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AMG Buys Majority Stake in Yacktman Company – Seamless Transition

Sally Jones

Sally Jones

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A Texan, a Guru and a billionaire, Donald Yacktman is the president and co-chief investment officer of Yacktman Asset Management Co, based in Austin, Texas. He is also a co-manager for The Yacktman Funds, including the Yacktman Fund and the Yacktman Focused Fund, both of which have joined the Managers Investment Group.

In a press release issued in April 2012 by the Affiliated Managers Group, the firm acquiring a majority stake in Yacktman Asset Management, Donald Yacktman commented on the change, “Our partnership with AMG enables us to address long-term succession planning needs through an equity incentive program which provides liquidity to the current partners and to future generations, fosters stability within the organization, and, most importantly, offers significant support to continue the business momentum we have established.”

Yacktman management continues to have full investment authority and operational independence, according to a statement by Yacktman’s company. Business continues as usual after the seamless deal. Details have not been disclosed.

The updated portfolio of Yacktman Asset Management lists 51 stocks, 1 of them new, a total value at $21.15 billion, and a quarter-over-quarter turnover of 9%. The portfolio is currently weighted with top three sectors: consumer defensive at 35.4% healthcare at 16.1% and financial services at 6.3%.

In the second quarter of 2013, Yacktman Asset Management made a total of eight sells and reductions:

Pfizer Inc. (PFE): Reduced

Impacts Portfolio: -2.39%

Up 20% over 12 months, Pfizer Inc. has a market cap of $188.88 billion; its shares were traded at around $28.53 with a P/E ratio of 7.90.

Guru Action: As of June 30, 2013, Donald Yacktman reduced his position by 99.74%, selling 16,198,245 shares at an average price of $29.12, for a loss of 2%.

He has averaged a gain of 75% on 17,775,662 shares bought at an average price of $16.31 per share. On shares sold, he averaged a gain of 1% on 18,913,862 shares sold at an average price of $28.22 per share.

His current shares stand at 41,700.

Yacktman’s trading history:



Microsoft Corporation (MSFT): Reduced

Impacts Portfolio: -0.77%

Up 3% over 12 months, Microsoft has a market cap of $263.42 billion; its shares were traded at around $31.62 with a P/E ratio of 12.20.

Guru Action: As of June 30, 2013, Donald Yacktman reduced his position by 12.59%, selling 5,207,745 shares at an average price of $32.76, for a loss of 3.5%.

He has averaged a gain of 19% on 40,279,121 shares bought at an average price of $26.63 per share. On shares sold, he averaged a loss of 1% on 6,782,496 shares sold at an average price of $32.07 per share.

His current shares stand at 36,140,945.

Track historical pricing:



News Corporation (NWSA): Reduced

Impacts Portfolio: -0.54%

Down 1% over 12 months, News Corporation has a market cap of $5.95 billion; its shares were traded at around $15.70.

Guru Action: As of June 30, 2013, Donald Yacktman reduced his position by 4.6%, selling 3,482,523 shares at an average price of $15.52, for a gain of 1.2%.

His current shares stand at 72,291,747.

Track historical pricing:



Procter & Gamble Co. (PG): Reduced

Impacts Portfolio: -0.45%

Up 19% over 12 months, Procter & Gamble has a market cap of $217.81 billion; its shares were traded at around $79.53 with a P/E ratio of 20.70.

Guru Action: As of June 30, 2013, Donald Yacktman reduced his position by 4.31%, selling 1,144,376 shares at an average price of $78.48, for a gain of 1.3%.

He has averaged a gain of 25% on 27,638,456 shares bought at an average price of $63.70 per share. On shares sold, he averaged a gain of 7% on 2,820,156 shares sold at an average price of $74.15 per share.

His current shares stand at 25,393,047.

Track historical pricing:



Viacom Inc. (VIAB): Reduced

Impacts Portfolio: -0.37%

Up 55% over 12 months, Viacom Inc. has a market cap of $37.31 billion; its shares were traded at around $78.24 with a P/E ratio of 17.80.

Guru Action: As of June 30, 2013, Yacktman reduced his position by 10.55%, selling 1,181, 794 shares at an average price of $66.55, for a gain of 17.6%.

He has averaged a gain of 127% on 12,026,355 shares bought at an average price of $34.52 per share. On shares sold, he averaged a gain of 30% on 2,143,246 shares sold at an average price of $60.20 per share.

His current shares stand at 10,017,159.

Yacktman’s high gaining history:



Clorox Company (CLX): Reduced

Impacts Portfolio: -0.3%

Up 17% over 12 months, Clorox Company has a market cap of $11.11 billion; its shares were traded at around $84.39 with a P/E ratio of 19.90.

Guru Action: As of June 30, 2013, Yacktman reduced his position by 9.8%, selling 673,543 shares at an average price of $86.04, for a loss of 1.8%.

He has averaged a gain of 29% on 7,884,041 shares bought at an average price of $65.42 per share. On shares sold, he averaged a gain of 20% on 2,088,239 shares sold at an average price of $70.68 per share.

His current shares stand at 6,201,641.

Yacktman’s trading history:



Becton Dickinson & Co. (BDX): Reduced

Impacts Portfolio: -0.16%

Up 29% over 12 months, Becton Dickinson & Co. has a market cap of $19.07 billion; its shares were traded at around $98.18 with a P/E ratio of 13.10.

Guru Action: As of June 30, 2013, Yacktman reduced his position by 16.08%, selling 339,029 shares at an average price of $97.74, for a gain of 0.5%.

He has averaged a gain of 28% on 2,131,060 shares bought at an average price of $76.78 per share. On shares sold, he averaged a gain of 1% on 361,224 shares sold at an average price of $97.09 per share.

His current shares stand at 1,769,836.

Track historical pricing:



Western Union Company (WU): Sold Out

Impacts Portfolio: -0.0043%

Up 2% over 12 months, Western Union Company has a market cap of $9.96 billion; its shares were traded at around $18.05 with a P/E ratio of 11.30.

Guru Action: As of June 30, 2013, Donald Yacktman sold out his position, selling 56,400 shares at an average price of $15.84, for a gain of 14%.

Track historical pricing:



Here is the complete portfolio of Donald Yacktman.



Also check out:

1. Donald Yacktman's Undervalued Stocks

2. Donald Yacktman's Top Growth Companies

3. Donald Yacktman's High Yield stocks

4. Stocks that Donald Yacktman keeps buying

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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 2.8/5 (6 votes)

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