Yacktman Asset Management's Q2 2025 Moves: What Value Investors Should Take Note Of

In Q2 2025, Yacktman Asset Management's portfolio adjustments offer a masterclass in value investing, revealing a firm that is recalibrating its focus to align with macroeconomic tailwinds and sector-specific opportunities. By analyzing its new holdings, such as UnitedHealth Group (UNH), and strategic reductions in Microsoft (MSFT) and Canadian Natural Resources Ltd (CNQ), we can uncover a disciplined, forward-looking thesis that prioritizes durable cash flows, innovation, and risk mitigation. For long-term investors, these moves signal where Yacktman sees the most compelling value—and where it's choosing to step back.

A Strategic Shift: From Energy to Healthcare and AI-Driven Sectors

Yacktman's decision to reduce its stake in CNQ by 18.85% (a -2.08% portfolio impact) reflects a clear recognition of the energy sector's evolving challenges. While CNQ delivered 11.01% returns over three months, the fund's exit underscores its aversion to cyclical plays in an industry increasingly shaped by regulatory pressures and decarbonization mandates. This move aligns with broader trends: energy markets are becoming more volatile as governments accelerate climate policies, and Yacktman's reduction in CNQ suggests a preference for capital reallocation toward sectors with stronger long-term fundamentals.

Conversely, the firm's addition of UnitedHealth Group—a 0.54% portfolio allocation with $40.24 million invested—highlights its growing emphasis on healthcare. UnitedHealth's dominance in insurance, pharmacy benefits, and healthcare services positions it as a beneficiary of aging demographics and rising healthcare costs. The stock's consistent revenue growth (12.3% YoY in Q2 2025) and robust free cash flow margins (28%) make it a textbook example of Yacktman's value-investment criteria: strong management, defensible moats, and attractive valuations.

The Microsoft Reduction: A Rebalancing, Not a Bet

Yacktman's 8.16% reduction in Microsoft—despite the stock's 21.29% three-month return—might seem counterintuitive. However, this move likely reflects a strategic rebalancing rather than a bearish stance. Microsoft, while a durable cash-flow generator, trades at a premium P/E ratio (35x as of Q2 2025), which may have prompted Yacktman to trim its position in favor of undervalued opportunities. The firm's value-oriented approach favors companies with lower price-to-book ratios and higher dividend yields, metrics where Microsoft lags compared to its healthcare and energy peers.

The MSCI and Hershey Bets: Capitalizing on AI and Consumer Resilience

Yacktman's increased stakes in MSCI Inc (53.31% share count boost) and The Hershey Co (44.5% increase) further illuminate its strategy. MSCI, a data and analytics firm, is positioned to benefit from the AI boom, particularly in enterprise software and financial technology. With AI-focused VC funding surging to 24.5% of new launches in 2025, Yacktman's bet on MSCI reflects confidence in the sector's long-term scalability.

Meanwhile, Hershey's 6.35 million portfolio value underscores Yacktman's recognition of consumer defensive stocks as a hedge against economic uncertainty. The company's 9.8% YoY revenue growth and 45% operating margin highlight its pricing power in a sector where demand remains resilient.

Actionable Insights for Long-Term Investors

1. Prioritize Healthcare and AI-Driven Sectors: Yacktman's shift toward UnitedHealth and MSCI suggests a focus on industries with structural growth drivers. Investors should consider adding high-quality healthcare and AI-related assets with strong balance sheets and recurring revenue models.
2. Rebalance Energy Exposure: While energy remains a critical sector, Yacktman's CNQ reduction signals a need to evaluate long-term risks. Investors might consider hedging energy positions with renewable energy or clean-tech plays.
3. Avoid Overvalued Tech Giants: Microsoft's premium valuation, while justified by its dominance, may not align with value-investing principles. Investors should seek tech stocks with lower P/E ratios and higher free cash flow yields.

Conclusion: A Blueprint for Value Investing in a Shifting Landscape

Yacktman's Q2 2025 moves exemplify a disciplined, adaptive approach to value investing. By exiting energy, increasing healthcare exposure, and rebalancing tech holdings, the firm is positioning itself for a future where innovation and resilience trump short-term volatility. For investors, the lesson is clear: focus on companies with durable competitive advantages, strong management, and attractive valuations—regardless of sector. As markets continue to evolve, Yacktman's playbook offers a roadmap for navigating uncertainty while capturing long-term value.