Chuck Akre

Chuck Akre

Last Update: 11-12-2015

Number of Stocks: 35
Number of New Stocks: 1

Total Value: $4,311 Mil
Q/Q Turnover: 11%

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

Chuck Akre Watch

  • How Chuck Akre Beat the Market in 2015 and How He Is Positioned for 2016

    When market volatility beset a number of mutual funds last year, Chuck Akre managed to beat the market and large cap value indexes.


    Middleburg, Virginia-based Akre Capital Management’s Akre Focus Fund ended the year up 2.53%, a not-insubstantial amount in a period when the average of large cap value indexes lost 2.2%, their worst performance since the crash of 2008. The S&P 500 Index, buoyed by a 5.2% average return in growth indexes enjoying a period in the sun, edged up 1.38% for the year.

      


  • Chuck Akre Comments on Colfax

    The one short term blemish in an otherwise strongly performing group of businesses in the fund is Colfax (NYSE:CFX). Calendar year 2015 was a year that challenged Colfax significantly. Colfax is a company which we describe as an “asset allocator.” Their model is to acquire critically important industrial businesses which they can improve operationally and reinvest all the excess cash they generate stemming from the improvements they have instituted. True to their mission, management has made important improvements, especially in the welding business in terms of margin improvement. Our belief continues to be that the company’s shares are likely set up for a rebound in the coming year or two.

    From Chuck Akre (Trades, Portfolio)'s Focus Fund 4th quarter 2015 commentary.  


  • Akre Focus Fund Commentary 4th Quarter 2015

    The market is more turbulent today than when we wrote to you last in October, and there will always be issues throughout the world to make us ill at ease. We continue to make progress in the United States, although not at the pace many would like to see. The U.S. stock market ended 2015 on a positive note, as measured by the S&P 500 TR, up 1.38% despite all the clamoring; the Akre Focus Fund was up 2.53% for Retail shares, and 2.76% for Institutional shares for the year.


    The issues that absolutely drive our work and decision making as it relates to individual investments are characterized by our beloved “three-legged stool.” Today’s environment drives home the importance we place on this. We want to own businesses which are growing in real economic value per share, year in and year out. Even in this turbulent environment, we believe the majority of our chosen businesses are growing in this real economic sense!

      


  • MasterCard, Visa and Lamar Advertising Are Among Chuck Akre's Stocks With High Dividend Yields

    Chuck Akre (Trades, Portfolio), founder of Akre Capital Management LLC, has nine stocks in his portfolio that are high dividend producers.


    Akre 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. Akre likes to buy companies with strong business models demonstrating consistent earnings growth, high return on equity or high compound growth rate in book value per share.

      


  • Chuck Akre Adds to Existing Stakes in 3rd Quarter

    When Chuck Akre (Trades, Portfolio) of Akre Capital Management looks for investment opportunities, he looks for four things: Verifiable track records, solid competitive advantages, opportunities for growth or reinvestment and appealing purchase prices.


    In the third quarter, Akre found that adding to existing stakes was a better option than investing in new stakes – although he did find one of those in the third quarter.

      


  • Investor Chuck Akre Boosts Highest-Conviction Holdings

    Chuck Akre (Trades, Portfolio) oversees $4.9 billion in both private and public mutual fund investments at the Virginia-based asset management firm Akre Capital Management. His team concentrates their portfolio in a small number of positions that they believe have “extraordinary businesses,” honest management and wisely reinvested free cash flow – a trio it dubs “the three-legged stool.”


    According to its third-quarter portfolio update announced Thursday, Akre purchased only one new position in the third quarter, a small 0.73% piece of insurer WMIH Coro. (NASDAQ:WMIH). It also sold out of three tiny holdings: Annaly Capital Management Inc. (NYSE:NLY), Williams Companies Inc. (NYSE:WMB) and NuStar GP Holdings LLC (NYSE:NSH).

      


  • Akre Focus Fund Commentary Third Quarter 2015

    The Akre Focus Fund Retail Shares (AKREX) and Institutional Shares (AKRIX) returned -6.67% and -6.59%, respectively, net of fees and expenses in the third quarter of 2015 versus the S&P 500 TR with a return of -6.44% for the same period.

      


  • Akre Focus Fund Annual Letter

    Dear Fellow Shareholders:


    We were pleased to mark the sixth anniversary of the Akre Focus Fund on August 31, 2015. Thank you for your support and interest during the first six years of the Fund.

      


  • Chuck Akre on Compounding Machine

    Renowned value investor Chuck Akre (Trades, Portfolio) gave this great interview on Wealth Track on the topic of compounding machine. This article is the compilation of my notes from this interview. The interview can be found on YouTube through the following link:


    https://www.youtube.com/watch?v=eEO5G1SjCeU

      


  • Chuck Akre Sells Stake in Discovery Communications

    A classic value approach guides Chuck Akre (Trades, Portfolio)’s investment decisions, and, by extension, his Akre Capital Private Asset Management. The firm’s recent track record illustrates how successful his approach has been, with returns of 11.53% in 2014, 18.5% in 2013 and 37.54% in 2012.


    Akre’s most significant second-quarter transaction was his sale of his 4,622,412-share stake in Discovery Communications Inc. (NASDAQ:DISCK), a Silver Spring, Md.-based mass media and entertainment company, for an average price of $30.93 per share. The deal had a -3.52% impact on Akre’s portfolio.

      


  • 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.

      


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