Chuck Akre

Chuck Akre

Last Update: 08-14-2015

Number of Stocks: 37
Number of New Stocks: 3

Total Value: $4,152 Mil
Q/Q Turnover: 6%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Chuck Akre Watch

  • Should We Devote Attention to Market Factors?


    Being too far ahead of your time is indistinguishable from being wrong.

      


  • Akre Focus Fund Q2 2015 Commentary

    Akre Focus Fund commentary for the second quarter ended June 30, 2015.


    The Akre Focus Fund Retail Shares (AKREX) and Institutional Shares (AKRIX) returned 1.95% and 2.01%, respectively, net of fees and expenses in the second quarter of 2015 versus the S&P 500 TR with a return of 0.28% for the same period.

      


  • Akre Focus Fund Commentary Second Quarter 2015

    The Akre Focus Fund Retail Shares (AKREX) and Institutional Shares (AKRIX) returned 1.95% and 2.01%, respectively, net of fees and expenses in the second quarter of 2015 versus the S&P 500 TR with a return of 0.28% for the same period.


    Our positions in MasterCard (NYSE:MA) and Moody’s (NYSE:MCO) were the largest contributors to performance over the quarter. Dollar Tree (NASDAQ:DLTR) and Colfax (NYSE:CFX) were the most meaningful detractors from performance over the quarter. At the end of the first quarter, the Fund was approximately 91% invested and the portfolio held 31 positions.

      


  • Chuck Akre Invests in American Tower in First Quarter

    Guru Chuck Akre (Trades, Portfolio)’s only new buy in the first quarter – American Tower Corp (NYSE:AMT) – was sufficient to make that stake the second-most valuable in his portfolio behind MasterCard Inc (NYSE:MA).


    Akre, the founder, chairman and chief investment officer of Akre Capital Management in Middleburg, Virginia, is a proponent of the "three-legged stool" approach, which calls for examining business models, rates of return and reinvestment opportunities.

      


  • Chuck Akre Keeps Buying Roper Industries

    Chuck Akre (Trades, Portfolio) is the founder of Akre Capital Management LLC. He has been in the securities business since 1968 and continues to be the primary person responsible for his firm's investment advisory services and investment selection. He was named to Barron's "Top 100 Mutual Fund Managers" list from 2003-2006, one of only two small cap growth managers to make the list four consecutive years. Chuck Akre (Trades, Portfolio) employs a classic value approach in selecting companies for his portfolio. He likes to buy companies with strong business model demonstrating consistent earnings growth, high return on equity or high compound growth rate in book value per share. He also looks at the quality of the management.


    Chuck Akre (Trades, Portfolio)'s portfolio turnover is remarkably low. His portfolio is also concentrated, with about 40 stocks, and his top ten holdings typically make up over 60% of assets. Roper Industries (ROP) is one of his top ten holdings. As of March 31, 2015, he was holding 1,219,446 shares of the company. Last quarter, he increased his position in Roper Industries by buying 73,056 shares of the company. The following chart shows his holding history in the company.
      



  • Akre Focus Fund Commentary First Quarter 2015

    The first quarter was largely uneventful, once we got past January’s significant declines in the stock market. Our view of the current environment is that across the globe there are many, many things which are worrisome and often frightening. We also believe that this has always been the case. Our strategy, unchanged over the years, is to own very high quality businesses (exceptional businesses, in our parlance), which are run by managers who treat us as partners and where there exists a meaningful opportunity to reinvest cash flows at potentially above-average rates of return.


    Our choice of holdings may often reveal companies you are not fully familiar with, but which we believe demonstrate all the ingredients we admire. Occasionally we find that the passage of time causes us to modify our views about individual investments. However, our history has been that we have more often erred on the side of “hanging on,” rather than selling. This discipline of potentially allowing our profits to grow untaxed is, we are told, contrary to much of the professional investment managements’ practice today. We believe that it is an important differentiator.

      


  • Analyzing Chuck Akre's Top Buys: CarMax

    Chuck Akre (Trades, Portfolio) is the founder of Akre Capital Management LLC. He has been in the securities business since 1968, and continues to be the primary person responsible for his firm's investment advisory services and investment selection. He was on Barron's "Top 100 Mutual Fund Managers" list from 2003-2006, one of only two small cap growth managers to make the list four consecutive years. Akre employs a classic value approach in selecting companies for his portfolio. He likes to buy companies with strong business model demonstrating consistent earnings growth, high return on equity or high compound growth rate in book value per share. He also looks at the quality of the management.


    Akre's portfolio turnover is remarkably low. His portfolio is also concentrated, with about 40 stocks, and his top ten holdings typically make up over 60% of assets.He has been increasing his stake in CarMax (NYSE:KMX) for the past couple of quarters. He bought 505,000 shares of the company last quarter. As of Dec 31, 2014, he was holding 1.7 million shares of the company. The following chart shows his holding history in the company.

      


  • Analyzing Chuck Akre's Top Holdings: Roper Industries

    Chuck Akre (Trades, Portfolio) is the founder of Akre Capital Management LLC. He has been in the securities business since 1968, and continues to be the primary person responsible for his firm's investment advisory services and investment selection. He was named to Barron's "Top 100 Mutual Fund Managers" list from 2003-2006, one of only two small cap growth managers to make the list four consecutive years. Chuck Akre (Trades, Portfolio) employs a classic value approach in selecting companies for his portfolio. He likes to buy companies with strong business model demonstrating consistent earnings growth, high return on equity or high compound growth rate in book value per share. He also looks at the quality of the management.


    Chuck Akre (Trades, Portfolio)'s portfolio turnover is remarkably low. His portfolio is also concentrated, with about 40 stocks, and his top ten holdings typically make up over 60% of assets. Roper Industries (NYSE:ROP) is one of his top ten holdings. As of the last quarter, he was holding 1,146,390 shares of the company.

      


  • Akre Focus Fund 4th Quarter 2014 Commentary

    The fourth quarter turned out to be the strongest of the year. And, as we shared with you in the third quarter letter, we began to put excess capital to work in the fall. We remain pleased with the holdings in the portfolio and feel there have been few surprises in the operating experiences of the Fund’s holdings. We remain optimistic as to the continuation of strong operating performance, given the nature of the businesses owned. As usual, we are not waiting with baited breath for the release of earnings reports or other corporate filings. We are able to move beyond that precisely because of our investment philosophy and implementation.


    The Akre Focus Fund Retail Shares (AKREX) and Institutional Shares (AKRIX) returned 6.97% and 7.03%, respectively, net of fees and expenses in the fourth quarter of 2014 versus the S&P 500 with a return of 4.93% for the same period.

      


  • Akre Adds to Stakes in Third Quarter

    An English literature major in college, guru Chuck Akre (Trades, Portfolio)’s education didn’t appear – on the surface – to prepare him for a career in finance. Upon his graduation from college, he considered going to medical school before opting for the path he took – a path that ultimately led him to start his own firm, Akre Capital Management, in 1989.


    Akre calls his investment philosophy the “three-legged stool” approach, which emphasizes business models, rates of return and reinvestment opportunities. The name is derived from a small milking stool he has in his office. The reasoning behind the name is that, on such a stool – low to the ground – a farmer will not fall far if it flipped over while he was using it. The suggestion is that ACM's investors won’t suffer serious damage if their investments go south on them.

      


  • Bargain Hunting Among the All-Time High List

    Most value investors use the 52 week low or all-time low stock list as a screening tool. I myself was certainly in that camp. Logically speaking, it makes sense to shop in the bargain department as demonstrated by lowest prices.


    What I found interesting is that I see many stocks appear on the all-time low list day after day after day and a good amount of them stay on the low list for an extended period of time. This made me think – do I really want shop in this department?

      


  • Motley Fool's Top Positions in the Financial Sector

    Recently, hedge funds have been filing their form 13-F, which is a quarterly report of equity holdings by filed institutional investment managers with at least $100 million in equity assets under management, as required by the United States Securities and Exchange Commission. In this article, let´s concentrate in one particular hedge fund and try to see the principal holdings in its portfolio. I will look into Motley Fool Asset Management.


    Recently, the fund reported its equity portfolio ended September. The total value of the portfolio amounted to $492.4 million, down from $521.5 million disclosed at the end of the previous quarter. Consequently, the fund's equity market change value was negative 21.5 million in the last quarter. The filing revealed that at the end of September, the fund added three new positions to its equity portfolio and sold out three positions. The top 10 portfolio holdings as of the end of the quarter represented 29.03%. The largest changes from previous 13-Fs fillings are in the energy and consumer discretionary sectors.

      


  • Chuck Akre’s Akre Focus Fund Q3 2014 Commentary

    As you are aware, prices in the third quarter declined by a modest amount in general, but significantly in a few places that interested us a great deal. We actually welcome the current disruption in the market, as it presents us with an opportunity to add to our investments in several of our favorite holdings at more favorable valuations. This is thoroughly consistent with our long-term outlook as investors rather than speculators of stock prices. The Akre Focus Fund Retail Shares (AKREX) and Institutional Shares (AKRIX) returned -1.42% and -1.36%, respectively, net of fees and expenses in the third quarter of 2014 versus the S&P 500 with a return of 1.13% for the same period.


    Our positions in American Tower and Moody’s were the largest contributors to performance over the quarter. Colfax and Markel were the most meaningful detractors from performance over the quarter. At the end of the third quarter the Fund was approximately 94.3% invested and the portfolio held 30 positions.

      


  • Danaher: Prices Go Up While ROE Goes Down

    In this article, let´s see one of the most important financial ratios applying to stockholders, the best measure of performance for a firm's management: the Return on Equity (ROE), and we are going to analyze it in the case Danaher Corp. (NYSE:DHR)


    ROE is calculated as net income applicable to common shares divided by the average book value of common equity: ROE = Net Income / Av. Book Value

      


  • What About CarMax and Its 'Non-Conventional Strategies'?

    In this article, let's take a look at CarMax Inc. (NYSE:KMX),a $11.69 billion market cap company, which is the largest U.S. retailer of used vehicles. It owns and operates more than130 used car superstores in about 60 markets and sells new vehicles at five locations.


    Successful “No-Haggle Pricing”

      


  • Do You Understand the Business?

    One of the key concepts in value investing is circle of competence. Warren Buffett (Trades, Portfolio) has always reminded us to stick to our circle of competence. Only investing in businesses that you can understand intuitively makes sense but what I’ve observed over the years is that the proper definition of understanding a business is often misconstrued.


    Many investors equate understanding the business to understanding the product or service of the business. I certainly wasn’t too far from that line of thinking in my earlier investment journey. I was ignorant enough to think that Coca-Cola, MasterCard and Wal-Mart were without doubt within my circle of competence. I don’t drink Coke, but I certainly know what Coke is. Heck, better yet, I even know Cherry Coke and Diet Coke. I have two credit cards that have MasterCard sign on them and I use them very often. I also go to Wal-mart occasionally. How could I not understand these businesses? They are part of our daily lives.

      


  • Chuck Akre Comments on MasterCard Corporation

    MasterCard Corporation (“MasterCard”) (NYSE: MA)


    Market cap: $85.8 billion (as of 6/30/14)

      


  • Chuck Akre Comments on Moody’s Corporation

    Moody’s Corporation (“Moody’s”) (NYSE: MCO)


    Market Cap: $18.7 billion (as of 6/30/14)

      


  • Chuck Akre Comments on Colfax Corporation

    Colfax Corporation (“Colfax”) (NASDAQ: CFX)


    Market Cap: $9.2 billion (as of 6/30/14)

      


  • Chuck Akre Comments on American Tower Corporation

    American Tower Corporation (“American Tower”) (NYSE: AMT)


    Market Cap: $35.6 billion (as of 6/30/14)

      


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