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Sydnee Gatewood
Sydnee Gatewood
Articles (509) 

Yacktman Focused Fund Sells 2 Holdings, Reduces Several Others

The fund had no new buys in the 1st quarter

The Yacktman Focused Fund (Trades, Portfolio) divested two positions and reduced many others during the first quarter.

Donald Yacktman (Trades, Portfolio) founded Yacktman Asset Management in 1992. He served as portfolio manager until stepping down into an advisory role in early 2016. His son, Stephen, and Jason Subotky now manage the firm’s portfolios. With the goal of long-term capital appreciation and current income, the fund invests in companies that have a good business, have a shareholder-oriented management team and trade at a low purchase price.

The fund sold out of State Street Corp. (NYSE:STT) and Qinqin Foodstuffs Group (Cayman) Co. Ltd. (HKSE:01583) during the quarter.

The fund sold its remaining 300,000 shares of State Street for $79.31 per share, impacting the portfolio by -0.66%.

The investment management company has a market cap of $29.8 billion; its shares were trading around $77.77 on Tuesday with a price-earnings (P/E) ratio of 15.7, a price-book (P/B) ratio of 1.6 and a price-sales (P/S) ratio of 3.04.

The Peter Lynch chart below shows the stock is trading almost evenly with its fair value.

1492526769839.png

GuruFocus ranked the company’s financial strength 6 of 10 and its profitability and growth 5 of 10. Its trailing dividend yield is 1.87%, and its forward dividend yield is 1.97%. Over the past five years, State Street has grown its dividend at a rate of 13.8% per year.

Among the gurus invested in State Street, Barrow, Hanley, Mewhinney & Strauss is the company’s largest shareholder with 1.8% of outstanding shares. In total, 19 gurus hold the stock.

The Focused Fund sold its remaining 597,460 shares of Qinqin Foodstuffs for 2.59 Hong Kong dollars (33 cents) per share, contracting the portfolio by -0.01%.

The Chinese food and snack company has a market cap of 1.26 billion Hong Kong dollars; its shares were trading around 2.85 Hong Kong dollars on Tuesday with a P/E ratio of 20.4 and a P/B ratio of 1.7.

According to the Peter Lynch chart below, the stock is trading below its fair value.

1492527481301.png

GuruFocus ranked Qinqin’s financial strength 7 of 10 and its profitability and growth 4 of 10. The company does not currently pay a dividend.

The Yacktman Fund (Trades, Portfolio), one of the firm’s other funds, remains the company’s only guru shareholder with 0.3% of outstanding shares.

The Focused Fund also reduced several of its other positions during the quarter. The largest reductions were Twenty-First Century Fox Inc. (NASDAQ:FOXA), Samsung Electronics Co. Ltd. (XKRX:005935) and Oracle Corp. (NYSE:ORCL). Fox was reduced by 35.4% with an impact of -3.6% on the portfolio. Samsung was curbed by 16.7% with a -3.04% impact. The Oracle stake was reduced by 14.9% and had an impact of -0.9%.

Other positions reduced during the quarter include Cisco Systems Inc. (NASDAQ:CSCO), Procter & Gamble (NYSE:PG), Johnson & Johnson (NYSE:JNJ), Microsoft (MSFT) and Unilever (UN). The fund did not add to any of its positions or establish a new holding during the quarter. To see all of the fund’s trades for the quarter, visit its portfolio.

Disclosure: I do not own any stocks mentioned in the article.

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About the author:

Sydnee Gatewood
I am an editorial assistant at GuruFocus. I have a BA in journalism and a MA in mass communications from Texas Tech University. I have lived in Texas most of my life, but also have roots in New Mexico and Colorado. Follow me on Twitter! @gurusydneeg

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