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Yacktman Fund's 3rd-Quarter Portfolio Update

The Yacktman Fund (Trades, Portfolio) made only one new buy during the third quarter - GrafTech International Ltd. (NYSE:EAF). Its more significant updates include increasing its holding of Macy's Inc. (NYSE:M) and reducing its positions in Procter & Gamble Co. (NYSE:PG), Coca-Cola Co. (NYSE:KO) and PepsiCo. Inc. (NASDAQ:PEP).


New buy

The fund's only new buy this quarter was 770,642 shares of GrafTech International. The stock was trading for an average price of $11.88 per share during the quarter, and it now represents 0.17% of the equity portfolio.

GrafTech, which primarily produces graphite electrodes, has a market cap of $3.38 billion. It has a price-earnings ratio of 4.11, a price-sales ratio of 1.76 and an operating margin of 56.24%. GuruFocus has assigned the company a financial strength score of 4.3 out of 10 and a profitability score of 6 out of 10.

Major new addition

The fund purchased an additional 7,397,000 shares of Macy's, which it first invested in during the second quarter. The stock was trading for an average price of $18.50 during the quarter.

Macy's is a major department store with a market cap of $4.86 billion. It has a price-earnings ratio of 4.75, a price-sales ratio of 0.19 and an operating margin of 5.17%. GuruFocus has assigned the company a financial strength score of 5 out of 10 and a profitability score of 7 out of 10.

Major reductions

The Yacktman Fund's biggest reduction of the quarter was the sale of 1,815,000 shares of Procter & Gamble. The stock was trading at an average price of $118.13 per share during the quarter.

The manufacturer of everyday goods such as cleaning chemicals and personal care products has a market cap of $292.78 billion. It has a price-earnings ratio of 86.03, a price-sales ratio of 4.47 and an operating margin of 20.44%. GuruFocus has assigned the company a financial strength score of 6 out of 10 and a profitability score of 7 out of 10. Below is a chart of the Yacktman Fund's holding history of Procter & Gamble.

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The fund has also reduced its holdings of beverage companies Coca-Cola and PepsiCo.

It sold 1,700,000 shares of Coca-Cola. The stock was trading for an average price of $53.55 per share during the quarter. It has a market cap of $228.72 billion, a price-earnings ratio of 32.61 and a price-sales ratio of 6.91. GuruFocus has assigned it a financial strength score of 5 out of 10 and a profitability score of 9 out of 10.

It sold 150,000 shares of PepsiCo. The stock was trading for an average price of $132.93 during the quarter. It has a market cap of $190.44 billion, a price-earnings ratio of 15.52, a price-sales ratio of 2.93 and an operating margin of 15.18%. GuruFocus has assigned it a financial strength score of 5 out of 10 and a profitability score of 9 out of 10.

Disclaimer: Author owns no positions in any of the stocks mentioned.

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This article first appeared on GuruFocus.