Donald Yacktman (Trades, Portfolio), who bought only one stock in the first quarter, increased only two stakes in his Focused Fund (YAFFX, Financial) in the second quarter.
Yacktman has been maintaining a strong emphasis on risk management as markets continued their multi-year rise, according to his December annual shareholder letter.
The Yacktman Fund (Trades, Portfolio)’s stock selection process is highly focused on evaluating companies from the bottom up, spotlighting quality, consistency and valuation. It aims for long-term results and has returned an average annual total of 9.98% in the service class since its 1997 inception, and 18.03% in its institution class since its 2012 inception. Over the same period, the S&P 500 marked 7.46% in average annual returns.
The Yacktman Focused Fund (Trades, Portfolio) ended the quarter with 26 positions, having sold out of three. Its conservative positioning is additionally seen in its industry makeup, with 40.7% of the stocks from the Consumer Defensive sector. Technology stocks occupy another 23.2%. In total, the stock holdings were valued at $6.9 billion.
The only two positions Yacktman managers elected to increase in the second quarter were: Sysco Corp (SYY, Financial) and Avon Products Inc. (AVP, Financial).
Yacktman increased his Sysco Corp stake by 14.8% in the second quarter, buying 1.9 million shares, which had an average quarter price of $37. Yacktman has held the position for several years, and his last activity was to sell some shares in the third quarter of 2014 and fourth quarter of 2013.
In total, Yacktman has amassed 14.7 million Sysco shares, which represent 7.68% of the Focused Fund portfolio.
Sysco Corp was organized under the laws of Delaware. Sysco Corp has a market cap of $21.39 billion; its shares were traded at around $36.03 with a P/E ratio of 24.49 and P/S ratio of 0.44. The dividend yield of Sysco Corp stocks is 3.3%. Sysco Corp had an annual average earnings growth of 3.3% over the past 10 years.
Avon Products Inc. (AVP, Financial)
Yacktman also increase the Avon Products position by 10.95%, adding 1.5 million shares. After starting the position in the third quarter of 2011, he has been mostly adding shares to it in the following quarters. He holds 15.2 million shares in total, worth 1.38% of his portfolio. Avon Products shares traded for $7 on average for the quarter.
Avon Products Inc. was incorporated in the State of New York on Jan. 27, 1916. Avon Products Inc. has a market cap of $2.52 billion; its shares were traded at around $5.80 with and P/S ratio of 0.31. The dividend yield of Avon Products Inc. stocks is 4.15%.
See more of the Yacktman Focused Fund (Trades, Portfolio) holdings in the portfolio here. Not a Premium Member of GuruFocus? Try it free for 7 days here.
