Canadian Oil at #1 in a PepsiCo-and-P&G Portfolio: Inside Yacktman's $7.1B Consumer Brand Fortress

A fund synonymous with PepsiCo, Procter & Gamble, and Coca-Cola just filed its Q4 2025 13F — and the #1 holding isn’t a consumer brand. It’s Canadian Natural Resources (CNQ), a Calgary-based oil and gas producer commanding 8.9% of Yacktman’s $7.1 billion portfolio. For a firm built on the idea that great brands compound wealth over decades, putting an energy stock at the top says something about where Donald and Stephen Yacktman see value right now.

TL;DR

• AUM: $7.14 billion across 72 holdings (Q3: $7.26B, 70 holdings — down 1.6%)
• #1 holding: Canadian Natural Resources (CNQ) at $635.5M / 8.9% — an oil company in a consumer brand portfolio
• Average buy price on CNQ: $15.86 — current price ~$39 = +146% unrealized gain
• Consumer staples core: PEP + PG + KO + KVUE + JNJ + TSN + INGR = $1.41B (19.8% of portfolio)
• Energy exposure: CNQ + FANG + COP + EOG + TLN = $1.19B (16.6%) — unusually high for a “brand” investor
• Media bets: FOX + NWSA + DIS = $705M (9.9%) — traditional media in a streaming world
• Broad trimming: Yacktman sold small portions of nearly every position in Q4
• Tech exposure: MSFT + GOOG + CTSH + EBAY = $1.20B (16.8%) — but all are value-priced, not speculative

Filing Snapshot

Metric	Q4 2025	Q3 2025	Change
Total 13F Value	$7.14B	$7.26B	-1.6%
Holdings Count	72	70	+2
Report Date	Dec 31, 2025	Sep 30, 2025	—
Filing Date	Feb 3, 2026	—	—
Top-1 Concentration	8.9% (CNQ)	9.2% (CNQ)	-0.3pp
Top-5 Concentration	31.0%	31.9%	-0.9pp
Top-10 Concentration	50.6%	52.4%	-1.8pp

Why Does a Consumer Brand Investor Love Canadian Oil?

Yacktman Asset Management bought Canadian Natural Resources at an average cost of $15.86 per share. At the current price around $39, that’s a +146% unrealized gain — before counting the hefty dividends CNQ has paid along the way. Canadian Natural is essentially a cash-flow machine: it’s the largest independent crude oil and natural gas producer in Canada, with a massive reserves base and decades of production runway.

The Yacktman philosophy centers on “Forward Rate of Return” — combining growth rate, profitability, and reinvestment potential. CNQ fits this framework perfectly: it generates enormous free cash flow, maintains a 24-year consecutive dividend increase streak, and trades at a single-digit P/E. In Yacktman’s eyes, CNQ is a consumer brand — the consumer just happens to be the global economy’s appetite for energy.

That said, the Yacktmans did trim 10.2% of their CNQ position in Q4 (from 20.9 million shares to 18.8 million), pocketing gains while keeping it firmly at #1. This is classic Yacktman: harvest winners gradually, never dump them wholesale.

The Consumer Brand Fortress

While CNQ steals the spotlight, the heart of the portfolio remains consumer brands. Seven staples stocks account for $1.41 billion or 19.8% of the portfolio:

• PepsiCo (PEP): $291M (4.1%) — the second-largest consumer staple, held for decades at an avg buy price of $71.87 (+132% gain)
• Procter & Gamble (PG): $275M (3.8%) — the quintessential brand compounder, avg buy $66.45 (+139% gain)
• Johnson & Johnson (JNJ): $259M (3.6%) — healthcare-consumer hybrid, avg buy $65.84 (+262% gain)
• Coca-Cola (KO): $147M (2.1%) — the Buffett classic, avg buy $37.64 (+104% gain)
• Kenvue (KVUE): $136M (1.9%) — the J&J consumer health spinoff (Tylenol, Band-Aid, Listerine)
• Tyson Foods (TSN): $146M (2.0%) — America’s largest protein company
• Ingredion (INGR): $157M (2.2%) — specialty food ingredients, a hidden compounder

These positions share common traits: wide moats, pricing power, and decades of dividend growth. Every single one was trimmed slightly in Q4, but none were exited. Yacktman harvests; he doesn’t abandon.

The Media Trifecta: FOX, News Corp, and Disney

Another distinctive Yacktman theme is the $705 million media block (9.9% of portfolio):

• Fox Corp (FOX): $362M (5.1%) — Fox News is a cash machine with near-monopoly positioning in conservative media. Avg buy $34.89 (+65% gain).
• News Corp (NWSA): $191M (2.7%) — Rupert Murdoch’s publishing empire (WSJ, Dow Jones, REA Group). Trimmed from $228M.
• Walt Disney (DIS): $152M (2.1%) — The rare Yacktman position underwater (avg buy $124.63, current ~$110). Trimmed 1.8%.

FOX and NWSA are deep value bets on traditional media assets with irreplaceable content libraries. Disney is the contrarian bet — Yacktman appears to be averaging into the streaming transformation at depressed prices.

The Great Q4 Trim: Selling Everything a Little

The most notable pattern in Q4 isn’t what Yacktman bought — it’s that he trimmed nearly everything. Out of the top 20 positions, all but one were reduced:

Stock	Q3 Shares	Q4 Shares	Change
CNQ	20,908,511	18,775,420	-10.2%
MSFT	1,028,018	963,825	-6.2%
SCHW	4,194,646	3,936,540	-6.2%
FOX	5,798,698	5,569,791	-3.9%
GOOG	1,166,413	1,129,807	-3.1%
PEP	2,060,313	2,028,631	-1.5%
PG	1,941,870	1,918,353	-1.2%
CTSH	3,299,434	2,983,431	-9.6%

This isn’t panic selling — it’s systematic rebalancing. When Yacktman trims across the board, it typically signals one of two things: either the fund is raising cash for anticipated opportunities, or client redemptions require proportional selling. With AUM down just 1.6% QoQ, a mild mix of both seems likely.

Value Tech: Microsoft and Alphabet at Value Prices

Yacktman holds Microsoft (MSFT) at $466M (6.5%) and Alphabet (GOOG) at $355M (5.0%) — but these aren’t momentum chases. Microsoft was first purchased at an average of $27.99 (current ~$413 = +1,377% gain), and Alphabet at $59.47 (current ~$319 = +436% gain). Both were bought when the market considered them undervalued, and Yacktman has held through multiple cycles.

Combined with Cognizant (CTSH) at $248M and eBay (EBAY) at $134M, the “tech” block totals $1.2B (16.8%) — but every position was bought at value prices and held for years. This is tech investing with a Graham & Dodd lens.

What the Portfolio Tells Us

The Yacktman portfolio in Q4 2025 is a masterclass in patient, cross-sector value investing. The top holdings reveal a manager who:

• Buys when others won’t: CNQ was accumulated at ~$16. Consumer brands were bought during periods of market neglect.
• Holds what works: Average holding periods span years or decades. The +146% on CNQ, +1,377% on MSFT, and +262% on JNJ prove the compounding thesis.
• Trims, never dumps: Systematic 1-10% trims across the portfolio instead of dramatic exits.
• Diversifies across value themes: Consumer brands, energy cash cows, traditional media, and value-priced tech all coexist.

Frequently Asked Questions

Why is Canadian Natural Resources Yacktman’s #1 holding?

CNQ generates enormous free cash flow, has a 24-year dividend growth streak, and trades at a low P/E. Yacktman bought at ~$16/share and has ridden the position to a +146% gain. The stock fits the fund’s “Forward Rate of Return” framework perfectly.

Is Yacktman selling out of his positions?

No. The Q4 trimming was systematic and small (1-10% of each position). This is standard rebalancing, not a change in conviction. Every top-20 position was maintained.

How much of Yacktman’s portfolio is in consumer brands?

Consumer staples stocks (PEP, PG, KO, KVUE, JNJ, TSN, INGR) represent 19.8% or $1.41B of the portfolio. Including consumer discretionary names, the consumer exposure is even higher.

What is Yacktman’s investment strategy?

Yacktman uses a “Forward Rate of Return” approach that evaluates growth rate, profitability, and reinvestment rates to estimate future returns. The fund targets companies with sustainable competitive advantages that can compound for decades.

Does Yacktman own any AI or semiconductor stocks?

No. The portfolio has zero direct AI or semiconductor exposure. The closest “tech” holdings are Microsoft and Alphabet, both bought years ago at value prices, plus IT services firm Cognizant.

What are the biggest unrealized gains in the portfolio?

Microsoft at +1,377%, Johnson & Johnson at +262%, Procter & Gamble at +139%, PepsiCo at +132%, and Canadian Natural Resources at +146%. These multi-bagger returns demonstrate the power of patient value investing.