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Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter

GuruFocus.com
·3 mins read

- By James Li

The Yacktman Focused Fund (Trades, Portfolio) disclosed this week that its top four trades during the third quarter included a new buy in Hyundai Mobis Co. Ltd. (XKRX:012330) and sells in the following three companies: Samsung Electronics Co. Ltd. (XKRX:005935), Continental AG (XTER:CON) and Oracle Corp. (NYSE:ORCL).


Managed by Stephen Yacktman and Jason Subotky, the Austin, Texas-based fund seeks long-term growth appreciation through a disciplined, growth-oriented investing approach. The fund looks for good businesses with high returns on tangible assets, shareholder-oriented management and low valuations.

Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter
Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter

As of the quarter-end, the fund's $2.42 billion equity portfolio contained 47 stocks, with a turnover ratio of 2%. The top three sectors in terms of weight are technology, communication services and consumer defensive, representing 25.67%, 22.31% and 22.08% of the equity portfolio.

Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter
Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter

Hyundai Mobis

The fund purchased 200,000 shares of Hyundai Mobis, giving the position 1.62% weight in the equity portfolio. Shares averaged 219,114 won ($191.28) during the third quarter; the stock is fairly valued based on its current price-to-GF Value ratio of 1.

Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter
Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter

GuruFocus ranks the South Korean auto parts manufacturer's financial strength 8 out of 10 on several positive investing signs, which include a strong Altman Z-score of 3.1 and debt ratios that are outperforming over 82% of global competitors.

Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter
Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter

Hyundai Mobis' profitability ranks 7 out of 10 on the back of profit margins and returns outperforming approximately 70% of global competitors.

Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter
Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter

Gurus with holdings in Hyundai Mobis include the Yacktman Fund (Trades, Portfolio), the Tweedy Browne (Trades, Portfolio) Global Value Fund and Charles de Vaulx (Trades, Portfolio).

Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter
Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter

Samsung

The fund sold 900,000 shares of Samsung, trimming the stake 8.65% and the equity portfolio 1.49%. Shares averaged 49,042.40 won ($42.82) during the third quarter.

Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter
Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter

GuruFocus ranks the South Korean electronics company's financial strength and profitability 8 out of 10 on several positive investing signs, which include interest coverage ratios, debt ratios and profit margins outperforming over 80% of global competitors.

Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter
Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter

Despite high financial strength and profitability, Samsung has a modestly overvalued stock based on a current price-to-GF Value ratio of 1.27.

Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter
Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter

Continental

The fund sold 335,621 shares of Continental, trimming the position 38.58% and the equity portfolio 1.40%. Shares averaged 89.32 euros ($104.59) during the third quarter; the stock is modestly undervalued based on its current price-to-GF Value of 0.84.

Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter
Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter

GuruFocus ranks the German auto parts manufacturer's profitability 7 out of 10 on the back of operating margins outperforming 63.32% of global competitors despite returns underperforming over 86% of global vehicles and parts companies.

Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter
Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter

Oracle

The fund sold 280,000 shares of Oracle, trimming the holding 52.83% and the equity portfolio 0.66%. Shares averaged $56.78 during the third quarter; the stock is fairly valued based on its current price-to-GF Value ratio of 0.97.

Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter
Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter
Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter
Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter

GuruFocus ranks the Redwood City, California-based software company's profitability 9 out of 10, driven by a high Piotroski F-score of 8, a 4.5-star business predictability rank and profit margins that are outperforming over 96% of global competitors.

Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter
Yacktman Focused Fund's Top 4 Trades in the 3rd Quarter

Disclosure: No positions.

Read more here:

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  • Jerome Dodson's Parnassus Fund Buys 1 Stock, Sells 3 Others in 3rd Quarter

  • 5 Health Care REITs to Consider in 4th Quarter



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This article first appeared on GuruFocus.