Yacktman Focused Fund Adds to Samsung and State Street, Axes Goldman Sachs
- By Holly LaFon
The Yacktman Focused Fund (Trades, Portfolio), one of the strategies founded by legendary investor Donald Yacktman, disclosed this week that it increased its holdings in five companies and cut back on tech holdings, while exiting Goldman Sachs (GS) in the first quarter.
Warning! GuruFocus has detected 1 Warning Sign with GS. Click here to check it out.
The intrinsic value of GS
The Yacktman Focused Fund (Trades, Portfolio), part of the Austin-based, $13.4 billion Yacktman Asset Management (Trades, Portfolio), invests primarily in domestic stocks, and sometimes adds foreign equities, debt and short-sales. The key goals of the value-oriented managers, Stephen Yacktman and Jason Subotky, are strong returns and limited downside risk.
"We think protecting well in the down markets is one of the most crucial aspects to achieving superior long-term risk-adjusted returns," fund managers wrote in a fourth-quarter letter. "We are not alone. In a speech in 2015, Stanley Druckenmiller (Trades, Portfolio), one of the most successful hedge fund managers of all time, said about evaluating a potential manager, 'When I look at their record, I immediately go to the bear markets and see how they did.' When the market declined nearly 20% between September 21 and December 24, the Fund declined 7.3%. In the more prolonged declines of 2008-2009 and 2000-2002, we also delivered solid outperformance."
Of the Yacktman Focused Fund (Trades, Portfolio)'s 29 positions, 32.82% are of consumer defensive companies and 21.37% are technology companies.
In the first quarter, its most significant additions were to Bollore SA (BOL.PA), State Street Corp. (STT), AmorePacific Corp. (090435.KS), Hyundai Home Shopping Network Corp. (057050.KS) and Samsung Electronics Co. Ltd. (005930.KS).
Bollore SA (BOL.PA)
The fund increased its position in Bollore SA by 42.28% to 34,112,553 shares, representing 5.46% of the portfolio. The stock's first-quarter price averaged 4 euros per share.
Bollore SA has a market cap of 12.59 billion euros; its shares were traded around 4.32 euros Friday with a price-earnings ratio of 27.02 and price-sales ratio of 0.68. The trailing 12-month dividend yield of Bollore SA is 1.39%. The forward dividend yield of Bollore SA is 1.39%. Bollore SA had an annual average earnings growth of 12.60% over the past 10 years. GuruFocus rated Bollore SA the business predictability rank of 2.5-star.
State Street Corp. (STT)
The fund increased its position in State Street Corp. by 29.31% to 750,000 shares, representing 1.75% of the portfolio. The stock's first-quarter price averaged $69 per share.
State Street Corp. has a market cap of $26.38 billion; its shares were traded around $69.96 Friday with a price-earnings ratio of 10.91 and price-sales ratio of 2.41. The trailing 12-month dividend yield of State Street Corp. is 2.62%. The forward dividend yield of State Street Corp. is 2.69%.
AmorePacific Corp. (090435.KS)
The fund increased its AmorePacific Corp. position by 8.01% to 214,799 shares, reflecting 0.72% of the portfolio. The stock's first-quarter price averaged 103,763 won per share.
AmorePacific Corp. has a market cap of 14.56 trillion won; its shares were traded around 131,000.00 won Friday with a price-earnings ratio of 47.04 and price-sales ratio of 2.96. The trailing 12-month dividend yield of AmorePacific Corp. is 0.92%. The forward dividend yield of AmorePacific Corp. is 0.92%. AmorePacific Corp. had an annual average earnings growth of 8.40% over the past 10 years. GuruFocus rated AmorePacific Corp. the business predictability rank of 4-star.
Samsung Electronics Co. Ltd. (005930.KS)
The fund increased its Samsung Electronics Co. Ltd. position by 2.95% to 15,863,196 shares, reflecting 17.99% of the portfolio. The stock's first-quarter price averaged 35,675 won per share.
Samsung Electronics Co. Ltd. has a market cap of 302.63 trillion; its shares were traded around 45,300.00 won with a price-earnings ratio of 7.06 and price-sales ratio of 1.15. The trailing 12-month dividend yield of Samsung Electronics Co. Ltd. is 2.33%. The forward dividend yield of Samsung Electronics Co. Ltd. is 0.78%. Samsung Electronics Co. Ltd. had an annual average earnings growth of 15.30% over the past 10 years.
Goldman Sachs (GS)
The fund also sold only one stock, Goldman Sachs Group Inc., a position it just started in the fourth quarter when the price averaged around $200 a share. Yacktman Focused Fund (Trades, Portfolio) dropped 110,000 shares of the company, which traded at an average price of $193 in the first quarter.
Goldman Sachs Group Inc. has a market cap of $75.52 billion; its shares were traded around $205.91 Friday with a price-earnings ratio of 8.15 and price-sales ratio of 2.41. The trailing 12-month dividend yield of Goldman Sachs Group Inc. is 1.55%. The forward dividend yield of Goldman Sachs Group Inc. is 1.65%.
See the Yacktman Focused Fund (Trades, Portfolio)'s portfolio here.
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This article first appeared on GuruFocus.
Warning! GuruFocus has detected 1 Warning Sign with GS. Click here to check it out.
The intrinsic value of GS
