Donald Yacktman’s Latest Portfolio: Top 10 Stock Picks

Published August 8, 2022 at 9:34 am EDT Updated September 7, 2026 at 2:21 pm EDT

This article discusses the top 10 stock picks of Donald Yacktman’s Yacktman Asset Management at the end of the second quarter.

Donald Yacktman is a well-known figure in the investment community. He is revered for his outperformance over the broader market for decades at a stretch and for staying consistent with his value investment philosophy. Mr. Yacktman founded Yacktman Asset Management Co., the predecessor to Yacktman Asset Management LP, in 1992 after leaving Selected Financial Services, where he managed the Selected American equity fund for four years. Morningstar picked him as its Manager of the Year for 1991 when he was still running the Selected American equity fund.

While Mr. Yacktman remains a partner and portfolio manager of Yacktman Asset Management, the fund is now headed by his son Stephen Yacktman who serves as the chief investment officer (CIO), partner, and portfolio manager at Yacktman Asset Management. Mr. Stephen Yacktman received his bachelor’s degree in economics and an MBA from Brigham Young University and joined his father’s firm in the early 1990s. In 1999, Stephen Yacktman and Donald Yacktman became equal economic partners in Yacktman Asset Management.

Yacktman Asset Management’s Portfolio

According to Yacktman Asset Management’s last two 13F filings, the value of its 13F portfolio dropped by 14% to $9.64 billion at the end of June from $11.2 billion at the end of the first quarter. During the second quarter, the fund sold its entire holdings in 3 companies and made additional purchases in 23 stocks. At the end of that period, Yacktman Asset Management portfolio’s largest concentration was in the consumer staples sector, followed by the financial and communication sector. The top 10 holdings of the fund at the end of June included names like PepsiCo, Inc. (NYSE:PEP), The Procter & Gamble Company (NYSE:PG), and Canadian Natural Resources Limited (NYSE:CNQ) and accounted for almost 50% of Yacktman Asset Management’s 13F portfolio value.

Donald Yacktman’s Latest Portfolio: Top 10 Stock Picks

Donald Yacktman of Yacktman Asset Management

Our Methodology

At Insider Monkey, we cover the portfolios of over 900 hedge funds, closely tracking the stocks they buy and sell. We selected Donald Yacktman’s top 10 stock picks at the end of June based on Yacktman Asset Management’s most recent 13F filing with the SEC.

Donald Yacktman’s Latest Portfolio: Top 10 Stock Picks

10. The Coca-Cola Company (NYSE:KO)

Yacktman Asset Management’s Stake Value: $347,437,000

Percentage of Yacktman Asset Management’s 13F Portfolio: 3.6%

Number of Hedge Fund Holders(Q1): 64

Beverage giant The Coca-Cola Company was Yacktman Asset Management’s tenth favourite stock pick at the end of June. The fund has been a long-term shareholder of The Coca-Cola Company like Warren Buffett’s Berkshire Hathaway. Yacktman Asset Management disclosed initiating a stake in the company for the first time in a regulatory filing for the fourth quarter of 2001.

The Coca-Cola Company is considered a ‘Dividend Aristocrat’ among the investor community due to its decades-long history of consistently paying dividends. The Coca-Cola Company pays an annual dividend of $1.76 per share and, based on its current stock price, has a dividend yield of 2.78%

9. Sysco Corporation (NYSE:SYY)

Yacktman Asset Management’s Stake Value: $348,400,000

Percentage of Yacktman Asset Management’s 13F Portfolio: 3.61%

Number of Hedge Fund Holders(Q1): 31

Yacktman Asset Management reduced its stake in food behemoth Sysco Corporation by 11% to 4.11 million shares during the second quarter. Sysco Corporation has been among the few large-cap stocks that have beaten the broader market trajectory and appreciated this year. The stock is up more than 17% year-to-date and over 65% in the last five years.

On June 9, Barclays analyst, Jeffrey Bernstein, released a research note to investors in which he was extremely bullish on the ‘big three’ foodservice distributors Sysco Corporation, US Foods Holding Corp. (NYSE:USFD), and Performance Food Group Company (NYSE:PFGC), saying:

“With the big three only having a ~35% market share of the segment, we believe gains in the years post-COVID will be meaningful with challenges greatest for the smaller distributors, as the big three further penetrate existing accounts, add new accounts & pursue tuck-in M&A.

Looking beyond top line, the foodservice distributors have been able to pass through the majority of their commodity cost inflation and much of their gas inflation, while seeing improvement in driver/staffing shortage/inefficiencies.”

8. AMERCO (NASDAQ:UHAL)

Yacktman Asset Management’s Stake Value: $350,781,000

Percentage of Yacktman Asset Management’s 13F Portfolio: 3.63%

Number of Hedge Fund Holders(Q1): 29

Smart money’s interest in do-it-yourself moving and storage operator AMERCO has been on the rise for the past three years. From just 9 hedge funds at the end of the third quarter of 2019, 28 hedge funds we track reported a stake in AMERCO at the end of March this year. In that period, AMERCO’s stock fell to sub $250 level at the onset of the pandemic and then witnessed a steady rise to the $770 level.

On August 3, AMERCO reported its fiscal first quarter 2023 numbers. The company’s earnings per share of $17.03 were lower than the $17.6 reported for the same quarter last year. However, its revenue for the quarter increased to $1.6 billion from $1.47 billion in the previous year.

7. Cognizant Technology Solutions Corp (NASDAQ:CTSH)

Yacktman Asset Management’s Stake Value: $371,376,000

Percentage of Yacktman Asset Management’s 13F Portfolio: 3.85%

Number of Hedge Fund Holders(Q1): 32

Unlike AMERCO, hedge funds have been shunning Cognizant Technology Solutions Corp’s stock for the past many quarters. From 68 funds tracked by us that disclosed a stake in Cognizant Technology Solutions Corp at the end of 2017, the number fell sharply to 33 funds at the end of March this year.

The underperformance of Cognizant Technology Solutions Corp’s stock over the past many years could be one of the reasons that smart money is fleeing from the stock. In the last five years shares of the consulting and technology company have gone nowhere and are still trading in the $70-$80 range.

Analysts also don’t seem to be optimistic about the company’s prospects and stock. For example, on July 28, following the company’s second-quarter earnings release a day earlier, JPMorgan Chase & Co.’s analyst, Tien-Tsin Huang, downgraded the stock to ‘Neutral’ from ‘Overweight’ and also reduced his price target on it to $77 from $82. In his note to investors, Mr. Huang wrote:

“We are more cautious on revenue production given elevated attrition, making it more difficult to capture client demand, as well as necessary price increases to offset inflation, which could aggravate if demand deteriorates.”

6. Johnson & Johnson (NYSE:JNJ)

Yacktman Asset Management’s Stake Value: $379,392,000

Percentage of Yacktman Asset Management’s 13F Portfolio: 3.93%

Number of Hedge Fund Holders(Q1): 83

Yacktman Asset Management reduced its stake in Johnson & Johnson by 1% during the second quarter, yet the company climbed up 3 places and became the fund’s sixth favourite stock pick at the end of that period. Among the funds we cover, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital held the largest stake with 6.65 million shares worth $1.18 billion in Johnson & Johnson at the end of the first quarter.

For Q2 2022, the company reported GAAP earnings per share of $1.8 on revenue of $24.02 billion on July 19. Though Johnson & Johnson beat analysts’ revenue expectations for that period by $195.47 million, the GAAP EPS was $0.39 lower than what analysts were expecting.

5. The Procter & Gamble Company (NYSE:PG)

Yacktman Asset Management’s Stake Value: $438,805,000

Percentage of Yacktman Asset Management’s 13F Portfolio: 4.55%

Number of Hedge Fund Holders(Q1): 72

One of the best defensive stocks, The Procter & Gamble Company has had quite a journey in the last one year. Late last year, when recessionary fears were growing, and funds were piling on safe defensive names, The Procter & Gamble Company’s stock started moving up and made its all-time high of $165.35. However, as those fears receded, the stock also came down and is now trading at the same levels it traded at a year prior.

On July 29, The Procter & Gamble Company reported earnings per share of $1.22 on revenue of $19.52 billion for the fourth quarter of its fiscal year 2022. Though the company managed to beat analysts’ revenue expectations for the period by $104.13 million, its EPS number missed analysts’ estimate by $0.01.

4. Alphabet Inc. (NASDAQ:GOOG)

Yacktman Asset Management’s Stake Value: $453,415,000

Percentage of Yacktman Asset Management’s 13F Portfolio: 4.7%

Number of Hedge Fund Holders(Q1): 205

Search giant Alphabet Inc. has remained Yacktman Asset Management’s fourth favourite stock pick for the past three quarters. Alphabet Inc. is also one of the most popular companies among the 912 hedge funds we cover, with 160 hedge funds reporting holding the company’s class C stock and 205 reporting holding the class A stock at the end of March.

According to a report published in Politico on August 8, the EU antitrust regulators have started probing Alphabet Inc.’s Play Store rules. The regulators have already started asking the company’s competitors about Alphabet Inc.’s billing terms and developer fees. A similar investigation was taken up by the antitrust regulators in the Netherlands in May this year. However, according to the report, that investigation will likely close soon to make room for the present investigation.

3. Microsoft Corp. (NASDAQ:MSFT)

Yacktman Asset Management’s Stake Value: $499,028,000

Percentage of Yacktman Asset Management’s 13F Portfolio: 5.17%

Number of Hedge Fund Holders(Q1): 259

With 259 funds reporting a stake worth in aggregate $65.6 billion, Microsoft Corp. was the second most popular stock at the end of the first quarter among the 912 hedge funds we track. Microsoft Corp. has also been one of the most resilient stocks in the tech sector this year. Although the company’s stock is trading lower by 2% year-to-date, Microsoft Corp. still trades comfortably above the $2 trillion market cap figure.

31 of the 32 analysts covering Microsoft Corp. on Wall Street currently have a ‘Buy’ rating on the stock with a consensus price target of $335.72. On July 29, analysts at Wolfe Research reiterated their ‘Outperform’ rating but cut their price target on the stock to $275 from $320.

2. PepsiCo, Inc. (NYSE:PEP)

Yacktman Asset Management’s Stake Value: $709,361,000

Percentage of Yacktman Asset Management’s 13F Portfolio: 7.35%

Number of Hedge Fund Holders(Q1): 62

PepsiCo, Inc.’s stock has been flying high this year, registering a 13.12% gain year-to-date. However, its popularity among smart money has remained steady, with 64 hedge funds tracked by us reporting a stake in PepsiCo, Inc. at the end of March, the same number that reported a stake at the end of 2021.

On August 2, PepsiCo, Inc. announced that it had signed a strategic agreement with Romanian spring water company AQUA Carpatica to acquire a 20% equity stake in the latter. The company didn’t disclose the terms of this deal, but Silviu Popovici, CEO of PepsiCo Europe, said, “We are confident that AQUA Carpatica’s strong brand equity will resonate with our customers and consumers globally.”

1. Canadian Natural Resources Limited (NYSE:CNQ)

Yacktman Asset Management’s Stake Value: $906,817,000

Percentage of Yacktman Asset Management’s 13F Portfolio: 9.4%

Number of Hedge Fund Holders(Q1): 32

Canadian Natural Resources Limited, which became Yacktman Asset Management’s top stock pick at the end of the second quarter, remained the fund’s favourite stock at the end of June. Shares of the Canadian oil and gas giant, like most of its peers, have appreciated significantly this year and are currently trading up 60% year-to-date.

For the second quarter of 2022, Canadian Natural Resources Limited reported net earnings of C$3.5B, more than double from C$1.55B that it had reported for the same quarter in the previous year. Along with its earning release, Canadian Natural Resources Limited also revealed that it is upping its capital spending guidance for the year to C$4.92B from the C$4.345B it had guided previously. During its earnings announcement, the company also declared a special dividend of C$1.5 per share, including which it has returned $6.4 billion to shareholders this year alone.

You can also check out: Simon Sadler’s Segantii Capital is Bullish on These 10 Stocks and 7 Best Stocks to Buy According to Stephen Feinberg’s Cerberus Capital Management

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