Yacktman Asset Management Q1 2026 13F Holdings and Activity Report

I. Institutional Overview

The current portfolio composition, featuring 76 distinct holdings , reveals a sophisticated balance between concentration and diversification. While 76 stocks might suggest a broad-market approach at first glance, a deeper dive into the weight distribution shows a "heavy-top" structure. This is the hallmark of a "conviction-led value" strategy. Donald Yacktman has historically advocated for investing in "high-quality businesses at reasonable prices," a philosophy that mirrors the classic Graham-and-Doddsville tradition but with a modern emphasis on free cash flow and capital allocation efficiency. The institution’s psychological portrait is one of extreme patience and risk-aversion. They are not "market timers" in the traditional sense; rather, they are "business analysts" who happen to trade stocks.

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II. Sector Allocation Analysis

Conversely, the Energy sector (19.23%) serves as a powerful hedge. In a world of geopolitical uncertainty and supply-side constraints, energy assets—particularly those with low-cost production profiles—act as a "ballast" for the portfolio. This is not a speculative bet on oil prices but rather a structural allocation to cash-flow-generative machines. The near-parity between Staples and Energy creates a "barbell" effect: one side provides stability through economic downturns, while the other provides a hedge against commodity-driven inflation.

Based on this allocation, we can infer that Yacktman Asset Management is positioned for a "Grind-Out" Economy . They are avoiding the "froth" of the discretionary and high-tech sectors, instead anchoring their capital in the foundational elements of the global economy: food, energy, and communication. Their judgment seems to be that while the "AI revolution" or "consumer boom" might grab headlines, the most reliable path to preserving and growing capital in 2026 lies in businesses with tangible assets and inelastic demand. This is a "safety first" allocation that does not sacrifice the potential for capital appreciation, provided the underlying businesses continue to execute on their fundamental operations.

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III. Top 10 Holdings Deep Dive

Holding a staggering 10.75% of the portfolio, CNQ is the undisputed cornerstone of Yacktman’s current strategy. Despite a 11.90% reduction in the number of shares held this quarter, the position’s weight actually increased from 8.9% to 10.75%. This is a critical distinction: the increase in portfolio weight despite a reduction in shares indicates that CNQ significantly outperformed the rest of the portfolio during the quarter. Yacktman likely trimmed the position to manage risk and prevent it from becoming an overly dominant portion of the fund, a classic "rebalancing" move rather than a loss of faith. CNQ represents a "conviction holding" in the truest sense. As one of the largest independent crude oil and natural gas producers in the world, CNQ possesses a vast asset base with long-reserve life and low decline rates. For a value investor like Yacktman, the attraction lies in the company’s exceptional free cash flow generation and its commitment to returning capital to shareholders through dividends and buybacks. The reduction in shares was likely a tactical harvest of profits following a period of strong price appreciation, ensuring that the "house money" continues to work while locking in gains.

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IV. Major Buys/Additions

The most significant move this quarter was the establishment of a new position in PayPal, with an estimated investment of $103.61 million . This is a classic Yacktman move: identifying a former market darling that has fallen out of favor and is now trading at a "value" valuation. PayPal has faced significant headwinds, including intensifying competition from Apple Pay and a perceived slowdown in its core checkout business. However, from a value perspective, the company remains a cash-flow powerhouse with a massive global user base. By initiating a 1.38% position, Yacktman is making a " distressed reversal bet ." They likely believe that the market has over-discounted PayPal’s future growth and that the company’s new leadership and focus on profitability will drive a significant valuation repair. This is an offensive move into the fintech space at a time when sentiment is lukewarm, suggesting a high degree of contrarian conviction.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

V. Major Sells and Exits

The reduction of $109.46 million in CNQ is the largest cash-out operation of the quarter. As discussed in the Top 10 analysis, this is a " High amount + high weight " operation that qualifies as a Strategic Rebalancing . When a single stock grows to represent nearly 11% of a multi-billion dollar portfolio, it creates a concentration risk that most institutional mandates seek to mitigate. By selling nearly 12% of their shares, Yacktman is effectively "harvesting the crop." They are locking in significant gains from the energy sector’s outperformance and using that capital to fund new ideas like PayPal and FactSet. This is not a signal of fundamental weakness in CNQ, but rather a disciplined exercise in portfolio construction. It is "selling high" to "buy low" elsewhere.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

VI. Investment Insights and Risk Warnings

The Logic Chain Summary : 1. Sold/Trimmed : High-performing energy (CNQ) and troubled legacy media (WBD). 2. Why : To manage concentration risk and exit broken investment theses. 3. Bought : Undervalued fintech (PYPL), financial data (FDS), and life sciences supply chain (AVTR). 4. Why : To capture the "valuation gap" in high-quality, high-moat service businesses that have been overlooked by the market. 5. Result : A portfolio that remains anchored in defensive staples and energy but has a significantly higher "growth-value" potential heading into the rest of 2026.

Disclaimer : This analysis is for informational and educational purposes only and does not constitute investment advice, financial advice, or a recommendation to buy or sell any security. All investments involve risk, including the possible loss of principal. Investors should conduct their own research or consult with a qualified financial advisor before making any investment decisions. The author and the platform are not responsible for any financial losses resulting from the use of this information.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

Sources and limitations

This report uses public U.S. Securities and Exchange Commission Form 13F disclosures and structured data maintained by 13F Hub. A 13F filing is a quarter-end snapshot of reportable long positions, is normally published with a delay, and does not disclose every short position, cash balance, bond, derivative, or non-U.S. asset.

Narrative content is prepared from the same-period SEC disclosure and 13F Hub structured data, then checked before publication. This material is for research and education, not personalized investment advice.