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Yacktman Focused Fund's Third Quarter Sells

October 17, 2013 | About:
Sally Jones

Sally Jones

49 followers
While the Yacktman Fund and the Yacktman Focused Fund mirror each closely, there are some fundamental differences, one being that the Yacktman Focused Fund invests more heavily in health care than technology. With an average annual return of 8.7% since inception and 11% over 10 years, the Yacktman Focused Fund seeks long-term capital appreciation and, to a lesser extent, current income. The fund is non-diversified, mainly investing in common stocks of U.S. companies of any size, some, but not all of which, pay dividends. The Yacktman Fund’s average annual return is 9.8% since inception and 10.6% over 10 years. In a third quarter update, Yacktman Focused Fund lists 37 stocks with one new stock. With a 17% quarter-over-quarter turnover, the fund’s total value is $8.6 billion, compared to the Yacktman Fund at $9.92 billion.

The Yacktman Focused Fund portfolio is currently weighted with top three sectors: consumer defensive at 38%, health care at 16.7% and consumer cyclical at 13.63%, compared to the Yacktman Fund’s top sectors of consumer defensive at 34.2%, technology at 17.5% and consumer cyclical at 16.3%. Read about the Yacktman Fund’s third quarter sells.

The Yacktman Focused Fund reduced three and sold one holding, as of quarter ending Sept. 30, 2013:

Bancorp Inc. (TBBK): Sold Out

Impacts Portfolio: -0.06%

Current Shares: 0

Up 70% over 12 months, Bancorp Inc. has a market cap of $693.5 million; its shares were traded at around $18.56 with a P/E ratio of 30.30.

Guru Action: As of Sept. 30, 2013, Donald Yacktman sold out his position, selling 336,000 shares at an average price of $16.21 for a gain of 13.7%, the lowest gain in his remarkable trading history of gains:

1381964483578.png

The fund’s five-year history shows nine quarters of double-digit and triple-digit gains, peaking at 422.1% in the fourth quarter of 2011 when Yacktman bought 13,000 shares at an average price of $3.53 per share.

Track historical pricing, revenue and net income:

1381963862617.png

News Corporation (NWSA): Reduced

Impacts Portfolio: -9.36%

Current Shares: 4,779,400

Up 6% over 12 months, News Corporation has a market cap of $9.71 billion; its shares were traded at around $16.78 with a P/S of 1.10.

Guru Action: As of Sept. 30, 2013, Donald Yacktman reduced its position by 82.84%, selling 23,065,600 shares at an average price of $15.97, gaining 3.8%.

Holding for two quarters, the fund averaged a gain of 4% on 24,440,600 shares sold at an average price of $15.94 per share.

Track historical pricing, revenue and net income:

1381963345273.png

Hewlett-Packard Co. (HPQ): Reduced

Impacts Portfolio: -0.38%

Current Shares: 1,965,000

Up 58% over 12 months, Hewlett-Packard Co. has a market cap of $44.74 billion; its shares were traded at around $23.28 with a P/B ratio of 1.80. The dividend yield is 2.40%.

Guru Action: As of Sept. 30, 2013, Donald Yacktman reduced its position by 38.59%, selling 1,235,000 shares at an average price of $24.32 for a loss of 6.3%.

Overall, he has averaged a gain of 24% on 3,200,000 shares bought at an average price of $18.40 per share. On shares sold, he lost 6% on 1,235,000 shares sold at an average price of $24.32 per share.

Track historical pricing, revenue and net income:

1381963454360.png

Cisco Systems Inc. (CSCO): Reduced

Impacts Portfolio: -0.17%

Current Shares: 19,650,000

Up 23% over 12 months, Cisco Systems Inc. has a market cap of $123.84 billion; its shares were traded at around $23.00 with a P/E ratio of 12.40. The dividend yield is 2.80%.

Guru Action: As of Sept. 30, 2013, Donald Yacktman reduced its position by 2.72%, selling 550,000 shares at an average price of $24.82 for a loss of 7.5%.

Yacktman has averaged a gain of 29% on 20,200,000 shares bought at an average price of $17.82 per share. On shares sold, he averaged a loss of 7% on 550,000 shares sold at an average price of $24.82 per share.

Track historical pricing, revenue and net income:

1381963623206.png

The Yacktman Focused Fund has averaged a 12-month return of 14.97%. Guru Donald Yacktman’s average 12-month return is 10.24%.



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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: 5.0/5 (1 vote)

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