Donald Yacktman Liked PepsiCo And P&G Over Patterson, Dreamworks Animation Last Quarter

Last Monday, Yacktman Asset Management, the hedge fund managed by famed Donald Yacktman, disclosed its long equity positions as of the end of the second quarter of the year.

Over the period, the firm started no new stakes, but increased its exposure to 5 stocks, trimmed its participation in another 37, and sold out of 3. Following these transactions, the equity portfolio’s total value fell from $21.7 billion (as of the end of the first quarter) to $18.74 billion -- as of June 30, 2015.

Forty percent of the fund’s assets were allocated to consumer staples, another 20 percent to information technology stocks, and 16 percent to consumer discretionary companies. The remaining 24 percent was divided between healthcare (10 percent), finance (6 percent), energy, transports and materials stocks.

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As of March 31, PepsiCo, Inc. PEP was Yacktman’s most valuable stake, with 25,486,417 shares worth more than $2.4 billion. However, after the fund trimmed its exposure by 12 percent over the second quarter (to 22,349,418 shares), the stock fell to the second position in the list.

PepsiCo traded places with Procter & Gamble Co PG, which used to occupy the second spot in the fund’s list. This stake, worth more than $2.2 billion, accounts for almost 12 percent of the fund’s total equity portfolio.

On the other hand, the fund closed out positions in Patterson Companies, Inc. PDCO, Liberty Interactive Group QVCA and Dreamworks Animation Skg Inc DWA, of which it held 2,235,000 shares, 2,801,301 shares, and 13,500, respectively.

The largest stake closed was that at Patterson, worth more than $109 million as of the end of the first quarter. Also bearish on the company is Matthew Hulsizer's Peak6 Investments, which sold out all of its 10,433 shares over the second quarter.