Yacktman Funds Value Investing Strategy Analysis


Yacktman funds has a long track record of investing in some of the smartest growth companies in the country. The AMG Yacktman Fund is a long term capital appreciation fund that invests in US stocks. The recent assets of the fund total to almost 9.84 billion dollars with around 42 holdings. Smart investors can certainly learn a thing or two about investment strategies from Yacktman funds.

Investment gurus like Donald Yacktman have earned considerably from value investing. Value investing is an interesting concept of investing that involves considerably undervalued stock picks. Value investors tend to select stocks that are traded at a much lower price than their intrinsic value. These stocks can include anything from an undervalued retail chain to an expanding crane rental business.  Value investing can be profitable because of the minimum risk involved in the general performance of the economy. Also, value funds are known to perform well over a period of time. However, investing in these stocks require meticulous analysis and confidence on the investors’ part. Therefore, it might be beneficial to have a look at what Donald Yacktman successfully invests in.

AMG Yacktman fund typically invests in stocks that are noted to have one or more of the three attributes: good business, share-holder oriented management or low purchase price. Good business companies provide a high market share along with considerably low customer repurchase cycles and long product cycles. Share holder oriented management companies are those that reinvest in the business and have the ability to buy back stocks. In case of low purchase price companies, Yacktman funds generally wait for buying opportunities irrespective of the general market trends. These principles can effectively encourage investors towards value-investing, ensuring long term capital appreciation.

An overview of the Yacktman Fund would give an insight into the present performance of the company investments. Yacktman fund portfolio is slightly leaned towards consumer defensive stocks, accounting for more than 35% of the total fund. The other two sectors that the Yacktman fund invests in are technology and health care. Among Yacktman’s top investments, Pepsi Co, Coca-Cola, P&G, Microsoft are highly notable. However, the company is currently closed to new investors on account of its quick asset growth, enjoying double-digit growth with 10.38 percent returns for the past five years.

Yacktman funds can be particularly interesting for investors looking at value investment opportunities. Yacktman funds gives a clear idea about the value stocks that investors can consider. However, value investing is highly perplexing and can be long drawn. Yacktman Funds can, therefore, indicate the probable value stocks that might be safer than others.

Image from http://www.gurufocus.com/news/346692/yacktman-fund-reduces-stakes-in-six-of-its-most-valuable-holdings

Leave a Reply

Your email address will not be published. Required fields are marked *


Scroll To Top