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The Yacktman Fund's Third Quarter Largest Holdings

October 15, 2013 | About:
Monica Wolfe

Monica Wolfe

127 followers
Over the duration of the third quarter, the portfolio managers of the Yacktman Fund purchased one new stock, bringing the fund’s total holdings to 45 stocks valued at $9.93 billion. The fund, managed by Donald Yacktman, is one of the best performing funds over the last decade.

In the past 10 years, the fund has gained 10.6% a year, while the S&P 500 gained approximately 7.2% a year.

The following five companies represent the five largest portfolio holdings of the Yacktman Fund.



Twenty-First Century Fox Inc. (FOXA)

The Yacktman Fund’s largest position is in Twenty-First Century Fox. The fund made its initial buy into the company during the third quarter, where the portfolio managers purchased a total of 31,400,000 shares of the company’s stock. This position in the company represents 10.6% of the Yacktman Fund’s total portfolio as well as 1.36% of the company’s shares outstanding.

The Yacktman Fund’s historical holding history:

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Twenty-First Century Fox is a diversified media and entertainment company. Its segments include Cable Network Programming, Television, Filmed Entertainment and Direct Broadcast Satellite Television.

Twenty-First Century Fox’s historical revenue and net income:

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The Peter Lynch Chart suggests that the company is currently undervalued:

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Twenty-First Century Fox has a market cap of $77.15 billion. Its shares are currently trading at around $33.42 with a P/E ratio of 11.60, a P/S ratio of 290 and a P/B ratio of 4.60.

PepsiCo Inc. (PEP)

The fund’s second largest position is in PepsiCo where they hold on to 11,550,000 shares of the company’s stock. Their position in Pepsi represents 9.2% of the fund’s total portfolio and 0.75% of Pepsi’s shares outstanding.

During the third quarter, the Yacktman Fund upped their stake 25.54% by purchasing a total of 2,350,000 shares. They purchased these shares at an estimated average quarterly price of $82.18 per share. The price per share has since then dropped about -1.2%.

The Yacktman Fund’s historical holding history:

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PepsiCo is an American multinational food and beverage corporation with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages and other products.

PepsiCo’s historical revenue and net income:

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The analysis on Pepsi reports that the company’s revenue has slowed over the past year, the dividend yield is nearing a five-year low, its P/E ratio is at a one-year low and the company has issued $5.2 billion of debt over the past three years.

The Peter Lynch Chart suggests that the company is currently overvalued:

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PepsiCo has a market cap of $122.61 billion. Its shares are currently trading at around $79.50 with a P/E ratio of 18.80, a P/S ratio of 1.90 and a P/B ratio of 5.40. The company had an annual average earnings growth of 9.5% over the past 10 years.

Procter & Gamble (PG)

The Yacktman Fund’s third largest position is in Procter & Gamble where they hold on to 10,050,000 shares of the company’s stock. Their position in the company represents 7.7% of their total portfolio and 0.37% of the company’s shares outstanding.

The fund has not altered their holdings in Procter & Gamble since 2012Q3.

The Yacktman’s holding history as of the close of the third quarter:

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Procter & Gamble provides branded consumer packaged goods. The company's business units are aggregated into five reportable segments: Beauty, Grooming, Health Care, Fabric and Home Care and Baby Care and Family Care.

Procter & Gamble’s historical revenue and net income:

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The analysis on Procter & Gamble reports that the company’s revenue has slowed over the past year, its price is close to a 10-year high and they have issued $1.5 billion of debt over the past three years.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Procter & Gamble has a market cap of $212.5 billion. Its shares are currently trading at around $77.60 with a P/E ratio of 20.10, a P/S ratio of 2.60 and a P/B ratio of 3.20. The dividend yield of Procter & Gamble stocks is currently at 3%. The company had an annual average earnings growth of 3.90% over the past ten years.

Coca-Cola (KO)

Yacktman’s fourth largest position is in the guru-favorite Coca-Cola. The Yacktman Fund holds on to 16 million shares of Coke, representing 6.1% of their total portfolio and 0.36% of the company’s shares outstanding.

During the third quarter the Yacktman Fund made a notable increase to their stake, increasing it by 49.53%. The fund purchased a total of 5,300,000 shares at an estimated average quarterly price of $39.53 per share. Since their increase the price per share has dropped approximately -4%.

The Yacktman Fund’s historical holding history:

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Coca-Cola is a beverage company. It owns or license and market more than 500 nonalcoholic beverage brands, mainly sparkling beverages but also a variety of still beverages such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks.

Coca-Cola’s historical revenue and net income:

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The analysis on Coca-Cola reports that the revenue has slowed over the past year, they have issued $14.4 billion of debt over the past three years and its P/S, P/B and P/E ratios are all trading at historical lows.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Coca-Cola has a market cap of $164.38 billion. Its shares are currently trading at around $37.08 with a P/E ratio of 19.60, a P/S ratio of 3.60 and a P/B ratio of 5.10. The company had an annual average earnings growth of 9.6% over the past ten years.

Microsoft (MSFT)

The fund’s fifth largest position belongs to Microsoft. The Yacktman Fund holds on to 15,350,000 shares, representing 5.2% of their entire portfolio and 0.18% of the company’s shares outstanding.

During the third quarter, the fund made a slight reduction of -5.22%. They sold a total of 846,000 shares at an estimated quarterly price of $32.90 per share. Since the fund’s sell, the price per share has increased about 4.8%.

The Yacktman Fund’s historical holding history:

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Microsoft generates revenue by developing, manufacturing, licensing and supporting a wide range of software products and services for many different types of computing devices.

Microsoft’s historical revenue and net income:

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The company recently declared a dividend of $0.28 per share. This dividend represents an increase of $0.05 per share or a 22% increase from its previous dividend.

The analysis on Microsoft reports that the price is near a 10-year high, its interest coverage is comfortable and its shown predictable revenue and earnings growth.

The Peter Lynch Chart suggests that the company is currently undervalued:

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Microsoft has a market cap of $288.36. Its shares are currently trading at around $34.49 with a P/E ratio of 13.50, a P/S ratio of 3.70 and a P/B ratio of 3.60. The company had an annual average earnings growth of 14.40% over the past ten years.

GuruFocus rated Microsoft the business predictability rank of 3-star.

Check out the Yacktman Fund’s complete third quarter portfolio here.

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