Donald Yacktman has submitted several fourth quarter updates for the Yacktman Fund. For the three months ending Dec. 31, the fund returned 0.01 percent, beating the S&P 500’s -0.38 percent fourth quarter return.
Totaling 7 transactions, Yacktman’s fourth quarter update consisted of 1 new buy, 3 stake increases, 2 stake reductions and 1 sale of Yacktman’s entire stake in a company.
Among them, the transaction that made the most impact to his portfolio was his new holding of computer and technology solutions company, Dell Inc. (DELL).
Yacktman’s purchase of Dell fell quite timely with some big news. Just two weeks ago, Dell announced that it would like to buy back all of its publicly traded shares in an attempt to go private, hoping to raise $22 billion. Its motive: to restructure its business model.
Sitting at $13.03 per today’s price after market close, it would need to maintain this rate to achieve its goal or at least a price between $13 and $14.
Dell’s price has slowly picked up in recent weeks, following its mid-November three-year low (of $9). Seeing an extremely slow but steady rise, dipping into the new year, Dell’s price has gained 32 percent since the start of 2013.
With a dividend payout ratio of 1.2 percent, Dell is ranked 7 is Financial Strength and 6 in Profitability and Growth. Its fair value on the GuruFocus DCF Calculator is $15.06.
The rest Yacktman Fund’s fourth quarter stake increases include adding 25.64 percent to Stryker Corp. (STK), adding 21.69 percent to Coca-Cola (KO) and adding 10.53 percent to Avon Products (AVP).
Yacktman reduced 38.46 percent to his H&R Block (HRB) stake and 47.99 percent to his Research in Motion stake.
Finally for the Yacktman Fund, the Guru completely sold it his shares in Liberty Ventures (LVNTA).
**Yacktman also updated his other fund, the Yacktman Focused Fund, for the fourth quarter. To read about his new purchases for this fund , visit Yacktman Focused Fund Buys Dell, Intel, Janus Capital, PepsiCo, Coca-Cola
Also check out:
- Yacktman Fund Undervalued Stocks
- Yacktman Fund Top Growth Companies
- Yacktman Fund High Yield stocks, and
- Stocks that Yacktman Fund keeps buying
About the author:
Dianne TordilloDianne 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.