The Akre Focus Fund Retail Shares (AKREX
) and Institutional Shares (AKRIX
) returned 11.57% and 11.63% net of fees and expenses, respectively in the first quarter of 2013 versus the S&P 500 with a return of 10.61%. Our positions in Dollar Tree (DLTR
), MasterCard (MA
), Markel (MKL
) and TD Ameritrade (AMTD
) were the largest contributors to performance over the quarter. Apple and Diploma were the most meaningful detractors from performance over the quarter. At the end of the first quarter we were 90.4% invested. The portfolio held 34 common stock positions and one convertible preferred position.
During the first quarter we purchased additional shares in both Moody's and Dollar Tree, and initiated a position in Colfax. Moody's has been under pressure recently due to a DOJ lawsuit against its competitor S&P that alleges fraud during lead up to the financial crisis. By inference, Moody's sold off, and we believed it an attractive valuation, given all that we understand about the issues. Likewise Dollar Tree reacted to concerns that the most challenged in our society would have less cash in their pockets, because of tax refund delays etc., thus hurting the dollar store theme. In the long term, it's all nonsense, and we similarly found the valuation attractive, so we added to positions. Continue Reading »