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All-Weather Chuck Akre Unloads First Quarter

May 17, 2013 | About:
Sally Jones

Sally Jones

49 followers
Akre Capital Managements’s investing Guru Chuck Akre wears at least three hats: CEO, chief investment officer and managing member. Employing an “all-weather” equity strategy, Akre uses a classic value approach in selecting companies for his portfolio, buying companies with high returns on capital and pricing power in excess of input costs. He looks for a strong “people model” or management that operates in the best interest of all shareholders. Akre also shops for extensive reinvestment opportunities. When all of these criteria are met, he makes investments purchased at reasonable valuations. With his investment approach in mind, here’s a review of Chuck Akre’s sells in the first quarter of 2013. Two of his sell-out holdings, Jeffries Group Inc. (JEF) and White River Capital Inc. (RVR), are companies that were recently acquired by other companies.

Sold Out: Artio Global Investors Inc. (ART) – Asset Management

Chuck Akre sold out his position with the global investment advisor, ART, as of March 31, 2013, unloading 800,000 shares at an average price of $2.37 per share, for a 16% gain. According to GuruFocus research, Akre held ART for four quarters; his highest gain was the fourth quarter of 2012 for 21.1%. This trade impacts his portfolio by 0.11%.

The current share price is $2.75 compared to valuations over 10 years:

1368816393484.pngART data by GuruFocus.com

Sold Out: Jeffries Group Inc. (JEF) - Global Investment Banking

Chuck Akre sold out his position with JEF, as of March 31, 2013. This trade impacts his portfolio by 0.32%. The diversified holding company Leucadia National Corporation (LUK) acquired Jeffries Group as of March 1, 2013.

Here’s a look at LUK’s valuation:

1368816208016.pngLUK data by GuruFocus.com

Sold Out: White River Capital Inc. (RVR) – Financial Services

Chuck Akre sold out his position with RVR, as of March 31, 2013. This trade impacts his portfolio by 0.14%. In February 2013, Parthenon Capital Partners acquired White River and its subsidiary Coastal Credit.

Reduced: Annaly Capital Management Inc. (NLY) – REIT - Diversified

Chuck Akre sold out his position with NLY by 13.26%, as of March 31, 2013, unloading 336,116 shares at an average price of $15.11 per share, for a loss of 0.9%. According to GuruFocus research, Akre held NLY for 11 quarters; his only gain was in the fourth quarter of 2008 for 8.5%. Every quarter since has shown a loss.

The current share price is $14.97 compared to valuations over 10 years:

1368816319729.pngNLY data by GuruFocus.com

Guru Chuck Akre is the founder of Akre Capital Management. He was named to Barron's "Top 100 Mutual Fund Managers" list from 2003 to 2006, one of only two small cap growth managers to make the list for four consecutive years. The current portfolio of Chuck Akre of Akre Capital Management lists 37 stocks, four of them new, with a total value of $1.76 billion and a quarter-over-quarter turnover of 11%. Akre is known for his long-term equity strategy and for being tax efficient. His portfolio turnover is considered extremely low across portfolio management history.



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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 4.5/5 (6 votes)

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