Re-evaluating Samsung's Role in the AMG Yacktman Fund: A Strategic Shift in Tech Exposure?

The AMG Yacktman Fund, managed by Donald Yacktman, has long been celebrated for its value-oriented approach and contrarian streak. Yet, in the third quarter of 2025, the fund's performance and portfolio adjustments have sparked renewed interest in its evolving stance on technology stocks-particularly its growing reliance on Samsung Electronics. With the global semiconductor industry at a crossroads amid AI-driven demand and geopolitical tensions, the fund's strategic shifts could offer insights into broader market dynamics.

A Pivotal Role for Samsung in Q3 2025

According to a report by , Samsung Electronics (OTCPK:SSNLF) emerged as the AMG Yacktman Fund's largest holding in Q3 2025, accounting for 8.19% of its net assets. This marked a dramatic reversal from the previous year, when Samsung was a detractor for the fund. The company's performance was buoyed by a design win with Nvidia for high-bandwidth memory (HBM) chips, a critical component for AI applications. This development aligns with the fund's recent focus on capitalizing on secular trends, such as the AI boom, which has reshaped valuations across the tech sector.

Samsung's prominence in the fund's portfolio also reflects a broader recalibration of risk. While the fund's 5.12% return for Q3 2025 lagged behind the S&P 500's 8.12%, it outperformed the Russell 1000 Value Index year-to-date. This suggests that Yacktman's team is prioritizing long-term growth in high-conviction tech plays over short-term market benchmarks-a departure from its traditionally conservative value orientation.

Historical Context: A Mixed Record in Tech Exposure

In Q3 2024, the fund's top holdings included Microsoft (5.51%) and Alphabet (implied as a contributor), but no explicit semiconductor exposure was disclosed. This contrasts with Q3 2025, where Samsung's allocation nearly doubled that of Microsoft's. The absence of detailed historical 13F filings for semiconductor holdings prior to 2025 complicates a full assessment of the fund's strategic evolution. However, the recent emphasis on Samsung indicates a deliberate pivot toward high-growth tech sectors, particularly those tied to AI infrastructure.

Strategic Implications and Market Dynamics

The fund's increased exposure to Samsung and Alphabet Inc. underscores a calculated bet on the AI-driven economy. As in an analysis of the fund's performance, Samsung's HBM chips are pivotal for training large language models and other AI applications. This aligns with broader industry trends, where semiconductor demand is projected to grow at a compound annual rate of 8% through 2030.

Yet, this strategy carries risks. The semiconductor sector remains cyclical and vulnerable to overvaluation, as seen in the recent volatility of tech megacaps. The AMG Yacktman Fund's concentrated portfolio-where the top ten holdings account for 42.64% of net assets-heightens sensitivity to sector-specific downturns. For investors, this raises questions about whether the fund is overexposed to a single industry or if its active management can mitigate such risks through timely rebalancing.

Conclusion: A Calculated Bet on the Future

While the AMG Yacktman Fund's Q3 2025 portfolio reveals a clear strategic shift toward tech megacaps and semiconductors, the lack of granular historical data limits a definitive assessment of this trend. What is evident, however, is the fund's willingness to embrace high-conviction, high-growth investments in response to macroeconomic tailwinds like AI adoption. For value investors, this signals a nuanced evolution in the fund's risk profile-one that balances its traditional contrarian ethos with a forward-looking approach to technological disruption.

As the semiconductor industry continues to redefine global supply chains and innovation cycles, the AMG Yacktman Fund's performance in the coming quarters will serve as a litmus test for the viability of this strategy. Investors should monitor its 13F filings closely for further clues on how Yacktman's team navigates the intersection of value investing and tech-driven growth.