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. (WMIH, Financial). It also sold out of three tiny holdings: Annaly Capital Management Inc. (NLY, Financial), Williams Companies Inc. (WMB, Financial) and NuStar GP Holdings LLC (NSH, Financial).
More significantly, he boosted his stakes in some of his biggest and highest conviction companies: American Tower Corp. (AMT, Financial), MasterCard Inc. (MA, Financial), Moody’s Corp. (MCO, Financial), Dollar Tree Stores Inc. (DLTR, Financial) and Roper Technologies Inc. (ROP, Financial).
American Tower Corp. (AMT, Financial)
American Tower Corp. is Akre’s largest position, taking over 12.68% of his portfolio. In quarter three, he increased his shareholding by 19.5% to 6,303,493 shares. The company’s share price average for the third quarter was $94.
American Tower Corp. was incorporated in the State of Delaware on July 17, 1995. American Tower Corp. has a market cap of $41.23 billion; its shares were traded at around $97.35 with a P/E ratio of 72.12 and P/S ratio of 8.96. The dividend yield of American Tower Corp. stocks is 1.73%. American Tower Corp. had an annual average earnings growth of 13.8% over the past 10 years. GuruFocus rated American Tower Corp. the business predictability rank of 3.5-star.
MasterCard Inc. (MA, Financial)
Akre increased his position in second-largest holding MasterCard Inc. by 8.69% in the third quarter to 4,705,134 shares. The stocks quarterly price average was $94 per share.
MasterCard Inc. was incorporated as a Delaware corporation in May 2001. MasterCard Inc. has a market cap of $109.84 billion; its shares were traded at around $97.83 with a P/E ratio of 30.04 and P/S ratio of 11.66. The dividend yield of MasterCard Inc. stocks is 0.65%. MasterCard Inc. had an annual average earnings growth of 20.4% over the past five years.
Moody’s Corp. (MCO, Financial)
Akre increased his fourth-largest position Moody’s Corp. by 1.19% in the third quarter to 3,605,620 shares. The average price was $109 per share.
Moody's Corp. was founded in 1909. The company is a provider of credit ratings, credit and economic related research, data and analytical tools, software solutions and related risk management services, quantitative credit risk measures, financial services training and certification services and outsourced research and analytical services to institutional customers.
Moody's Corp. has a market cap of $19.33 billion; its shares were traded at around $97.78 with a P/E ratio of 21.06 and P/S ratio of 5.77. The dividend yield of Moody's Corp. stocks is 1.33%. Moody's Corp. had an annual average earnings growth of 7.8% over the past 10 years. GuruFocus rated Moody's Corp. the business predictability rank of 2.5-star.
Dollar Tree Stores Inc. (DLTR, Financial)
Akre increased his holding in his fifth-largest position, Dollar Tree Stores Inc. (DLTR, Financial) by 16.8% to 4,148,216. The company’s average price per share was $75.
Dollar Tree Stores Inc. is an operator of discount variety stores offering merchandise at the fixed price of $1. Dollar Tree Stores Inc. has a market cap of $15.12 billion; its shares were traded at around $64.42 with a P/E ratio of 42.35 and P/S ratio of 1.38. Dollar Tree Stores Inc. had an annual average earnings growth of 18.8% over the past 10 years. GuruFocus rated Dollar Tree Stores Inc. the business predictability rank of 5-star.
Roper Technologies Inc. (ROP, Financial)
Akre increased his holding of his sixth largest position, Roper Technologies Inc., by 5.76% to 1,349,136 shares. The company’s price averaged $165 per share.
Roper Technologies Inc. was incorporated on Dec. 17, 1981 under the laws of the State of Delaware as Roper Industries Inc. Roper Technologies Inc. has a market cap of $18.55 billion; its shares were traded at around $184.04 with a P/E ratio of 27.68 and P/S ratio of 5.2. The dividend yield of Roper Technologies Inc stocks is 0.54%. Roper Technologies Inc. had an annual average earnings growth of 13.8% over the past 10 years. GuruFocus rated Roper Technologies Inc. the business predictability rank of 5-star.
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