The Riskalyze Report: Yacktman Builds Cash, Loses Advisor Assets

1. Apple (AAPL)
2. Aggregate Bond Index (BND, AGG)
3. Doubleline Total Return Bond (DBLTX, DLTNX)

Josh here – in last week’s holiday-shortened period we saw a continuation of the major trend from the week prior, advisors blowing out of short-duration bond funds. For more on that topic, read here.

A new name on the for-sale list this week is the Yacktman Focused Fund, a $10 billion product that costs 1.25% and has underperformed the S&P 500 total return index over the 1, 3 and 5-year periods. Yacktman has been very publicly building up its cash position in recent months (years?) and Morningstar reports that its currently holding 17% of its assets as dry powder.

This is a posture that’s paid off for value managers who’ve had the discipline to do this in the past. Will Yacktman look brilliant when the markets turn?

A word about Riskalyze:

In my practice, we use Riskalyze software tools to help assess clients’ true risk tolerance and to test portfolio configurations that match up accordingly. It’s changed our practice for the better, as I explain here.

Check it out today!

*(to state the obvious, Riskalyze does not share client sensitive data with me or use animals in testing).