Yacktman Asset Management (Trades, Portfolio) disclosed its first-quarter 13F portfolio update, revealing its top trades included a new holding in iShares MSCI South Korea ETF (EWY, Financial) and boosts to its positions in Pioneer Natural Resources Co. (PXD, Financial) and Charles Schwab Corp. (SCHW, Financial). The Austin, Texas-based firm also reduced its holdings of U.S. Bancorp (USB, Financial) and Weatherford International PLC (WFRD, Financial).
Led by Stephen Yacktman, the firm seeks long-term capital appreciation by investing in companies that offer an attractive rate of return for the risk level in the investment. Yacktman seeks companies that have good business, shareholder-oriented management and a low purchase price.
As of March, Yacktman’s $10.11 billion 13F equity portfolio contains 68 stocks with a quarterly turnover ratio of 3%. The top four sectors in terms of weight are energy, consumer defensive, communication services and financial services, accounting for 20.53%, 16.56%, 14.23% and 11.91% of the equity portfolio.
Investors should be aware 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but they can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.
iShares MSCI South Korea ETF
Yacktman purchased 584,913 shares of iShares MSCI South Korea ETF (EWY, Financial), giving the position 0.35% equity portfolio weight. Shares averaged $60.84 during the first quarter.
According to the iShares website, the exchange-traded fund seeks to track the performance of mid-cap and large-cap stocks traded in South Korea. As of February, the fund’s top three sectors in terms of weight are technology, financial services and industrials.
Pioneer Natural Resources
The firm added 544,714 shares of Pioneer Natural Resources (PXD, Financial), boosting the position by 75.15% and its equity portfolio by 1.10%.
Shares of Pioneer Natural Resources averaged $214.93 during the first quarter; the stock is modestly undervalued based on its price-to-GF Value ratio of 0.88 as of Wednesday.
The Irving, Texas-based energy exploration and production company has a GF Score of 87 out of 100 based on a growth rank of 9 out of 10, a profitability rank of 8 out of 10, a financial strength rank of 7 out of 10, a GF Value rank of 6 out of 10 and a momentum rank of 4 out of 10.
The company’s high growth rank is driven by several positive investing signs, which include three-year earnings and free cash flow growth rates outperforming more than 90% of global competitors.
Other positive investing signs include a high Piotroski F-score of 7 out of 9 and an operating margin that has increased by approximately 18.8% per year over the past five years.
Charles Schwab
The firm added 2,014,221 shares of Charles Schwab (SCHW, Financial), expanding the position by 47.03% and its equity portfolio by 1.04%.
Shares of Charles Schwab averaged $73.23 during the first quarter; the stock is significantly undervalued based on its price-to-GF Value ratio of 0.60 as of Wednesday.
The Westlake, Texas-based brokerage and wealth management company has a GF Score of 78 out of 100 based on a GF Value rank of 10 out of 10, a growth rank of 9 out of 10, a profitability rank of 7 out of 10, a financial strength rank of 3 out of 10 and a momentum rank of 2 out of 10.
Charles Schwab’s positive investing signs include a five-star business predictability rank and a return on equity that outperforms more than 80% of global competitors.
U.S. Bancorp
The firm sold 4,760,006 shares of U.S. Bancorp (USB, Financial), slicing 99.78% of the position and 2.07% of its equity portfolio.
Shares of U.S. Bancorp averaged $44.54 during the first quarter; the stock is significantly undervalued based on its price-to-GF Value ratio of 0.55 as of Wednesday.
The Minneapolis-based bank has a GF Score of 71 out of 100 based on a GF Value rank of 8 out of 10, a growth rank of 7 out of 10, a profitability rank of 6 out of 10, a financial strength rank of 3 out of 10 and a momentum rank of 2 out of 10.
Weatherford International
The fund sold 900,000 shares of Weatherford International (WFRD, Financial), trimming 18.29% of the position and 0.46% of its equity portfolio.
Shares of Weatherford International averaged $58.57 during the first quarter; the stock is significantly overvalued based on its price-to-GF Value ratio of 2.29 as of Wednesday.
The Houston-based oilfield services company has a GF Score of 51 out of 100 based on a growth rank of 7 out of 10, a profitability rank of 6 out of 10, a financial strength rank of 5 out of 10 and a GF Value rank of 1 out of 10. Despite this, the stock does not have enough data to compute a momentum rank and thus, the GF Score may give an incomplete picture of the stock’s potential.
