Chuck Akre

Chuck Akre

Last Update: 11-15-2016

Number of Stocks: 33
Number of New Stocks: 0

Total Value: $5,209 Mil
Q/Q Turnover: 0%

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

Chuck Akre Watch

  • Chuck Akre's Best Investments of the Year

    Chuck Akre (Trades, Portfolio) is the founder of Akre Capital Management LLC. As of 2007, his firm managed $5.2 billion. 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. The following are the best performers of his investments this year.


    American Tower Corp. (AMT) with a market cap of $49.22 billion has gained 20.9% year to date. The guru's stake represents 1.48% of the company's outstanding shares and 14.02% of his total assets.

      


  • Akre Focus Fund Commentary Third Quarter 2016

    By now, you have no doubt read or listened to tons of opinions about what action you need to take depending on the outcome of the election. As you might expect, we will ignore this “wisdom.” Our reasoning is simple. The United States economy will continue to plug along, and we believe a select group of businesses will continue to perform at an above-average rate. Their business models will not be turned upside down because of an election outcome.

      


  • The Cost of Complexity – Follow-Up Thoughts

    Earlier this month I wrote an article called The Cost of Complexity.


    In that article, I cited an example used by Clayton Christensen – two different auto components plants of the same company, one burdened with the highest overhead cost but produced the lowest quality product and the other exactly the opposite. The key difference was the lower cost higher quality plant only had two different but well-defined product pathways whereas the higher cost lower quality plant had more than 20 different product pathways and none was well defined.

      


  • Akre Capital Buys Fortive, Sells Arlington

    During the second quarter, Akre Capital Management LLC acquired one new holding and sold out of another. The fund bought Fortive Corp. (NYSE:FTV) and sold Arlington Asset Investment Corp. (NYSE:AI).


    Chuck Akre (Trades, Portfolio) founded Akre Capital, where he serves as CEO, in 1989. The fund is team managed. Their investment philosophy is called the “three-legged stool” approach. This approach examines a company’s growth in book value over time, its management and its ability to reinvest its free cash flow in a manner that continues to earn above-average returns. The fund holds stock in 27 companies with a toal size of $4.9 billion. The turnover rate is 16%.

      


  • Akre Focus Fund Commentary 2nd Quarter 2016

    Akre Focus Fund Commentary


    Second Quarter 2016

      


  • Chuck Akre Comments on Colfax

    We wrote in the year-end letter about the negative experience the fund had with Colfax (NYSE:CFX) in 2015. Our experience has been more favorable so far in 2016, but we caution that we are not out of the woods yet. The outlook for industrial end-markets around the world, especially in emerging markets, remains uncertain. Nonetheless, some of the pessimism has eased and the stock market has responded accordingly with the share price smartly off the lows of earlier this year. Our original thesis concerning the company and its founding sponsors, Mitchell and Steven Rales, remains unchanged!

      


  • Akre Focus Fund Commentary First Quarter 2016

    The Akre Focus Fund was up 1.64% for Retail shares and 1.75% for Institutional shares vs. 1.35% for the S&P 500 Total Return for the calendar quarter ending March 31, 2016. We wrote in the year-end letter about the negative experience the fund had with Colfax (NYSE:CFX) in 2015. Our experience has been more favorable so far in 2016, but we caution that we are not out of the woods yet. The outlook for industrial end-markets around the world, especially in emerging markets, remains uncertain. Nonetheless, some of the pessimism has eased and the stock market has responded accordingly with the share price smartly off the lows of earlier this year. Our original thesis concerning the company and its founding sponsors, Mitchell and Steven Rales, remains unchanged!


    You know well that we shy away from making any predictions concerning the market, the economy, and, in this year, political contests. We have no record of having had valuable insights in any of these arenas, and we therefore stay away. Conversely, we do have a substantial track record of identifying and owning outstanding businesses. We contend that our process of identifying and owning such superior businesses at attractive prices was a key ingredient in outperforming the benchmark since the fund's inception.

      


  • Chuck Akre on the Rate of Return

    (Originally posted at Akre Capital Management website January 2015)


    Over the years we have spent quite a lot of time thinking about the question: “What makes a good investment?” We often get the following type of responses when we pose this question to others:

      


  • Undervalued, Predictable Companies Include Monsanto and Western Union

    According to GuruFocus’ All-in-One Screener, the following stocks have a high business predictability rating, and at least five gurus are shareholders in the companies.


    Akamai Technologies Inc. (AKAM)

      


  • O'Reilly and ConAgra Foods Are Outperforming the Market

    The following are some of the stocks that outperformed the S&P 500 Index over the last 12 months and have been bought by gurus during the last quarter.


    O'Reilly Automotive Inc. (ORLY) has a market cap of $25.23 billion, and during the last 12 months has outperformed the S&P 500 Index by 32.2%. Currently five gurus are holding the company that has returned 4% year-to-date and 363% during the last five years. It is now trading with a P/E ratio of 29.22 and according to the DCF calculator it looks undervalued with a margin of safety of 2%.

      


  • Chuck Akre Buys 1 New Stock, Sells 2 Others

    Chuck Akre (Trades, Portfolio) of Akre Capital Management made one new investment during the fourth quarter, purchasing 350,000 shares of Duluth Holdings (NASDAQ:DLTH) for an average price of $15.05 per share, according to data reported by GuruFocus Real Time Picks.

    Duluth markets clothing and accessories such as casual wear and outerwear through its website and catalogs. Duluth’s trade names include Alaskan Hardgear, Ballroom and Bucket Master. The stock is up 10% over the past year and currently trades at 18.7x earnings.  


  • 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

      


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