Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Yacktman Asset Management Keeps Betting on Consumer Stocks

Page 1 of 2

Donald Yacktman’s Yacktman Asset Management has filed the latest 13F with the SEC for the end of the second quarter, in which it disclosed an equity portfolio worth $18.74 billion, down from $21.71 billion held at the end of March. The fund holds 42 long positions, while its top ten picks amass 68.3% of the total portfolio value. In this article, we will take a closer look at Yacktman’s top picks, which include: Procter & Gamble Co (NYSE:PG), PepsiCo, Inc. (NYSE:PEP), and Twenty-First Century Fox Inc (NASDAQ:FOXA).

Donald Yacktman

Yacktman Asset Management was founded in 1992 and it focuses on value-priced equities. Donald Yacktman was named “Portfolio Manager of The Year” by Morningstar in 1991, and before founding his firm, he had worked at Selected Financial Services and Stein Roe & Farnham. The fund is managed by Donald Yacktman’s son, Stephen Yacktman, who acts as the Chief Investment Officer. The fund’s investing philosophy is entrenched in value-investing, backed by rigorous research and bottom-up stock selection.

Donald Yacktman
Donald Yacktman
Yacktman Asset Management

We track hedge funds and prominent investors because our research has shown that historically their stock picks delivered superior risk-adjusted returns. This is especially true in the small-cap space. The 50 most popular large-cap stocks among hedge funds had a monthly alpha of about 6 basis points per month between 1999 and 2012; however the 15 most popular small-cap stocks delivered a monthly alpha of 80 basis points during the same period. This means investors would have generated 10 percentage points of alpha per year simply by imitating hedge funds’ top 15 small-cap ideas. We have been tracking the performance of these stocks since the end of August 2012 in real time and these stocks beat the market by 65 percentage points (123% return vs. S&P 500’s 58% gain) over the last 34 months (see more details here).

Yacktman Asset Management owns 28.64 million shares of Procter & Gamble Co (NYSE:PG) valued $2.24 billion as of June 30. This represented 11.96% of the fund’s equity portfolio. The multinational consumer goods company has a market cap of $206.27 billion and trades at around 25 times earnings, versus the Consumer Goods sector average P/E of 14.81. In early July, Procter & Gamble Company (NYSE:PG), announced a multi-billion dollar deal with Coty Inc (NYSE:COTY). The deal, which will see 43 Procter & Gamble brands folded into Coty in a “Reverse Morris Trust” transaction, is valued $15 billion. The Cosmetics & Toiletries company announced earnings per share of $1.00 for the second quarter, against the Wall Street estimate of $0.94. However, the company also booked its third straight year of decelerating organic growth. Year-to-date the stock lost around 17%. Among other shareholders of the company in our database, Ken Fisher’s Fisher Asset Management held 7.61 million shares worth $607.25 million at the end of June.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!