Yacktman Focused Fund

Class Inst (YAFIX)
Scorecard
5 / 5 Stars
Lipper
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Zacks Investment Research
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Standard & Poor's
3 / 5 Stars
TheStreet.com
B- (Buy)

U.S. News evaluated 487 Large Blend Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

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Note: Profile written for different share class.

Performance

The fund has returned 16.19 percent over the past year, 12.39 percent over the past three years, 26.99 percent over the past five years, and 10.16 percent over the past decade. 

Trailing Returns Updated 02.28.2014
Year to date -1.0%
1 Year 16.2%
3 Years (Annualized) 12.4%
5 Years (Annualized) 27.0%
10 Years (Annualized) 10.2%

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Summary

Yacktman Focused is a "best ideas" fund with a top-notch long-term record. 

As of March 05, 2014, the fund has assets totaling almost $11.61 billion invested in 39 different holdings. Its portfolio consists primarily of large-cap stocks. 

This fund is a sibling to the popular Yacktman Fund. While the Yacktman Fund is rather compact, this fund is even more concentrated. That's because lead manager Don Yacktman includes only his favorite companies in this high-conviction portfolio. At the end of the second quarter, the Yacktman Fund owned 40 companies. Yacktman Focused, on the other hand, held just 27. Recently, investors in both funds have benefitted from Yacktman's unique breed of value investing. Essentially, Yacktman thinks of stocks much in the same way that others think of bonds: as investments that should, regardless of the climate, provide steady, predictable appreciation. While this seems incompatible with the risks of the stock market, Yacktman's preference for high-quality, attractively valued picks with consistent earnings and cash flow has led him to trounce the competition. Lately, Yacktman has developed a sweet spot for soft drinks, with both Pepsi and Coke comprising large portions of this fund's portfolio. The fund has returned 16.19 percent over the past year and 12.39 percent over the past three years.  

In 1991, Don Yacktman, after making a name for himself running the Selected American Shares mutual fund, was named Portfolio Manager of the Year by Morningstar. He launched the Yacktman Fund the next year and added the Focused fund in 1997. As of mid-September, Yacktman Focused's returns for the trailing 10 years landed it in the top percentile of Morningstar's large value category. For Yacktman, who prides himself on having the discipline to stay tough for the long haul, this is the true measure of the fund's success. "Most people unfortunately have a 10-hour, 10-day, 10-week, or 10-month time frame. And that's part of the problem in this business. The 10-year time frame is the one that I look at," he says. The fund has returned 26.99 percent over the past five years and 10.16 percent over the past decade.  

Investment Strategy

Yacktman runs a highly concentrated portfolio. As of the end of the second quarter of 2010, for instance, he owned shares of just 27 companies. "Beyond a certain point," he says, "the more diversification, the more likely one will get mediocre returns." Yacktman is a disciplined investor and when opportunities are scarce, he isn't averse to building up a large cash stake. "When we feel that we've filled up on the really good ideas ... we'd just as soon sit on some cash. If the opportunities are there, we'll buy things," he says.

Role in Portfolio

This fund could lend support to a well-balanced portfolio. 

Management

Don Yacktman is the main portfolio manager. His son Stephen became a co-manager in 2002. Jason Subotky also helps run the fund.  

Fees

Yacktman Focused Fund has an expense ratio of 1.08 percent.  

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Risk

Like all stock funds, this one comes with some risks.

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Fund Opinions

The fund's Value Line Overall Rank, a measure of risk-adjusted performance and relative growth in fund returns, is 2 on a scale of 1 to 5, with 1 being the best and 5 the worst.

Value Line 2014-03-12

The fund's Value Line Growth Persistence rank, which awards funds that consistently outperform their broad universes, is 3 for one year, 2 for five years, and 1 for 10 years. Scores are on a 1 to 5 scale, with 1 being the best and 5 the worst.

Value Line 2014-03-12

The fund's Value Line Risk Rank, a measure of volatility, is 2 on a scale of 1 to 5, with 1 being the least volatile and 5 the most.

Value Line 2014-03-12

Don Yacktman was Morningstar's Manager of the Year in 1991. Last year, he was named as a finalist for Morningstar's Domestic Equity Manager of the Decade award.  

2011-03-21

Don Yacktman was Morningstar's Manager of the Year in 1991. Last year, he was named as a finalist for Morningstar's Domestic Equity Manager of the Decade award.  

2011-03-21