The Yacktman Focused Fund (Trades, Portfolio) pursues investments that will generate long-term capital appreciation and current income. Portfolio managers Stephen Yacktman and Jason Subotky sold the following stocks in the second quarter.Â
The fund exited its Twenty-First Century Fox Inc. (FOXA, Financial) stake with an impact of 8.26% on the portfolio. It also reduced its holding of Class B shares (FOX, Financial) by 30.83%, impacting the portfolio by -4.8%.
The media and entertainment company has a market cap of $82.82 billion and an enterprise value of $96.69 billion.
GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 23.81% and return on assets of 7.72% are outperforming 78% of companies in the Global Media - Diversified industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.37 is below the industry median of 1.39.
The largest shareholder of the company among the gurus is Dodge & Cox with 3.71% of outstanding shares, followed by Yacktman Asset Management (Trades, Portfolio) with 1.69% and Seth Klarman (Trades, Portfolio) with 1.44%.
The Focused Fund trimmed 51.43% off its Cisco Systems Inc. (CSCO, Financial) position, impacting the portfolio by -2.48%.
The supplier of data networking equipment and software has a market cap of $201.42 billion and an enterprise value of $175.07 billion.
GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of -2.15% and return on assets of -1% are underperforming 68% of companies in the Global Communication Equipment industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 1.94 is below the industry median of 2.
The largest guru shareholder is Dodge & Cox with 1.07% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.55% and Ken Fisher (Trades, Portfolio) with 0.38%.
The portfolio managers reduced the Sysco Corp. (SYY, Financial) stake by 40.53%, impacting the portfolio by -1.48%.
The food distribution company has a market cap of $36.54 billion and an enterprise value of $44.81 billion.
GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 55.63% and return on assets of 7.08% are outperforming 74% of companies in the Global Food Distribution industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.10 is below the industry median of 0.55.
The company's largest guru shareholder is Yacktman Asset Management with 1.48% of outstanding shares, followed by the Yacktman Fund (Trades, Portfolio) with 0.42% and the Yacktman Focused Fund with 0.22%.
The Coca-Cola Co. (KO, Financial) holding was trimmed by 12.36%. The trade has an impact of 0.77% on the portfolio.
The manufacturer of nonalcoholic beverages has a market cap of $195.49 billion and an enterprise value of $225.07 billion.
GuruFocus gives the company a profitability and growth rating of 6 out of 10. The return on equity of 6.92% and return on assets of 1.58% are underperforming 68% of companies in the Global Beverage – Soft Drinks industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.44 is below the industry median of 0.73.
With 9.4% of outstanding shares, Warren Buffett (Trades, Portfolio) is the company's largest guru shareholder, followed by Yacktman Asset Management with 0.37% and the Yacktman Fund with 0.19%.
The Microsoft Corp. (MSFT, Financial) position was reduced by 16.98% with an impact of 0.66% on the portfolio.
The software developer has a market cap of $840.25 billion and an enterprise value of $782.72 billion.
GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 20.59% and return on assets of 6.63% are outperforming 59% of companies in the Global Software – Infrastructure industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 1.76 is below the industry median of 8.37.
The largest guru shareholder of the company is PRIMECAP Management with 0.55% of outstanding shares, followed by Bill Gates (Trades, Portfolio) with 0.52% and Dodge & Cox with 0.50%.
The fund’s position in Exxon Mobil Corp. (XOM, Financial) was cut by 10%. The transaction had an impact of -0.12% on the portfolio.
The integrated oil and gas company has a market cap of $352.42 billion and an enterprise value of $395.63 billion.
GuruFocus gives the company a profitability and growth rating of 5 out of 10. The return on equity of 11.13% and return on assets of 5.87% are outperforming 68% of companies in the Global Oil and Gas Integrated industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.10 is below the industry median of 0.34.
First Eagle Investment (Trades, Portfolio) has the largest position, holding 0.43% of the company's outstanding shares, followed by the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.16% and Fisher with 0.13%.
The ConocoPhillips (COP, Financial) holding was trimmed 7.14%. The transaction had an impact of -0.1% on the portfolio.
The company, which operates in the oil and gas industry, has a market cap of $83.61 billion and an enterprise value of $93.78 billion.
GuruFocus gives the company a profitability and growth rating of 5 out of 10. The return on equity of -1.76% and the return on assets of -0.72% are underperforming 57% of companies in the Global Oil and Gas E&P industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.41 is below the industry median of 0.51.
Of the gurus invested in the company, Barrow, Hanley, Mewhinney & Strauss is the largest shareholder with 2.28% of outstanding shares, followed by First Eagle Investment with 0.97% and Yacktman Asset Management with 0.23%.
The final position the fund reduced during the quarter was Avon Products Inc. (AVP, Financial). The holding was cut by 7.41% with an impact of 0.04% on the portfolio.
The beauty products manufacturer has a market cap of $640.45 million and an enterprise value of $2.25 billion.
GuruFocus gives the company a profitability and growth rating of 5 out of 10. While the return on assets of 1.08% is underperforming the sector, the return on capital of 39.21% is outperforming 81% of companies in the Global Household and Personal Products industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.41 is below the industry median of 0.66.
Yacktman Asset Management is the company's largest guru shareholder with 4.35% of outstanding shares, followed by Jim Simons' Renaissance Technologies, the Yacktman Funds and several others.Â
Disclosure: I do not own any stocks mentioned in this article.
