Akre Focus Fund 4th Quarter 2012 Commentary
All of our internal conversations lead us back to the allure of the "three legged stool" with which you are familiar. We spend our "practice" time searching for superior businesses, run by skilled and shareholder friendly managements where both a history of and opportunity for outstanding reinvestment of all the free cash generated by the business exists at an attractive price. This process is the core of our approach, and is therefore largely responsible for our outcomes.
Significantly, this approach has caused the investment outcomes generally to continue to be "above average." You may recall that in 2011, our investment return was in the low double digits, while the market was in the low single digits. In 2012, these returns are again generally in the low teens, and more closely aligned with the market's return for the year. Importantly, we remain highly confident about the businesses owned in the portfolio, and look forward to them continuing to demonstrate their potential to generate above average results, which over time should yield above average price performance. This strategy has worked well for us in the past.
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Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling (877) 862-9556. The Fund's annual operating expense (gross) for the Retail Class shares is 1.40% and 1.15% for the Institutional Class shares.
As always we thank you for the trust you have placed with our firm, entrusting some portion of your assets with us to manage. Know that we treat each dollar as if it were our own, striving to achieve an above average return while seeking to incur a below average level of risk.
Mutual fund investing involves risk. Principal loss is possible. The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than a diversified fund. The Fund invests in small and medium capitalization companies, which involve additional risks such as limited liquidity and greater volatility than larger capitalization companies.
The Fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The summary and statutory prospectus contains this and other important information about the investment company and it may be obtained by calling (877) 862-9556 or visiting www.akrefund.com. Read it carefully before investing.
Fund holdings and sector allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security.
The S&P 500 is a broad based unmanaged index of 500 stocks, which is widely recognized as Representative of the equity market in general. It is not possible to invest directly in an index.