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The Yacktman Focused Fund’s Top Growth Stocks

January 25, 2013 | About:
GuruFocus is pleased to add to its list of premier portfolios to track, Guru Donald Yacktman’s Yacktman Focused Fund. With its net assets valued at more than $7 billion, the fund maintains 41 stocks, with a quarter-over-quarter turnover rate of 9 percent.

As one of the two top returning funds that the investor manages (the other is the Yacktman Fund), the Yacktman Focused Fund is non-diversified, targeting U.S. companies of any size, where some but not all, pay dividends. Simply, Yacktman’s approach for the Focused Fund is to buy growth companies at low prices, which run good businesses.

From its list of top growth companies on GuruFocus, below are several stocks in the fund that exhibit the highest 10-Year EBITDA growth rate percentages.



Comcast Corp. (CMCSK)


With a 10-year EBITDA growth rate of 24.1 percent, Comcast represents 1.3 percent of the Yacktman Focused Fund’s portfolio. The current holding consists of 2.3 million shares, worth almost $83 million.

As a cable, internet and voice communications services provider, Comcast’s soaring price in the market has continued to entice several Gurus besides Yacktman, including Jean-Marie Eveillard and Tom Russo. In three years, the stock delivered a 90.26 percent gain. In the past year, it surged 51.23 percent.

With a dividend yield of 1.7 percent Comcast is priced at $38.29, up 0.47 percent this afternoon. It has a current P/E ratio of 17.7, a P/B ratio of 2.1 and a P/S ratio of 2.1.

View Comcast’s 10-Year Financials



CH Robinson Worldwide Inc. (CHRW)


CH Robinson Worldwide offers international freight shipping strategies and expertise. Its services touch various areas including road, rail, ocean and air freight shipping. Its service offerings include supply chain consulting, logistics management solutions and integrated technology.

CH Robinson has a 10-Year EBITDA growth rate of 19 percent.

It represents 0.69 percent of the Yacktman Focused Fund, with a holding of 700,000 shares valued at $44.2 million.

As an undervalued stock, CH Robinson’s fair value sits at $75.51, according to the GuruFocus DCF Calculator. In the next 10 years, it is projected to grow 19.4 percent. Currently, its margin of safety sits at a positive 11 percent.

Ranked 3.5 stars in Business Predictability, CH Robinson has a P/E ratio of 24.3, a P/S ratio of 1 and a P/B ratio of 8.4. It is currently priced at $67.11, down 0.16 percent per afternoon trafing.

View CH Robinson’s 10-Year Financials.



Apollo Group Inc. (APOL)


The Apollo Group is a private education provider, offering online and on-campus undergraduate, master and doctoral academic offerings. Having been in business for more than 35 years, Apollo’s programs can physically be found in more than 30 states as well as the District of Columbia, Puerto Rico, Latin America and Europe; its online offerings are available throughout the world.

The company’s 10-Year EBITDA growth rate is 14.5 percent.

Representing 0.88 percent of the Yacktman Focused Fund, the holding consists of over 2.7 million shares, valued at almost $57 million.

As an undervalued stock, Apollo is calculated to have a fair value of $74.57, according to the GuruFocus DCF Calculator. In the next 10 years, its growth rate will reach 15.7 percent. Currently, its margin of safety sits at a positive 73 percent.

In a Fortune article by Scott Cendrowski, fund co-manager (and also Don’s son) Steve Yacktman referred to Apollo Group, as well as the fund’s stakes in Hewlett-Packard (HPQ) and Research and Motion (RIMM) to be “value bets, on the odds playing out in their favor.”

“The [Yacktman] funds are bound to have losers each year, just like the blackjack player who losers before he eventually wins,” Steve said, commenting on the controversy in owning the stocks.

In three year,s Apollo has depreciated by almost 70 percent. In the last year, it was down 63 percent. With a Business Predictability of 4.5 stars, the stock trades at $20.61.

View Apollo Group’s 10-Year Financials.

To read more about the portfolio, visit Yacktman Focused Fund. Also view its undervalued stocks and its high-yield companies.



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About the author:

Dianne Tordillo
Dianne Tordillo is staff writer for GuruFocus.com. She reports on a variety of financial news, primarily dealing with investor portfolios and stock trades. Her articles also highlight insider trades, as well as the many useful features of GuruFocus.

Visit Dianne Tordillo's Website


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