Yacktman Asset Management's Strategic Moves: A Closer Look at PayPal Holdings Inc.

This article first appeared on GuruFocus.

Insightful Analysis of Yacktman Asset Management (Trades, Portfolio)'s Latest 13F Filing

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Yacktman Asset Management (Trades, Portfolio) recently submitted its 13F filing for the first quarter of 2026, offering a glimpse into its strategic investment decisions. Based in Austin, Texas, Yacktman Asset Management (Trades, Portfolio) is renowned for its value equity investing approach. The firm emphasizes an objective, patient, and diligent investment strategy, aiming for superior returns over a full market cycle. Owned by its partners, including Chief Investment Officer Stephen Yacktman and other key figures, the firm operates autonomously under the umbrella of Affiliated Managers Group, Inc. (AMG). Yacktman Asset Management (Trades, Portfolio) focuses on acquiring securities that promise attractive returns relative to their risk, employing a generalist approach where analysts cover the entire investment universe. The firm prioritizes companies with strong business models, shareholder-oriented management, and attractive purchase prices.

Summary of New Buy

Yacktman Asset Management (Trades, Portfolio) added a total of five stocks to its portfolio, with the most significant addition being PayPal Holdings Inc. (NASDAQ:PYPL). The firm acquired 2,290,642 shares, which now account for 1.38% of the portfolio, valued at $103.61 million. The second-largest addition was FactSet Research Systems Inc. (NYSE:FDS), with 225,874 shares representing approximately 0.65% of the portfolio, valued at $49.01 million. Avantor Inc. (NYSE:AVTR) was the third-largest addition, with 4,745,000 shares accounting for 0.5% of the portfolio, valued at $37.20 million.

Key Position Increases

Yacktman Asset Management (Trades, Portfolio) also increased its stakes in 36 stocks. The most notable increase was in Embecta Corp (NASDAQ:EMBC), with an additional 1,408,962 shares, bringing the total to 3,671,877 shares. This adjustment represents a significant 62.26% increase in share count, impacting the portfolio by 0.16%, with a total value of $32.46 million. The second-largest increase was in U-Haul Holding Co (NYSE:UHAL.B), with an additional 260,937 shares, bringing the total to 6,048,331 shares, valued at $270.18 million.

Summary of Sold Out

Yacktman Asset Management (Trades, Portfolio) completely exited one holding in the first quarter of 2026: Warner Bros. Discovery Inc. (NASDAQ:WBD). The firm sold all 1,782,860 shares, resulting in a -0.72% impact on the portfolio.

Story Continues

Key Position Reduces

Yacktman Asset Management (Trades, Portfolio) reduced its position in 25 stocks. The most significant changes include a reduction in Canadian Natural Resources Ltd (NYSE:CNQ) by 2,233,822 shares, resulting in an 11.9% decrease in shares and a -1.06% impact on the portfolio. The stock traded at an average price of $41.13 during the quarter, returning 27.79% over the past three months and 40.48% year-to-date. Additionally, the firm reduced its position in State Street SPDR S&P 500 ETF Trust (SPY) by 28,323 shares, resulting in an 88.26% reduction in shares and a -0.27% impact on the portfolio. The stock traded at an average price of $679.90 during the quarter, returning 4.57% over the past three months and 6.11% year-to-date.

Portfolio Overview

As of the first quarter of 2026, Yacktman Asset Management (Trades, Portfolio)'s portfolio included 76 stocks. The top holdings were 10.75% in Canadian Natural Resources Ltd (NYSE:CNQ), 4.9% in Microsoft Corp (NASDAQ:MSFT), 4.89% in Charles Schwab Corp (NYSE:SCHW), 4.31% in Alphabet Inc (NASDAQ:GOOG), and 4.2% in PepsiCo Inc (NASDAQ:PEP).

The holdings are primarily concentrated in 10 of the 11 industries: Consumer Defensive, Energy, Communication Services, Financial Services, Industrials, Technology, Healthcare, Basic Materials, Consumer Cyclical, and Utilities.

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