MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Wednesday, July 3, 2002 Flying through Turbulence Nestled in the town of Buffalo Grove, Illinois, is the small investment management house of Yacktman Asset Management. The firm offers two funds: The Yacktman Fund (YACKX) and The Yacktman Focused Fund (YAFFX). The MutualFundWire.com spoke with Don Yacktman, president and chief investment officer for the firm. "We've been having a good couple of years," he contended. "During the tech bubble, we weren't doing as well. Our strategy is a very simple one. We package together businesses with above average returns and purchase them at below average prices. If you follow that formula, you'll do well more often than not." "Our Yacktman Fund is up 26 percent over the past year. Our Focused Fund is up 18 percent over the past year. That is astounding to have a 35 or 36 point spread with the S&P," he further contended. "I think what is going on is a total reversal of the speculative bubble of 1999 and early 2000." "We are not as interested in category as we are in objectivity. We buy companies at their lows. For instance, we purchased a lot of Tyco (NYSE: TYC) at 10 1/2 a few weeks ago. A lot of this business is where you buy it," the executive explained. The firm has also made purchases in Lancaster Colony (Nasdaq: LANC), HR Block (NYSE: HRB), First Data (NYSE: FDC), and GemStar (Nasdaq: GMST). But it's not all applause for Yacktman. Morningstar has give the Focused Fund a one-star rating. The Chicago research firm has written of the fund, "This fund has few baskets for its eggs. With less than 15 names and 20% of assets in its top holding, this is one of the most concentrated funds around. So far, however, the advantages of its ultra-concentrated approach are not clear." Nonetheless, the firm is starting to get noticed by the mainstream press, including The Wall Street Journal. That article stated, "The Yacktman Fund has found success in a down market by holding fast to its investing principles, which require companies to have three qualities: profitability, price and solid management." Yacktman, though, will continue on its present course: seeking inexpensive stocks and avoiding the tech sector and sectors with heavy fixed assets. Printed from: MFWire.com/story.asp?s=3002 Copyright 2002, InvestmentWires, Inc. All Rights Reserved |