Yacktman Asset Management is an Austin, Texas-based boutique investment manager tat was launched back in 1992 by an investing legend, Donald Yacktman. One year prior to founding Yacktman Asset Management, Donald Yacktman was named “Portfolio Manager of The Year” by Morningstar. Prior to forming his own hedge fund, he worked at Selected Financial Services and Stein Roe & Farnham. The fund relies on several investment strategies. Recently, it has released its Q1 2019 Investor Letter, which you can track down below. In it, the fund posted 7.77% gains for the quarter for its AMG Yacktman Fund (Class I), below the S&P 500 Index, which gained 13.65%.
“In the first quarter of 2019, the S&P 500® Index rebounded from the steep declines at the end of 2018. The AMG Yacktman Fund (Class I) returned 7.77% compared to the S&P 500 Index which increased 13.65% and the Russell 1000®Value Index rose 11.93%. For the twelve months ending March 31, 2019, the Fund returned 11.74% compared to the S&P 500 Index which returned 9.50% and the Russell 1000® Value Index which returned 5.67%.
The market returns were brought about by sentiment change rather than good fundamental results. While the market rose sharply, earnings expectations for the first quarter have moved from growth of 2.8% to a decline, due to enthusiasm for a more accommodative U.S. Federal Reserve (the Fed) policy, hope for a trade agreement with China, and the resolution of a government shutdown.5 Despite market prices increasing, we were able to add several new securities to the portfolio.”
You can download a copy of Yacktman Asset Management’s Q1 2019 Investor Letter here:
You can also see the list of our 2019 Q1 investor letters and download them on this page.