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.
Akre’s most significant third-quarter transaction was his addition of 1,029,479 shares to his existing stake in American Tower Corp. (AMT, Financial), a Boston-based owner and operator of wireless and broadcast communications sites, for an average price of $94.15 per share. The deal had a 2.1% impact on Akre’s portfolio.
American Tower has a market cap of $41.66 billion and an enterprise value of $58.45 billion. It has a P/E of 72.9, a forward P/E of 41.3, a P/B of 6.3 and a P/S of 9.0. GuruFocus has given American Tower a Financial Strength rating of 5/10 and a Profitability and Growth rating of 8/10.
Akre is American Tower’s leading shareholder among the gurus. Jim Simons (Trades, Portfolio), Ron Baron (Trades, Portfolio), Chris Davis (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Tom Gayner (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) have shares of American Tower in their portfolios.
American Tower sold for $98.35 per share Tuesday afternoon.
Akre added 479,647 shares to his stake in Enstar Group Ltd. (ESGR, Financial), a Montgomery, Ala.-based insurance management and consulting company, for an average price of $154.95 per share. The transaction had a 1.67% impact on Akre’s portfolio.
Enstar Group has a market cap of $3 billion and an enterprise value of $2.56 billion. It has a P/E of 14, a forward P/E of 13.5, a P/B of 1.2 and a P/S of 2.9. GuruFocus has given Enstar Group a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.
Akre is Enstar Group’s leading shareholder among the gurus. HOTCHKIS & WILEY, Diamond Hill Capital (Trades, Portfolio), Arnold Van Den Berg (Trades, Portfolio) and Jim Simons (Trades, Portfolio) have shares of Enstar Group in their portfolios.
Tuesday afternoon Enstar Group sold for $155.71 per share.
Akre added 1,073,660 shares to his stake in CarMax Inc. (KMX, Financial), a Virginia-based new and used car retailer, for an average price of $62.65 per share. The deal had a 1.48% impact on Akre’s portfolio.
CarMax has a market cap of $11.27 billion and an enterprise value of $20.98 billion. It has a P/E of 18.9, a forward P/E of 18, a P/B of 3.6 and a P/S of 0.8. GuruFocus has given CarMax a Financial Strength rating of 8/10 and a Profitability and Growth rating of 6/10.
PRIMECAP Management (Trades, Portfolio), Chris Davis (Trades, Portfolio), Tom Gayner (Trades, Portfolio), Ron Baron (Trades, Portfolio), First Pacific Advisors (Trades, Portfolio), Jim Simons (Trades, Portfolio), Dodge & Cox and Steven Cohen (Trades, Portfolio) have shares of CarMax in their portfolios.
CarMax sold for $55.62 per share Tuesday afternoon.
Akre acquired 1,875,000 shares of LKQ Corp. (LKQ, Financial), a Chicago-based auto parts company, more than tripling his stake for an average price of $30.46 per share. The transaction had a 1.23% impact on Akre’s portfolio.
LKQ has a market cap of $9.01 billion and an enterprise value of $10.49 billion. It has a P/E of 22.1, a forward P/E of 18.5, a P/B of 3 and a P/S of 1.3. GuruFocus has given LKQ a Financial Strength rating of 9/10 and a Profitability and Growth rating of 7/10.
David Rolfe (Trades, Portfolio), Columbia Wanger (Trades, Portfolio), Alan Fournier (Trades, Portfolio), Meridian Funds (Trades, Portfolio), Ron Baron (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Jim Simons (Trades, Portfolio), Ruane Cunniff (Trades, Portfolio), Ray Dalio (Trades, Portfolio), Chuck Royce (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) have shares of LKQ in their portfolios.
Tuesday afternoon LKQ sold for $29.51 per share.
Akre purchased 596,770 shares of Dollar Tree Stores Inc. (DLTR, Financial), a Chesapeake, Va.-based discount retailer, for an average price of $75.09 per share. The deal had a 0.92% impact on Akre’s portfolio.
Dollar Tree has a market cap of $15.08 billion and an enterprise value of $22.12 billion. It has a P/E of 42.3, a forward P/E of 22.9, a P/B of 3.7 and a P/S of 1.4. GuruFocus has given Dollar Tree a Financial Strength rating of 6/10 and a Profitability and Growth rating of 8/10.
Steve Mandel (Trades, Portfolio), Alan Fournier (Trades, Portfolio), John Burbank (Trades, Portfolio), Meridian Funds (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Steven Cohen (Trades, Portfolio), RS Investment Management (Trades, Portfolio), Signature Select Canadian Fund (Trades, Portfolio), Jim Simons (Trades, Portfolio), John Keeley (Trades, Portfolio), Chuck Royce (Trades, Portfolio) and Jeremy Grantham (Trades, Portfolio) have shares of Dollar Tree in their portfolios.
Dollar Tree sold for $64.23 per share Tuesday afternoon.
Akre acquired 1,206,911 shares of Colfax Corp. (CFX, Financial), an Annapolis Junction, Md.-based machinery company, for an average price of $38.55 per share. The transaction had a 0.84% impact on Akre’s portfolio.
Colfax has a market cap of $3.21 billion and an enterprise value of $4.74 billion. It has a P/E of 15.9, a forward P/E of 15.9, a P/B of 1 and a P/S of 0.8. GuruFocus has given Colfax a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.
Akre is Colfax’s leading shareholder among the gurus. Diamond Hill Capital (Trades, Portfolio), Ron Baron (Trades, Portfolio), Tom Gayner (Trades, Portfolio), Murray Stahl (Trades, Portfolio), Ruane Cunniff (Trades, Portfolio), Arnold Van Den Berg (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Ray Dalio (Trades, Portfolio) and Chuck Royce (Trades, Portfolio) have shares of Colfax in their portfolios.
Tuesday afternoon Colfax sold for $25.86 per share.
Akre also added to his stake in MasterCard Inc. (MA, Financial), a Purchase, N.Y.-based financial services company. Akre purchased 376,339 shares for an average price of $93.97 per share. The deal had a 0.79% impact on Akre’s portfolio.
MasterCard has a market cap of $110.11 billion and an enterprise value of $106.53 billion. It has a P/E of 30.2, a forward P/E of 25.5, a P/B of 17.6 and a P/S of 11.7. GuruFocus has given MasterCard a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.
Tom Russo (Trades, Portfolio), Steve Mandel (Trades, Portfolio), Ruane Cunniff (Trades, Portfolio), Andreas Halvorsen (Trades, Portfolio), Manning & Napier Advisors Inc., Warren Buffett (Trades, Portfolio), Bill Nygren (Trades, Portfolio), First Eagle Investment (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Jim Simons (Trades, Portfolio), Chase Coleman (Trades, Portfolio), John Griffin (Trades, Portfolio), Charles de Vaulx (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio), Wallace Weitz (Trades, Portfolio), Westport Asset Management (Trades, Portfolio), Tweedy Browne (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Ron Baron (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Tom Gayner (Trades, Portfolio), Murray Stahl (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Jeff Auxier (Trades, Portfolio), Robert Olstein (Trades, Portfolio), Julian Robertson (Trades, Portfolio), Chris Davis (Trades, Portfolio), RS Investment Management (Trades, Portfolio) and Lee Ainslie (Trades, Portfolio) have shares of MasterCard in their portfolios.
MasterCard sold for $98.07 per share Tuesday afternoon.
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