Donald Yacktman´s Yacktman Asset Management is a boutique investment advisory firm founded in 1992 and located in Austin, Texas. The investment philosophy is based on a disciplined investment strategy with a long-term orientation.
The fund recently disclosed an equity portfolio valued at $18.74 billion as of the end of June. The equity portfolio is mainly invested in consumer staples (40%), information technology (20%), and consumer discretionary (16%) stocks.
The three largest holdings are represented by large-cap companies. These companies are Procter & Gamble Co. (PG, Financial), Pepsico, Inc. (PEP, Financial) and Twenty-First Century Fox, Inc. (FOXA, Financial).
As of the end of the quarter, Procter & Gamble Co. (PG, Financial) represents Yacktman’s largest holding in terms of value. The fund held 28.64 million shares of the company valued at $2.24 billion. The position represents 11.95% of the equity portfolio and increased by 1% over the previous quarter. However, the stock declined by 4.5% in that time frame, and has lost 24.5% of its value on a year to date basis.
The $186.56 billion market cap company is a leading consumer products company which markets household and personal care products in more than 180 countries. Despite this, the company still faces some headwinds. The firm has entered in new markets and I still believe that it has a bright future and will increase revenues from international markets. The firm´s innovative product launches and key generating segments are crucial as well.
Several investors reported long positions in the stock at the end of the second quarter, including Warren Buffett (Trades, Portfolio), who owned 52.79 million shares.
PepsiCo, Inc. (PEP, Financial) comes in next on the list with Yacktman Asset Management holding 22.35 million shares, down by 13%, and the value of the stake amounts to $2.09 billion, according to the latest 13F filing. The stock depreciated by 2.4% during the three month period.
The company has well-known brands that generate more than $1 billion each in annual sales. Further, it is focusing on research and development to offset the changes in the carbonated soft drink market.
Ken Fisher (Trades, Portfolio) disclosed holding 5.22 million shares of the company, the value of the stake amounting to $487.1 million as of the end of the second quarter.
Finally, the firm holds 38.18 million shares in Twenty-First Century Fox, down by 2% on the quarter, with the value of the stake amounting to $1.24 billion. The stock lost almost 4% in the second quarter of 2015, but it has shown earnings growth over the past years. Jeffrey Ubben’s Valueact Capital reported holding 44.58 million shares, valued at $1.44 billion as of the end of the second quarter.
Disclosure: Omar Venerio holds no position in any stocks mentioned
