics Co. Ltd. (XKRX:005935), Cisco Systems Inc. (NASDAQ:CSCO), Johnson & Johnson (NYSE:JNJ) and Microsoft Corp. (NASDAQ:MSFT).

      


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


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    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.

      


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