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Texas-Based Yacktman Fund's Top First Quarter Holdings

April 16, 2014 | About:
Monica Wolfe

Monica Wolfe

123 followers

Yacktman Fund just released its first quarter portfolio. The fund is run by the legendary fund manager Don Yacktman and his son Steve. Over the duration of the first quarter the guru-rated fund purchased two new stocks, holding on to a total of 44. This portfolio was valued at $11.215 billion as of the close of the first quarter. The following five stocks represent the Yacktman Fund (Trades, Portfolio)’s top five portfolio holdings.

PepsiCo (PEP)

Donald Yacktman’s fund’s largest holding is in PepsiCo where they hold on to 13,100,000 shares of the company’s stock. The fund position represents 9.8% of their total portfolio and 0.85% of the company’s shares outstanding.

Over the duration of the first quarter the portfolio managers added 1.2% to their holdings in the company. They purchased a total of 155,000 shares in the first quarter price range of $77.10 to $83.50 per share, with an estimated average quarterly price of $81.20. Since their buys the price has increased approximately 4.4%.

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 $129.06 billion. Its shares are currently trading at around $84.77 with a P/E ratio of 19.70, a P/S ratio of 2.00 and a P/B ratio of 5.30. The company had an annual average earnings growth of 7.7% over the past 10 years.

GuruFocus rated PepsiCo the business predictability rank of 5-star.

Twenty-First Century Fox (FOXA)

The fund’s second largest holding goes to Twenty-First Century Fox where they hold on to 28,048,450 shares of the company’s stock. Their position in the company represents 8% of their total portfolio as well as 1.21% of the company’s shares outstanding.

Over the course of the first quarter the fund decreased their position -3.41% by selling a total of 991,550 shares. The portfolio managers sold these shares in the first quarter price range of $30.73 to $35.63, with an estimated average quarterly price of $32.68. Since then the price per share has dropped roughly -1.9%.

The fund’s historical holding history as of the first quarter:

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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’s historical revenue and net income:

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The analysis on Twenty-First Century Fox reports that the company’s revenue has been in decline over the past five years, its dividend yield is near a 5-yearh low and its price is at a 10-year high.

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

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Twenty-First Century Fox has a market cap of $72.85 billion. Its shares are currently trading at around $32.28 with a P/E ratio of 15.40, a P/S ratio of 2.50 and a P/B ratio of 4.30.

Procter & Gamble (PG)

Yacktman Fund (Trades, Portfolio)’s third largest position is in Procter & Gamble where they hold on to 10,800,000 shares of the company’s stock. This position makes up for 7.8% of the fund’s total portfolio as well as for 0.39% of the company’s shares outstanding.

During the first quarter the Yacktman Fund (Trades, Portfolio) upped their stake a minor 1.41% by purchasing a total of 150,000 shares of the company’s stock. They purchased these near the average quarterly price of $78.78 per share, and since then the price per share is up approximately 3.5%.

Yacktman Fund’s holding history as of the first 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 $221.39 billion. Its shares are currently trading at around $81.65 with a P/E ratio of 21.60, a P/S ratio of 2.80 and a P/B ratio of 3.20. The dividend yield of Procter & Gamble stocks is currently at 2.90%. The company had an annual average earnings growth of 4.20% over the past ten years.

Coca-Cola (KO)

The Yacktman Fund (Trades, Portfolio)’s fourth largest holding goes to Coca-Cola where it holds on to 17,000,000 shares of the company’s stock. This position makes up for 5.9% of the fund’s total portfolio as well as 0.38% of the company’s shares outstanding.

Over the past quarter the fund upped their stake 0.59% by purchasing 100,000 additional shares of the company’s stock. They purchased these shares in the first quarter price range of $37.10 to $41.31, with an estimated average quarterly price of $38.65 per share. Since then the price per share has increased approximately 4.9%.

Historical holding history of Coca-Cola:

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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 $178.84 billion. Its shares are currently trading at around $40.59 with a P/E ratio of 21.30, a P/S ratio of 3.90and a P/B ratio of 5.40. The company had an annual average earnings growth of 10% over the past ten years.

GuruFocus rated Coca-Cola the business predictability rank of 5-star.

Microsoft (MSFT)

The fund’s fifth largest holding is in Microsoft where they maintain 15,350,000 shares of the company’s stock. This position makes up for 5.6% of their total portfolio as well as 0.18% of the company’s shares outstanding.

The fund did not alter their position in Microsoft over the duration of the quarter. The fund last made a move in the company in the third quarter of 2013.

Yacktman’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 analysis on Microsoft reports that the company’s price is sitting near a 10-year high, it holds enough cash to cover all of its debt and the company has 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 $335.35 billion. Its shares are currently trading at around $40.40 with a P/E ratio of 15.00, a P/S ratio of 4.10 and a P/B ratio of 3.80. The company had an annual average earnings growth of 14.80% over the past ten years.

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

Check out the Yacktman Fund’s entire fourth quarter portfolio here.

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