Investment Approach

AMG Yacktman Global Fund

Yacktman employs a disciplined investment strategy, buying growth companies at what it believes to be low prices. Yacktman believes this approach combines the best features of “growth” and “value” investing. When they purchase stocks, they generally search for companies they believe to possess one or more of the following three attributes:

Good Business

• High market share in principal product and/or service lines
• A high cash return on tangible assets
• Relatively low capital requirements allowing a business to generate cash while growing
• Short customer repurchase cycles and long product cycles
• Unique franchise characteristics
  
  

Shareholder-Oriented Management

Yacktman believes a shareholder-oriented management does not overcompensate itself and wisely allocates the cash the company generates. Yacktman looks for companies that:

• Reinvest in the business and still have excess cash
• Make synergistic acquisitions
• Buy back stock

Low Purchase Price

• Yacktman looks for a stock that sells for less than what an investor would pay to buy the whole company
• The stock prices of individual companies can vary significantly over short periods of time, and such price movements are not always correlated with changes in company fundamental performance. Accordingly, Yacktman generally prefers to wait for buying opportunities. Such opportunities do not always occur in correlation with overall market performance trends

Yacktman is not limited by geographic constraints and sources investment ideas both within the U.S. and overseas