| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 10.5% | 6.2% | 19.8% |
| 2025 | 2024 |
|---|---|
| 19.8% | 4.9% |
The AMG Yacktman Fund returned 6.20% in Q4 2025 and 19.82% for the full year, outperforming both the Russell 1000 Value Index and S&P 500. The fund's value-oriented approach focuses on evaluating normalized free cash flow and business fundamentals to identify companies trading below intrinsic value. Key contributors included Samsung Electronics, which recovered after being awarded HBM qualification with NVIDIA and ramping production quickly, benefiting from AI data center demand and IoT device proliferation. Hyundai Mobis performed well due to EV penetration gains and strong capital allocation. Both Korean holdings benefited from South Korea's value-up reforms aimed at improving governance and shareholder value creation, potentially leading to MSCI re-rating from emerging to developed market status. Warner Bros. Discovery contributed as bidding activity re-rated media valuations. Detractors included U-Haul, despite the company's astute long-term capital allocation into self-storage. The managers believe the portfolio is well-positioned for attractive risk-adjusted returns with significant value unlocks ahead.
Yacktman employs a value-oriented approach focused on evaluating normalized free cash flow and business fundamentals to identify companies trading below their intrinsic value, with particular emphasis on long-term risk-adjusted returns and owner's mindset investing.
We believe the portfolio is extremely well positioned to produce attractive risk-adjusted returns. We believe that some of the unlocks we have been seeing in the portfolio are just scratching the surface of what is possible in the portfolio.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Feb 4 2026 | 2025 Q4 | 000660.KS, 005930.KS, 012330.KS, AAPL, CNQ, FOXA, GOOGL, MSFT, MU, NFLX, NVDA, PEP, PG, SCHW, UHAL, UMG.AS, VIV.PA, WBD | AI, Electric Vehicles, free cash flow, long-term, Media, semiconductors, South Korea, value | - | Yacktman builds the portfolio based on evaluating normalized free cash flow and business fundamentals, comparing price to arrive at forward rate of return based on… |
| Dec 31 2025 | 2025 Q3 | 005935 KS, BOL FP, UHAL | capital preservation, Long-Term Investing, quality businesses, risk management, Value Discipline | - | The letter emphasizes disciplined value investing in an increasingly momentum-driven market where many high-quality companies trade at elevated valuations. The manager focuses on downside protection,… |
| Aug 7 2025 | 2025 Q2 | 005935 KS, PEP | Discipline, downside protection, quality franchises, uncertainty, Valuation risk | - | The letter reiterates concern around concentrated indices and stocks priced for perfection. Management emphasizes downside protection through conservative assumptions and durable franchises. The outlook remains… |
| Mar 31 2025 | 2025 Q1 | 005930 KS, BOL FP, UHAL | - | - | - |
| Dec 31 2024 | 2024 Q4 | 005930 KS, TEP FP | - | - | - |
| May 4 2024 | 2024 Q1 | BOL FP, CNQ, DAR, EAF, EMBC, FANG, K, UHAL | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIThe extended federal government shutdown added volatility during what was otherwise a risk-on environment, with a mid-quarter shift in market behavior for AI-related equities as the exuberant narrative evolved to one more balanced in assessing the technology's enormous potential against staggering capital spending plans and high expectations. The team initiated a position in Credo Technology as a more diversified way to gain exposure to strong trends in AI-connectivity. |
Connectivity Semiconductors Infrastructure Capital Spending |
Electric VehiclesRivian represents maybe the most exciting position in the portfolio, with the company developing its own autonomy platform and in-house chip (RAP1). The R2 model represents a pivotal moment, and partnerships with Volkswagen and Amazon have strengthened the balance sheet while expanding strategic options. |
Autonomy Manufacturing Technology Partnerships Scale | |
MediaWarner Bros Discovery was the top contributor as multiple parties submitted acquisition offers, with Netflix acquiring the Streaming and Studios business while Global Networks spins to shareholders. Paramount Skydance made a $30 per share offer for the entire company, creating a bidding war that unlocked shareholder value. |
Streaming M&A Content Entertainment Bidding | |
SemiconductorsMACOM Technology Solutions rose nearly +40% as the company experienced broad-based demand, similar to many semiconductor companies in 2025. The team exited Astera Labs following industry conference presentations that suggested emerging competitive risks and concerns over single customer concentration, while initiating a position in Credo Technology for AI-connectivity exposure. |
Demand Competition Connectivity Customer Concentration | |
South KoreaKorea has been a fast follower in shareholder rights enhancements, with government legislation and most companies now having value-up plans. The KOSPI Index gained 79% in 2025, though the market still trades at less than 11x forward earnings, suggesting the Korean discount remains. |
South Korea KOSPI Value-up Korean Discount | |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled | |
| 2025 Q3 |
Quality Assets |
|
Risk Awareness |
||
Value Discipline |
||
| 2025 Q2 |
ValuationAI-related companies continue to command premium valuations while other sectors remain reasonably priced. This valuation divide continues to guide investment activity, with the fund remaining wary of companies trading at exceedingly high valuations that imply exceptional multi-year earnings growth. |
Premium Divide Discipline Stretched Reasonable |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| 000660.KS | SK Hynix has solidified its leadership in high-bandwidth memory (HBM), emerging as the exclusive HBM supplier for Microsoft's in-house AI accelerator and securing roughly two-thirds of NVIDIA's anticipated HBM4 demand for its next-generation platforms at meaningfully higher price points and margins than prior generations. |
| 005930.KS | Selected technology-related companies held across several of our funds contributed for the quarter, particularly established franchises such as Samsung Electronics and Alphabet (Google). While the shares of both companies soared upward in price during the year, we believe they remain reasonably valued relative to their near-term growth prospects. |
| 012330.KS | Hyundai Mobis performed well in 2025 as well. Hyundai Mobis is one of the top global auto parts supplier and benefitted from share gain and electric vehicle (EV) penetration by Hyundai and Kia, and the company continued its strong capital allocation discipline. Both companies participated in the strong regulatory and market access initiatives that South Korea undertook last year. |
| AAPL | AAPL shares rose in 4Q25 following better-than-feared iPhone 17 sell-through trends and stronger Services momentum. The company reported that early adoption of its on-device AI features exceeded internal expectations, particularly in North America and Europe, where attach rates for Pro models remained elevated. Wearables also returned to growth, helped by new health features and improved battery life. |
| CNQ | Canadian Natural Resources: Continued execution led to earnings beat. Increased Canadian egress enabled 20% Y/Y production growth. |
| FOXA | Fox Corporation was sold in December as its share price now more fully reflected its core operational strength and the value of ancillary assets. Over our investment period the share price doubled as the market reassessed Fox's competitive positioning and earnings quality. |
| GOOGL | In the third quarter, Google, Kairos Power, and the Tennessee Valley Authority announced a major collaboration centered on a novel power purchase agreement. Google followed this announcement with another significant step forward. On October 27, Google and NextEra Energy announced plans to restart the Duane Arnold Energy Center. |
| MSFT | MSFT was a detractor in 4Q25 following its fiscal first-quarter 2026 earnings report released on October 29. While results were better than expected operationally, investor reaction was driven by guidance and capital expenditure intensity rather than headline performance. Revenue grew 17% year-over-year, exceeding consensus expectations, and Azure revenue increased 39% year-over-year, also ahead of estimates. However, management guided to a sequential deceleration in Azure growth in fiscal Q2, signaling some moderation after a period of exceptional demand. |
| MU | Core gains were led by investments in the Technology sector including Micron |
| NFLX | NFLX was the portfolio's largest detractor in 4Q25 following investor concerns around near-term subscriber growth and rising content spending. While revenue grew approximately 10% year-over-year, management guided to slower net subscriber additions in North America and Europe after recent price increases, and margins were pressured by elevated investment in live sports and international content. |
| NVDA | Capital spending from Google, Microsoft, Amazon, Meta, OpenAI, and more have led to Nvidia becoming the Rrst 5 trillion market cap company. |
| PG | The multiples of technology stocks should be quite a bit lower than the multiples of stocks like Coke and Gillette |
| SCHW | We also added to The Charles Schwab Corporation, which is benefiting from positive earnings revisions, expanding margins, and higher capital returns after having repaid nearly all of its high cost funding. |
| UHAL | The largest detractors were Lennar Corp (LEN), U-Haul Holdings (UHAL/B), and Occidental Petroleum (OXY). |
| UMG.AS | UMG is a high-quality, capital-light, rapidly growing royalty on greater music consumption. 'Streaming 2.0' deals, which incorporate wholesale price increases, should lead to higher subscription revenue growth. New partners and product tiers should allow for better customer segmentation. AI can be a further tailwind to growth. |
| VIV.PA | Concerns over regulatory difficulties across group companies |
| WBD | Warner Bros Discovery (WBD) was the top contributor during the quarter. The U.S.-headquartered media company's stock price surged as multiple parties submitted offers to acquire all or part of the business. Following several rounds of bidding, WBD announced an agreement to sell its Streaming and Studios business to Netflix, while spinning the Global Networks business to shareholders. Paramount Skydance subsequently made a direct $30 per share offer to shareholders for the entire company. We are pleased with the steps the WBD board has taken thus far to unlock shareholder value. We will continue to closely monitor developments as this bidding war unfolds. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
