Missed the boat on Yacktman Funds

Comments

• lord_nelson

  January 2014

  My 1 large cap US holding is Parnassus Equity Income, but was also looking for a fund with a higher average market cap (parnassus is approx 25 billion on average)
• Ted

  January 2014

  Reply to @lord_nelson: Watch the video of Richie Freeman and his passive approach 2% turnover to being aggressive. In my opinion he is one of the top fund managers of all time.
  Regards,
  Ted
  http://wealthtrack.com/special-series/great-investors-series/richard-freeman-great-investor-exclusive/
  
  M* Snapshot Of SAGCX: http://quotes.morningstar.com/fund/f?t=SAGCX&region=usa&culture=en-US
• lord_nelson

  January 2014

  Thanks for the info @Ted !!
• Ted

  January 2014

  Reply to @lord_nelson: Richie has managed the fund for thirty years, with an average annual return of 12%+.
  Regards,
  Ted
• MikeM2

  January 2014

  FMI funds have concentrated style.
• Old_Skeet

  January 2014 edited January 2014

  Hi Ted and others,
  
  I know this a fund (SAGCX) that you like to tout ... however, one of the things that held me back from buying it was that it holds a large amount of unrealized capital gains which are currently better than sixty percent as I write according to Morningstar. I just do not wish to buy a fund with such a large potential distribution.
  
  I have linked this information for those that would like a look see themselves.
  
  http://performance.morningstar.com/fund/tax-analysis.action?t=SAGCX&region=usa&culture=en-US
  
  Good Investing,
  
  Old_Skeet
  
  
• lord_nelson

  January 2014

  @MikeM2 - i believe FMI Large Cap is also closed.. Was another fund I wanted to get into, but also missed it.. However, I'll keep my eyes open to see if they ever re-open it! Thank you!
• MikeM2

  January 2014 edited January 2014

  FMI focus which may be open was changed to
  Broadview Opportunity. Same subadvisor.
  
• davidrmoran

  January 2014

  Reply to @lord_nelson: GABEX is slightly higher, though like everyone now it tilts toward nonmega. It has been higher than its current $30B market cap in the past, though. You might want to check it out. You might also look into JENSX, $46B mc, though it is too poky for me even in my new retirement pokiness. Also v low turnover.
• Ted

  January 2014

  Reply to @Old_Skeet: The only sure things in life are death and taxes. Granted, if your looking for a tax-efficient fund Richie is not your man. Here's a little something for your to read about mutual funds and capital gain tax.
  Regards,
  Ted
  http://www.ricedelman.com/cs/education/article?articleId=248&titleParam=Why Paying Capital Gains Taxes on Your Mutual Funds Isn't So Bad#.UsVM3WyA2M8
• lova11

  January 2014

  Reply to @MikeM2: HI, Mike.
  FMI has FMI common and FMI large cap funds. They are managed by the same people. They both are closed to new investors. Management of Broadview Oppurtunity Fund is completely different.
  L.
• lord_nelson

  January 2014

  Isnt this fund from one of Don's sons? I think it is.. but not 100% certain
  
  http://www.ycgfunds.com/
• davidrmoran

  January 2014

  Reply to @lord_nelson: Well, one of the children is named Brian, I read, not sure this is the same guy, but seems likely.
• bnath001

  January 2014

  Thanks for the link Ted.
  
  Regards
  nath
• lord_nelson

  January 2014

  Thanks for the info @davidrmoran
• lord_nelson

  January 2014

  For those of you interested, YCGEX is managed by one of Don Yacktman's sons..
• Kenster1_GlobalValue

  January 2014 edited January 2014

  Good story on the Yacktman Fund Family from a year ago if you missed it...
  
  http://finance.fortune.cnn.com/2012/12/13/yacktman-don-funds/

  What's also exceptional is Yacktman's dedication to his family. Six of his seven children have followed him from Chicago, where he lived for 38 years, to Austin, where he moved in 2005. He's been transferring control of the funds to his second-oldest son, Steve, 42. And for the past seven years he has dedicated his life to helping his adult daughter recover from a devastating stroke that left her in a locked-in state.
  
  Meeting Yacktman is a lesson in humility -- he acts more like a church bishop (which he was, incidentally, at his Mormon congregation) than a multibillion-dollar investing star. His voice rarely rises above a quiet conversational level. He answers his phone himself. He doesn't employ anyone to handle public relations. His daughter Melissa, 35, recalls working for him during summer breaks, when lunchtime included inviting the passing homeless man to eat. "It'd be me, my dad, and a homeless guy at Wendy's," she says.
  
  Yacktman's Mormon beliefs, which he's followed since converting to the church when he was 15 years old -- seeking stability after his parents divorced and each remarried several times -- lead him to eschew alcohol and gambling. He avoids promoting his own record or ideas, which is almost never the case when a fund grows as fast as Yacktman's has. "I never want to come across as arrogant," he says from his modest third-floor office in the west hills of Austin, where landscape reprints hang on the walls.
  
  Each of his children can tell a story about his frugality. His son Brian, 33, remembers Don hiring him out of business school for $35,000 less than the going rate for MBAs. Another time at family dinner, the twice-a-month gathering of his children in Austin, his son Rob's wife threw away a recycling bag filled with empty soda cans. Don marched out to the garage to save it. His explanation: "No reason to waste a good bag."
• lord_nelson

  January 2014

  Thanks for the link @Kenster1_GlobalValue !
• Ted

  January 2014

  Reply to @lord_nelson: Just for you your Lordship.
  Regards,
  Ted
  https://www.google.com/search?q=picture+of+lord+nelson&tbm=isch&source=iu&imgil=YcOzh4PKDZBdHM%3A%3Bhttps%3A%2F%2Fencrypted-tbn3.gstatic.com%2Fimages%3Fq%3Dtbn%3AANd9GcSXQa4R6XqRCV2O6XG8kNmT60LnCM1f4tPZXztbbKEJ2XM7wnx5yw%3B460%3B288%3BLbqfQvhhm4PQGM%3Bhttp%253A%252F%252Fwww.telegraph.co.uk%252Fnews%252Fuknews%252F3512848%252FLord-Nelsons-letter-detailing-naval-strategy-against-French-to-be-sold.html&sa=X&ei=yr7FUu6AM6iiyAGKr4DYCw&ved=0CD0Q9QEwBw&biw=1600&bih=731#facrc=_&imgdii=_&imgrc=YcOzh4PKDZBdHM:;LbqfQvhhm4PQGM;http%3A%2F%2Fi.telegraph.co.uk%2Fmultimedia%2Farchive%2F01119%2FLORD-NELSON_1119963c.jpg;http%3A%2F%2Fwww.telegraph.co.uk%2Fnews%2Fuknews%2F3512848%2FLord-Nelsons-letter-detailing-naval-strategy-against-French-to-be-sold.html;460;288
• lord_nelson

  January 2014

  Nice @Ted! Had a few people told me that I looked like him, thus assumed the 'Lord Nelson' name..
• Old_Skeet

  January 2014

  Reply to @Ted:
  
  Thank you for the read. My point was that new share holders would be saddled with tax liability for capital gains the fund has accrued through the years should they make disbursement of same. I would have no problem in paying the taxes if I had been there through the years as they were accumulated. This is a sizeable amount that is better than sixty percent of its net asset value as I write. With a share price of better than $150.00 that comes to better than $90.00 of unrealized capital gains per share and its associated tax liability for both old and new shares holders.
  
  For this reason … this fund is not for me.
  
  Thanks again for the read.
  
  Old_Skeet
  
• bnath001

  January 2014

  Reply to @Old_Skeet:
  Old_Skeet, how about buying this fund in IRA accounts? They are tax deferred accounts.
  
  thanks
  nath
• Old_Skeet

  January 2014

  Reply to @bnath001:
  
  If I was going to purchase it ... It would be in a ira type account. Still with over sixty percent of unrealized gains is a lot for any fund to hold by my thinking.
  
  Old_Skeet
  
• MikeM2

  January 2014

  To clarify:Per M*;
  
  Broadview Opportunity, formerly FMI Focus, got a new moniker to reflect a change in advisor. At the end of November, Broadview Advisors brought the fund in-house after managing it as a subadvisor under the Fiduciary Management Inc., or FMI, family of funds since 2001. This change, which Broadview co-founder and longtime lead manager Rick Lane had expressed as a goal of the firm for several years, should have no impact on fund management.
  
  FWIW.