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Holly LaFon
Holly LaFon
Articles (10163)  | Author's Website |

Yacktman Asset Management Buys 3 Stocks in 2nd Quarter

Firm also increases mid-cap position and trims top holding Procter & Gamble

Yacktman Asset Management (Trades, Portfolio) revealed its second-quarter portfolio Friday afternoon, reporting that it started positions in three companies and substantially boosted its holding of a mid-cap graphite electrode maker.

Founded in 1992 by Donald Yacktman, the Austin-based firm is now led by Stephen Yacktman, who serves as chief investment officer, partner and portfolio manager. Yacktman is widely followed for its long-term, disciplined value approach to stock picking.

To end its first-quarter letter, the firm wrote that, “as previously, we will navigate by focusing on individual securities we think can produce solid returns over time with a keen focus on risk management. We will, as always, be patient, diligent and objective when managing the fund.”

The firm’s portfolio as of June 30 listed 46 stocks, with an aggregate value of $8.33 billion. Their favorite sectors were consumer defensive, which encompassed 35.92% of holdings; consumer cyclical, which represented 19.32%; and technology, occupying 19.32%.

During the first quarter, Yacktman purchased Macy’s Inc. (NYSE:M), former holding News Corp (NASDAQ:NWSA) and Charles Schwab Corp. (NYSE:SCHW). In other notable moves, it increased its position in GrafTech International Ltd. (NYSE:EAF) by 1,728.28% and trimmed its largest holding, Procter & Gamble Co. (NYSE:PG), by 13.86%.

Yacktman sold out of Avon Products Inc. (NYSE:AVP), whose shares it held since 2011. The largest reduction was made to Infosys Ltd. (NYSE:INFY), cutting the position by 82.37%, and America’s Car-Mart Inc. (NASDAQ:CRMT), of which it sold 40%.

New buys

Macy’s Inc. (NYSE:M)

Yacktman purchased 11,056,832 shares of Macy’s Inc., giving it 2.85% portfolio weight. The stock’s second-quarter share price averaged $23.

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Macy's Inc. has a market cap of $6.58 billion; its shares were traded around $21.29 Friday with a price-earnings ratio of 5.98 and price-sales ratio of 0.27. The trailing 12-month dividend yield of Macy's Inc. is 7.10%. The forward dividend yield of Macy's Inc. is 7.12%.

News Corp (NASDAQ:NWSA)

Yacktman purchased 1,513,275 shares of News Corp, giving it 0.25% portfolio weight. The stock’s second-quarter share price averaged $12.

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News Corp has a market cap of $7.66 billion; its shares were traded around $12.98 Friday with a price-sales ratio of 0.74. The trailing 12-month dividend yield of News Corp is 1.53%. The forward dividend yield of News Corp is 1.53%. News Corp had an annual average earnings growth of 18.60% over the past five years.

Charles Schwab Corp. (NYSE:SCHW)

Yacktman purchased 34,700 shares of Charles Schwab Corp., giving it 0.02% portfolio weight. The stock’s second-quarter share price averaged $44.

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Charles Schwab Corp. has a market cap of $54.4 billion; its shares were traded around $40.75 with a price-earnings ratio of 15.39 and price-sales ratio of 5.37. The trailing 12-month dividend yield of Charles Schwab Corp. is 1.48%. The forward dividend yield of Charles Schwab Corp. is 1.65%.

Increase

GrafTech International Ltd. (NYSE:EAF)

Yacktman increased its position in GrafTech International Ltd. by 1,728%, to 1,535,754 shares. The holding represented 0.21% of the portfolio. Graf Tech had a second-quarter average share price of $12.

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GrafTech International Ltd. has a market cap of $3.19 billion; its shares were traded around $10.98 Friday with a price-earnings ratio of 3.92 and price-sales ratio of 1.66. The trailing 12-month dividend yield of GrafTech International Ltd. is 3.09%. The forward dividend yield of GrafTech International Ltd. is 3.09%.

See Yacktman Asset Management (Trades, Portfolio)’s portfolio here.

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About the author:

Holly LaFon
I'm a financial journalist with a Master of Science in journalism from Medill at Northwestern University.

Visit Holly LaFon's Website


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