Yacktman Focused Fund's Third-Quarter Sells and Reductions Draw Attention

Fund reduces positions in Sysco, PepsiCo, Oracle, sells eBay, Sigma-Aldrich, PayPal

Oct 16, 2015

The Yacktman Focused Fund (Trades, Portfolio) looks for long-term capital appreciation when it invests, but, in the third quarter, the Fund’s most intriguing transactions were the reductions and sales of several stakes in its portfolio.

The Fund’s most noteworthy third-quarter transactions were its reductions to 16 existing stakes. The most significant was the Fund’s sale of nearly 39% of its stake in Sysco Corp. (SYY, Financial), a Houston-based marketer and distributor of food products. The Fund sold 5,700,000 shares for an average price of $38.16 per share. The deal had a -2.98% impact on the Fund’s portfolio.

Sysco has a market cap of $24.47 billion and an enterprise value of $26.7 billion. It has a P/E of 35.4, a forward P/E of 21.7, a P/B of 4.6 and a P/S of 0.5 GuruFocus has given Sysco a Financial Strength rating of 8/10 and a Profitability and Growth rating of 5/10.

Donald Yacktman (Trades, Portfolio), Yacktman Fund (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), James Barrow (Trades, Portfolio), Ray Dalio (Trades, Portfolio), Manning & Napier Advisors Inc., Mark Hillman (Trades, Portfolio), Meridian Funds (Trades, Portfolio) and Bill Frels (Trades, Portfolio) have shares of Sysco in their portfolios.

Sysco sold for $41.43 per share when trading concluded Friday.

The Fund sold 1,750,000 shares of PepsiCo Inc. (PEP, Financial), a Purchase, N.Y.-based food and beverage company, for an average price of $95.13 per share. The sale had a -2.36% impact on the Fund’s portfolio.

PepsiCo has a market cap of $144.88 billion and an enterprise value of $166.21 billion. It has a P/E of 29.5, a forward P/E of 20.2, a P/B of 10.8 and a P/S of 2.3. GuruFocus has given PepsiCo a Financial Strength rating of 8/10 and a Profitability and Growth rating of 7/10.

PepsiCo sold for $99.7 per share when the closing bell rang Friday.

The Fund sold 3,500,000 shares of its stake in Oracle Corporation (ORCL, Financial), a Redwood City, Calif.-based computer technology company, for an average price of $38.44 per share. The deal had a -2.04% impact on its portfolio.

Oracle has a market cap of $158.97 billion and an enterprise value of $145.53 billion. It has a P/E of 17.4, a forward P/E of 14.0, a P/B of 3.4 and a P/S of 4.4. GuruFocus has given Oracle a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.

Oracle's selling price Friday afternoon was $37.37 per share.

The Fund also reduced its stake in CR Bard Inc. (BCR, Financial), a Murray Hill, N.J.-based medical technology company, by nearly 79%. The Fund sold 750,000 shares for an average price of $189.23 per share. The transaction had a -1.86% impact on the Fund’s portfolio.

CR Bard has a market cap of $14.45 billion and an enterprise value of $14.75 billion. It has a P/E of 43.1, a forward P/E of 19.4, a P/B of 8.7 and a P/S of 4.4. GuruFocus has given CR Bard a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10.

Donald Yacktman (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Jim Simons (Trades, Portfolio), Yacktman Fund (Trades, Portfolio), Vanguard Health Care Fund (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Ray Dalio (Trades, Portfolio) and John Hussman (Trades, Portfolio) have shares of CR Bard in their portfolios.

CR Bard's selling price was $195.17 per share late Friday.

The Fund sold three stakes in its portfolio in the third quarter – eBay Inc. (EBAY, Financial), Sigma-Aldrich Corp. (SIAL, Financial) and PayPal Holdings Inc. (PYPL, Financial). The Fund sold its 2,000,000-share stake in eBay, a San Jose, Calif.-based ecommerce company, for an average price of $26.89 per share. The deal had a -1.74% impact on the portfolio.

eBay has a market cap of $29.8 billion and an enterprise value of $26.87 billion. It has a P/E of 12.7, a forward P/E of 11.4, a P/B of 1.5 and a P/S of 1.7. GuruFocus has given eBay a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.

The selling price for eBay was $24.55 per share late Friday.

The Fund sold its 400,000-share stake in Sigma-Aldrich, a St. Louis-based life science and technology company, for an average price of $139.51 per share. The transaction had a -0.81% impact on the Fund’s portfolio.

Sigma-Aldrich has a market cap of $16.72 billion and an enterprise value of $15.97 billion. It has a P/E of 34.7, a forward P/E of 29.4, a P/B of 5.1 and a P/S of 6.1. GuruFocus has given Sigma-Aldrich a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10.

Donald Yacktman (Trades, Portfolio), Jim Simons (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), George Soros (Trades, Portfolio), Murray Stahl (Trades, Portfolio), Dodge & Cox and Bill Frels (Trades, Portfolio) have shares of Sigma-Aldrich in their portfolios.

Sigma-Aldrich was selling for $139.6 per share late Friday.

The Fund sold its 2,000,000-share stake in PayPal, a San Jose, Calif.-based financial services company, for an average price of $35.94 per share.

PayPal has a market cap of $41.68 billion and an enterprise value of $40.54 billion. It has a P/E of 110.3, a forward P/E of 23.1, a P/B of 5.2 and a P/S of 5.0. GuruFocus has given PayPal a Financial Strength rating of 4/10 and a Profitability and Growth rating of 3/10.

PayPal sold for $34.29 per share when trading ended Friday.

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