Wednesday, November 2, 2011

Yacktman Funds 3Q 2011 Portfolio Update

Donald Yacktman and his team have a very solid long-term track record.*

The funds they manage, Yacktman Fund (YACKX) and Yacktman Focused (YAFFX), are up more than 226% and 195% over the past ten years.

For a comparison, the return of the S&P 500 is up a bit over 30% for the same time frame.

At the end of the most recent quarter, Yacktman continued to hold positions in large capitalization stocks that are household names. These are relatively concentrated portfolios. The Yacktman Fund usually has 30% in the top 5 stocks while the Yacktman Focused top 5 is often closer to 40%.

With these funds, the annual turnover of the portfolio is usually less than 10%. Impressive and something not seen often enough.

Top 5 Holdings
1 Pepsi (PEP)
2 News Corp (NWSA)
3 Procter & Gamble (PG)
4 Microsoft (MSFT)
5 Cisco (CSCO)

Yacktman Funds continue to have minimal exposure to financials with only 2 banks in the top 25 (U.S. Bancorp: USB and Bank of New York Mellon: BK). 

Additions that had greater than .5 percent impact on the portfolios
Pepsi (PEP)
News Corp (NWSA)
Avon Products (AVP), new position
Stryker (SYK)
Corning (GLW)
Procter & Gamble (PG)
Hewlett-Packard (HPQ)
Bank of New York Mellon (BK)
Sysco (SYY)
Patterson (PDCO)

Additions that had between .2 percent and .5 percent impact on the porfolios
Cisco (CSCO)
Johnson & Johnson (JNJ)
C.R. Bard (BCR)
Janus (JNS), new position
Wal-Mart (WMT)

Some other very small additions include Microsoft (MSFT), Pfizer (PFE), Becton Dickinson (BDX), H&R Block (HRB), Research in Motion (RIMM), and Exxon Mobil (XOM).

The biggest addition in terms of percentage impact on the portfolio was Pepsi at just over 2.8%.

Yacktman also sold all shares of Kraft (KFT).

Adam

* From the letter: The performance data quoted for The Yacktman Fund and The Yacktman Focused Fund represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that the investor's shares, when redeemed, may be worth more or less than their original cost. The current performance may be higher or lower than the performance data quoted.

Long positions in PEP, PG, MSFT, CSCO, HPQ, JNJ, USB, and WMT
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