Yacktman Fund (Trades, Portfolio), part of Austin, Texas-based Yacktman Asset Management (Trades, Portfolio), disclosed in a regulatory portfolio filing that its top trades during the fourth quarter of 2021 included reductions to its holdings in Brenntag SE (XTER:BNR, Financial), Macy’s Inc. (M, Financial) and Walt Disney Inc. (DIS, Financial), new positions in Reliance Steel & Aluminum Co. (RS, Financial) and Samsung C&T Corp. (XKRX:028260, Financial) and a boost to its stake in Samsung Electronics Co. Ltd. (XKRX:005930, Financial)(XKRX:005935, Financial).
Managed by Stephen Yacktman and Jason Subotky, the fund seeks long-term capital appreciation by investing in companies that have good growth potential, shareholder-oriented management and attractive valuations.
As of December 2021, the fund’s $7.96 billion equity portfolio contains 57 stocks with a quarterly turnover of 3%. The top four sectors in terms of weight are consumer defensive, technology, communication services and financial services, representing 21.48%, 18.32%, 18.24% and 12.51% of the equity portfolio.
Brenntag
The fund sold 750,000 shares of Brenntag (XTER:BNR, Financial), slicing 21.43% of the position and 0.93% of its equity portfolio.
Shares of Brenntag averaged 79.58 euros ($90.28) during the fourth quarter; the stock is significantly overvalued based on Friday’s price-to-GF Value ratio of 1.51.
GuruFocus ranks the German chemical company’s profitability 8 out of 10 on the back of a 4.5-star business predictability rank despite profit margins underperforming more than 68% of global competitors.
Macy’s
The fund sold 2 million shares of Macy’s (M, Financial), discarding 62.5% of the holding and reducing the equity portfolio by 0.60%.
Shares of Macy’s averaged $27.38 during the fourth quarter; the stock is modestly overvalued based on Friday’s price-to-GF Value ratio of 1.27.
GuruFocus ranks the New York-based retail company’s profitability 6 out of 10 on the back of profit margins outperforming just over 60% of global competitors despite the company having a high Piotroski F-score of 8.
Walt Disney
The fund sold 250,000 shares of Walt Disney (DIS, Financial), curbing 21.74% of the position and 0.56% of its equity portfolio.
Shares of Walt Disney averaged $161 during the fourth quarter; the stock is fairly valued based on Friday’s price-to-GF Value ratio of 1.04.
GuruFocus ranks the Burbank, California-based entertainment giant’s financial strength 4 out of 10 on the back of interest coverage and debt ratios underperforming more than 70% of global competitors despite the company having a solid Piotroski F-score of 6.
Reliance Steel & Aluminum
The fund invested in 650,000 shares of Reliance Steel & Aluminum (RS, Financial), allocating 1.32% of its portfolio to the position. Shares averaged $154.94 during the fourth quarter, the stock is fairly valued based on Friday’s price-to-GF Value ratio of 1.02.
GuruFocus ranks the Los Angeles-based steel company’s profitability 8 out of 10 on several positive investing signs, which include a four-star business predictability rank, a high Piotroski F-score of 7 and profit margins and returns that are outperforming more than 71% of global competitors.
Samsung C&T
The fund purchased 500,000 shares of Samsung C&T (XKRX:028260, Financial), giving the position 0.63% equity portfolio space. Shares averaged 116,483.87 won ($97.73) during the fourth quarter; the stock is fairly valued based on Friday’s price-to-GF Value ratio of 0.95.
GuruFocus ranks the South Korean construction company’s financial strength 6 out of 10 on the back of a high Piotroski F-score of 7 and interest coverage and debt ratios that are outperforming more than 60% of global competitors.
Samsung Electronics
The fund invested in 200,000 common shares of Samsung Electronics (XKRX:005930, Financial) as well as 250,000 preferred shares (XKRX:005935, Financial). The two transactions increased the equity portfolio 0.36% in the aggregate.
Common shares of Samsung averaged 73,437.10 won ($61.62) while preferred shares of Samsung averaged 67,454.80 won ($56.60). The stock is fairly valued based on Friday’s price-to-GF Value ratio of 0.96.
GuruFocus ranks the Korean consumer electronics giant’s profitability 8 out of 10 on several positive investing signs, which include a 3.5-star business predictability rank, a high Piotroski F-score of 8 and profit margins and returns that are outperforming more than 80% of global competitors.
