While many mutual fund managers have hundreds of stocks in their portfolios as a way to diversify away stock specific risk, James K. Glassman says you can get nearly the same diversification benefit with many, many fewer holdings.
Small-cap stock valuations are worrying some investors, including top fund manager Donald Yacktman.
Mutual fund manager Donald Yacktman has put up an exceptional track record for more than a decade, and in a recent interview with Canada’s Globe and Mail, he talked about his investment approach and thoughts on the current market. Yacktman says that the market is not cheap, which is the biggest risk investors face today. He recently had about 20% of his portfolios in cash. “That’s telling you how hard it is to find stocks to buy,” he says, adding that the figure would be even higher if returns on cash weren’t so low right now. Yacktman says price — buy […]
For much of the past few years, top fund manager Donald Yacktman has said high quality stocks had been trading at exceptional discounts to lower quality plays. But in an interview with WealthTrack’s Consuelo Mack, Yacktman says the spreads between high and low quality equities has narrowed dramatically. Yacktman, who focuses on high quality stocks, thus has a higher than average cash position of about 20% (he usually has between zero and 30% of his portfolio in cash). He’s still finding attractive stocks, however, including Coca-Cola, Procter & Gamble, and several “old tech” names. Yacktman also talks about his broader […]
Donald Yacktman’s funds have some of the best long-term track records one can find. And in his funds’ 2012 year-end letter, his team talks about a key part of their strategy: position sizing. “We think position sizing is one of the most important aspects of good portfolio mangement,” the letter states (hat tip to GuruFocus.com for highlighting the letter). “We generally take bigger positions in higher quality, diverse companies that we think can acceptably compound capital at attractive rates of returns or securities that are extremely mispriced due to investor perception issues. At times you may see us take surprising positions […]