Three Takeaways After 30 Years at Yacktman Asset Management

Stephen A. Yacktman

CHIEF INVESTMENT OFFICER, PARTNER, AND PORTFOLIO MANAGER

Jason S. Subotky

PARTNER, PORTFOLIO MANAGER

Adam P. Sues

PARTNER, PORTFOLIO MANAGER

We asked Yacktman Fund co-portfolio managers to reflect on the Firm’s success as it celebrates 30 years for both Yacktman and its flagship fund, the AMG Yacktman Fund (YACKX).

YACKTMAN_logo

This year also marks the 25th anniversary of the AMG Yacktman Focused Fund (YAFFX). The team provided insight into their active investment approach and how Yacktman has managed market cycles over the long term.

Q. There are many active managers out there. How does Yacktman stand out from the rest? 

A. Our goal is to achieve solid risk-adjusted returns by patiently owning stakes in individual securities. We manage using several core principles.

  • Price and risks matter. Mitigating downside is an important ingredient to long-term compounding.
  • Patience is crucial. We think and analyze with a long-term view.
  • We will hold cash when we see limited opportunities and invest aggressively when we find attractive securities.
  • Flexibility is important. Having the opportunity to invest across market caps, utilize fixed income, or purchase companies outside the U.S. may add significantly to results.

Over time, we have attracted investors who believe in this approach. They know what they are signing up for and how it fits in their overall asset allocation. Our approach is rare these days as so many investors have decided to move to passive indexing, creating what looks to be an overpriced and overcrowded trade.  

Q. The domestic equity space is both highly competitive and marked by passive investing. As a U.S. Large Cap manager, where does Yacktman fit in a portfolio? 

A. We don’t think about fitting into a category or style box. Our focus is on researching and understanding good investment opportunities. The result is typically a concentrated portfolio of securities that we think will deliver attractive risk-adjusted rates of return. 

Due to our flexible mandate and orientation toward risk management, our funds typically have outperformed in difficult markets and in recoveries from market lows. Given high market valuations and significant risks, we think having a manager that has performed well and has significant experience navigating more difficult markets could be crucial to investment success going forward.  

Q. 30 years is quite the milestone. Where does Yacktman go from here?  

A. Investors should expect to see more of the same, which is a focus on achieving solid risk adjusted returns over time via the ownership of individual securities. The portfolio construction will change over time in response to market conditions, but the hallmarks of our approach won’t—a focus on studying and understanding businesses, paying strict attention to price and risk, and employing flexibility where warranted. We want to thank investors who have trusted us with their investment capital and will continue to be patient, diligent, and objective when investing their capital.

Past performance is not a guarantee of future results. Investing involves risk including possible loss of principal. There is no guarantee that these investment strategies will work under all market conditions, and each investor should evaluate their ability to invest for a long term, especially during periods of downturns in the market.

 

Investors should carefully consider the fund’s investment objectives, risks, charges and expenses before investing. For this and other information, please call 800.835.3879 or visit the Prospectus & Annual Reports page for a free prospectus. Read it carefully before investing or sending money.

 

This represents the views and opinions of Yacktman Asset Management. It does not constitute investment advice or an offer or solicitation to purchase or sell any security and is subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of individual holdings or market sectors, but as an illustration of broader theme.

 

Data is from what we believe to be reliable sources, but it cannot be guaranteed. GW&K assumes no responsibility for the accuracy of the data provided by outside sources.

 

AMG Funds are distributed by AMG Distributors, Inc., a member of FINRA/SIPC.

WRITTEN BY

Stephen A. Yacktman

CHIEF INVESTMENT OFFICER, PARTNER, AND PORTFOLIO MANAGER

amg-funds-image-jason-subotky

Jason S. Subotky

PARTNER, PORTFOLIO MANAGER

amg-funds-image-adam-sues

Adam P. Sues

PARTNER, PORTFOLIO MANAGER

PUBLISHED: September 12th, 2022
3 Min Read

The latest perspectives from AMG's experts, affiliates & fund managers

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