GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Chuck Akre's New Stock Picks

August 16, 2012 | About:
Holly LaFon

Holly LaFon

257 followers
Chuck Akre is a veteran investor who established his firm, Akre Capital Management, in 1999. In the last ten years, he beat the S&P 500 with his cumulative return of 187.9%, compared to the index’s 34.9%. When selecting stocks, Akre looks for companies that will gain real economic value and “that can

and do compound the shareholders capital at above average rates,” as he says in his second-quarter letter.

In the first quarter, he found just four such stocks: DirecTV (DTV), Bank of America Warrants (BAC.WS.A), Higher One Holdings (ONE) and Artio Global Investors (ART).

DirecTV (DTV)

Akre bought 900,000 shares of DirecTV at an average price of $47 in the second quarter of 2012. The stock’s price has increased 10% since then.

DirecTV is a provider of digital multichannel television entertainment in the United States and Latin America. DirecTV has a market cap of $34.13 billion; its shares were traded at around $51.66 with a P/E ratio of 13.4 and P/S ratio of 1.3. DirecTV had an annual average earnings growth of 33.4% over the past 10 years. GuruFocus rated DirecTV the business predictability rank of 2.5-star.

Bank of America Warrants (BAC.WS.A)

Akre purchased 481,000 Bank of America Warrants in the second quarter.

Higher One Holdings Inc. (ONE)

Akre bought 90,690 shares of Higher One Holdings at an average price of $14 in the second quarter of 2012. The stock has since dropped 19% from that price.

Higher One Inc. is engaged in providing technology and payment services to the higher education industry. Higher One Holdings Inc has a market cap of $636 million; its shares were traded at around $11.34 with a P/E ratio of 18.7 and P/S ratio of 3.6.

Artio Global Investors (ART)

Akre purchased 275,000 shares of Artio Global Investors at an average price of $4 per share in the second quarter. The stock has since declined 18% from that price.

Artio Global Investors Inc. is the holding company of Artio Global Management LLC, a registered investment adviser headquartered in New York City that actively invests in global equity and fixed income markets, primarily for institutional and intermediary clients. Artio Global Investors Inc. has a market cap of $192.7 million; its shares were traded at around $3.28 with a P/E ratio of 5.4 and P/S ratio of 0.7. The dividend yield of Artio Global Investors Inc. stocks is 2.5%.

Chuck Akre is a veteran investor who established his firm, Akre Capital Management, in 1999. In the last ten years, he beat the S&P 500 with his cumulative return of 187.9%, compared to the index’s 34.9%. When selecting stocks, Akre looks for companies that will gain real economic value and “that can

and do compound the shareholders capital at above average rates,” as he says in his second-quarter letter.

In the first quarter, he found just four such stocks: DirecTV (DTV), Bank of America Warrants (BAC.WS.A), Higher One Holdings (ONE) and Artio Global Investors (ART).

DirecTV (DTV)

Akre bought 900,000 shares of DirecTV at an average price of $47 in the second quarter of 2012. The stock’s price has increased 10% since then.

DirecTV is a provider of digital multichannel television entertainment in the United States and Latin America. DirecTV has a market cap of $34.13 billion; its shares were traded at around $51.66 with a P/E ratio of 13.4 and P/S ratio of 1.3. DirecTV had an annual average earnings growth of 33.4% over the past 10 years. GuruFocus rated DirecTV the business predictability rank of 2.5-star.

Bank of America Warrants (BAC.WS.A)

Akre purchased 481,000 Bank of America Warrants in the second quarter.

Higher One Holdings Inc. (ONE)

Akre bought 90,690 shares of Higher One Holdings at an average price of $14 in the second quarter of 2012. The stock has since dropped 19% from that price.

Higher One Inc. is engaged in providing technology and payment services to the higher education industry. Higher One Holdings Inc has a market cap of $636 million; its shares were traded at around $11.34 with a P/E ratio of 18.7 and P/S ratio of 3.6.

Artio Global Investors (ART)

Akre purchased 275,000 shares of Artio Global Investors at an average price of $4 per share in the second quarter. The stock has since declined 18% from that price.

Artio Global Investors Inc. is the holding company of Artio Global Management LLC, a registered investment adviser headquartered in New York City that actively invests in global equity and fixed income markets, primarily for institutional and intermediary clients. Artio Global Investors Inc. has a market cap of $192.7 million; its shares were traded at around $3.28 with a P/E ratio of 5.4 and P/S ratio of 0.7. The dividend yield of Artio Global Investors Inc. stocks is 2.5%.

Rating: 4.3/5 (4 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK