Position Hold is a GPS mode. GPS modes require the mags to be working well.
If you are using the on board mag, you will get yaw rotation if your high current wiring is not properly twisted or you have a bad style of PDB. Small quads have a bad problem with this because wires are so close to FC. Twist all high current wire pairs/triplets (battery to connector, connector to PDB, PDB to ESC, ESC to motor) and if that doesn't fix it, consider getting a supported (OPv9, DJI, ... PixHawk but it needs two data ports) GPS that has a mag built in. DJI/Naza GPS is supported in 16.09.
I have a 500 quad that works with onboard mag, but it isn't as good as my 330 with external mag/GPS "up on a post".