Is AMG Yacktman I (YACKX) a Strong Mutual Fund Pick Right Now?

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If you’ve been stuck searching for All Cap Value funds, consider AMG Yacktman I (YACKX) as a possibility. YACKX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

Load Error

Objective

We classify YACKX in the All Cap Value category, an area rife with potential choices. Like the name suggests, MUTUAL FUNDS invest in small, medium, and large-cap companies, though they end up focusing on bigger firms due to percentage of assets. These funds look for key value characteristics, targeting stocks that boast low P/E ratios, high dividend yields, and whose share prices do not reflect their worth.

History of Fund/Manager

AMG Funds is based in Greenwich, CT, and is the manager of YACKX. Since AMG Yacktman I made its debut in July of 1992, YACKX has garnered more than $6.47 billion in assets. The fund is currently managed by Stephen Yacktman who has been in charge of the fund since December of 2002.

Performance

Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 11.16%, and it sits in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 10.05%, which places it in the top third during this time-frame.

When looking at a fund’s performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. YACKX’s standard deviation over the past three years is 15.9% compared to the category average of 18.7%. Looking at the past 5 years, the fund’s standard deviation is 12.77% compared to the category average of 15.66%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

Investors should note that the fund has a 5-year beta of 0.76, so it is likely going to be less volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio’s performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a positive alpha of 0.32. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Expenses

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, YACKX is a no load fund. It has an expense ratio of 0.71% compared to the category average of 1.05%. So, YACKX is actually cheaper than its peers from a cost perspective.

This fund requires a minimum initial investment of $100,000, and each subsequent investment should be at least $100.

Bottom Line

Overall, AMG Yacktman I ( YACKX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, AMG Yacktman I ( YACKX ) looks like a good potential choice for investors right now.

For additional information on the All Cap Value area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into YACKX too for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.

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