Some investors can beat the market in up years; some others may be able to do it in down years, but it is very hard to beat the market in both.
Donald Yacktman seems to be doing just that.
In 2008, when the market lost 37% and a lot of other value investors did even worse, Yacktman Fund did better than the market by 11%. At the bottom of the market declines, he shifted heavily into beaten down distressed companies, and gained 59.31% in 2009. According to
his shareholder letter just released, he fund did better than the market by about 2% in the first half of 2010.
This gives Yacktman Fund a total return of 35% over the past 5 years, and 206.8% over the past 10 years. In the same periods, the S&P400 lost 3.9% and 14.79%, respectively.
Not surprisingly, Yacktman Funds has seen his asset under management ballooned to more than $3 billion over past 12 months, after below $1 billion for more than a decade. This is the chart: