The Yacktman Fund Acquires Olin Corporation and Reduces Its Top Holding Position.The investment fund initiated a position in Olin OLN Corp.
The Booking Holdings interest was diminished.
Additionally, Hengan International Group sold out.
Earlier this month, the Yacktman Fund (Trades, Portfolio) disclosed its second-quarter equity portfolio.
Stephen Yacktman and Jason Subotky administer the fund on behalf of Yacktman Asset Management (Trades, Portfolio), which is headquartered in Austin, Texas.
Combining elements of growth and value investing strategies, it aims to attain both long-term capital appreciation and current income.
When selecting equities, portfolio managers prioritize companies with shareholder-focused management that are trading at a discount.
Considering these criteria, NPORT-P filings for the three months ended June 30 reveal that the firm opened one new position, liquidated two equities, and reduced a number of other existing investments. Notable transactions included a new position in Olin Corp.
(OLN, Financial), a reduced position in Booking Holdings Inc. (BKNG, Financial), and the sale of Hengan International Group Co. Ltd.
Investors should be aware that mutual fund portfolio updates do not always provide a complete picture of a guru’s holdings.
The data is derived from the quarterly updates posted on the website of the relevant fund(s). This typically includes long positions in U.S. and foreign equities.
All figures are as of the end of the quarter; the instructor may have made adjustments to the positions after the quarter ended. Nevertheless, even these limited data can provide useful information.
The fund acquired 2.20 million Olin (OLN, Financial) shares, allocating 1.52% of its equity portfolio to the position. During the quarter, the stock traded at an average price of $53.22 per share.
The Clayton, Missouri-based basic materials company, which produces chlorine, sodium hydroxide, and ammunition, has a market capitalization of $7.11 billion; its shares were trading at $55.01 per share on Thursday, with a price-earnings ratio of 7.31, a price-book ratio of 2.85, and a price-sales ratio of 0.91.
Based on its historical ratios, past financial performance, and analysts’ future earnings forecasts, the GF Value Line indicates that the stock is currently fairly valued.
Olin’s GF Value Line
At 78 out of 100, the GF Score indicates that the company’s future performance is likely to be average. While profitability and momentum were rated highly, growth, financial fortitude, and value were rated more moderately.
Hotchkis & Wiley has the largest stake among the advisers who have invested in Olin, comprising 4.18 percent of its outstanding shares.
Richard Pzena (Trades, Portfolio), Jim Simons (Trades, Portfolio)’ Renaissance Technologies, Paul Tudor Jones (Trades, Portfolio), Keeley-Teton Advisors, LLC (Trades), Mario Gabelli (Trades), and a number of other specialists hold positions in the stock.
The Yacktman Focused Fund (Trades, Portfolio) added a new holding during the quarter.
Selling 15,000 shares, Yacktman reduced its Booking Holdings (BKNG, Financial) position by 17.65 percent. The transaction had a -0.55% impact on the stock portfolio.
During the quarter, shares traded at an average price of $2,641.83 per share.
It now possesses a total of 70,000 shares, which represent 2.54 percent of the equity portfolio as the tenth-largest holding. GuruFocus estimates that the fund’s investment has returned 41.33 percent thus far.
Booking’s holding history in the Yacktman Fund.
The company, headquartered in Norwalk, Connecticut, owns and operates a number of online travel agencies, including Booking.com, Kayak, Priceline.com, and OpenTable.
Its market capitalization is $109.27 billion, and its shares were trading around $2,958.46 per share on Thursday, with a price-earnings ratio of 29.01, a price-book ratio of 102.51, and a price-sales ratio of 6.
According to GF Value Line, the stock is presently modestly undervalued.
Booking’s GF Value Line
The GF Score of 84 indicates that the company has a good performance potential due to its high profitability, value, and momentum rankings, as well as its moderate growth and financial strength rankings.
GF Score for Booking
With a 2.24 percent stake, Dodge & Cox is the largest expert shareholder in Booking. Ken Fisher (Trades, Portfolio), Steve Mandel (Trades, Portfolio), Baillie Gifford (Trades, Portfolio), Pzena, and Bill Nygren (Trades) are among the other best guru investors.
During the quarter, the firm’s Focused Fund reduced its investments by 25%.
International Hengan Group
The fund sold its 6,93 million shares of Hengan International (HKSE:01044, Financial), resulting in a -0.45% decrease to its equity portfolio.
During the quarter, the stock traded on average for 35.06 Hong Kong dollars ($4.49) per share.
GuruFocus discovered Yacktman had a lifetime investment loss of 57.40 percent.
Hengan’s possession history as held by Yacktman.
The Chinese manufacturer of diapers and other hygiene products has a market capitalization of HK$35.62 billion; its shares were trading around HK$30.45 on Thursday with a price-earnings ratio of 15.99, a price-book ratio of 1.63, and a price-sales ratio of 1.30.
The stock appears to be substantially undervalued based on the GF Value Line.
Hengan’s GF Value Line
The GF Score of 84 indicates that the company has a strong potential for outperformance, based on its high ratings for profitability, value, and momentum, as well as its moderate rankings for growth and financial strength.
Hengan’s GF Rating
Currently, only the iShares MSCI ACWI ex-U.S. ETF (Trades, Portfolio) is engaged in Hengan International, holding 0.01% of its outstanding shares.
Additional transactions and performance of the portfolio
During the quarter, the fund managers sold out of Rinnai Corp. (TSE:5947, Financial) and reduced their positions in Brenntag SE (XTER:BNR, Financial), Weatherford International PLC (WFRD), Associated British Foods PLC (LSE:ABF) and Bollore SSE (XPAR:BOL).
The majority of Yacktman’s $7.45 billion, 57-stock equity portfolio is invested in the communication services, consumer defensive, energy, and technology industries.
A sector-by-sector summary of the fund’s equity portfolio.
The fund outperformed the S&P 500 Index in 2022 with a return of -7.37 percent, according to GuruFocus data. The benchmark posted a return of -18.11%.
I/we hold no positions in any of the securities mentioned and have no plans to initiate any new positions within the next 72 hours.