This is the Q3 portfolio update for value investor Chuck Akre. Interesting, he favors Mastercard, and sold Visa.
For over the past 10 years, Chuck Akre has more than doubled his investors’ money. His portfolio gained more 135% until 2009, while the market lost more than 8%.
Chuck Akre had a bad year in 2008, losing 43%. That taught him a lot of lessons. He changed his strategy from strict bottom-up value investing to a value investor who also pays attention to macro picture, and he said I am trying to figure out how not to give back so much in adverse times .
Akre joins a handful of “bottom-up” stock pickers who say they can no longer afford to tune out the larger economic picture after underestimating the financial crisis. Retail investors have pulled $180 billion from U.S. stock mutual funds since 2007, when the crisis started in subprime mortgages before spreading across the global economy and financial markets.
Chuck Akre buys Mastercard Inc., Ross Stores Inc., Lamar Advertising Company, Carter's Inc., Carmax Inc., Tradestation Group Inc, Greenlight Capital Re Ltd., Realpage Inc., Entertainment Properties Trust, sells Transatlantic Holdings Inc., Visa Inc., Penn National Gaming Inc., The Hartford Financial Services Group In, First Financial Holdings Inc. during the 3-months ended 09/30/2010, according to the most recent filings of his investment company, Akre Capital Management, LLC. As of 09/30/2010, Akre Capital Management, LLC owns 38 stocks with a total value of $395 million. These are the details of the buys and sells.
This is the sector weightings of his portfolio:
These are the top 5 holdings of Chuck Akre
Added: Mastercard Inc. (MA, Financial)
Chuck Akre added to his holdings in Mastercard Inc. by 100%. His purchase prices were between $191.98 and $223, with an estimated average price of $208.23. The impact to his portfolio due to this purchase was 1.7%. His holdings were 60,000 shares as of 09/30/2010.
MASTERCARD INCORPORATED advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. Mastercard Inc. has a market cap of $31.82 billion; its shares were traded at around $243.17 with a P/E ratio of 18.26 and P/S ratio of 6.24. The dividend yield of Mastercard Inc. stocks is 0.25%.
Added: Ross Stores Inc. (ROST, Financial)
Chuck Akre added to his holdings in Ross Stores Inc. by 13.92%. His purchase prices were between $49.03 and $56.44, with an estimated average price of $52.72. The impact to his portfolio due to this purchase was 0.83%. His holdings were 489,055 shares as of 09/30/2010.
Ross Stores, Inc. operates a chain of off-price retail apparel and home accessories stores, which target value conscious men and women between the ages of 25 and 54 in middle-to-upper middle income households. Ross Stores Inc. has a market cap of $7.7 billion; its shares were traded at around $63.89 with a P/E ratio of 15.1 and P/S ratio of 1.07. The dividend yield of Ross Stores Inc. stocks is 1%. Ross Stores Inc. had an annual average earning growth of 11.3% over the past 10 years. GuruFocus rated Ross Stores Inc. the business predictability rank of 3.5-star.
Added: Lamar Advertising Company (LAMR, Financial)
Chuck Akre added to his holdings in Lamar Advertising Company by 8.78%. His purchase prices were between $24.29 and $32.14, with an estimated average price of $28.33. The impact to his portfolio due to this purchase was 0.8%. His holdings were 1,238,320 shares as of 09/30/2010.
Lamar Advertising Company is one of the largest and most experienced owners and operators of outdoor advertising structures in the United States. Lamar Advertising Company has a market cap of $3.06 billion; its shares were traded at around $33.12 with and P/S ratio of 2.89. Lamar Advertising Company had an annual average earning growth of 6.3% over the past 10 years. GuruFocus rated Lamar Advertising Company the business predictability rank of 4.5-star.
Added: Carmax Inc. (KMX, Financial)
Chuck Akre added to his holdings in Carmax Inc. by 7.32%. His purchase prices were between $18.67 and $27.68, with an estimated average price of $21.66. The impact to his portfolio due to this purchase was 0.24%. His holdings were 490,620 shares as of 09/30/2010.
CarMax Group is a subsidiary of Circuit City Stores, Inc. Carmax Inc. has a market cap of $7.42 billion; its shares were traded at around $33 with a P/E ratio of 21.85 and P/S ratio of 0.99. Carmax Inc. had an annual average earning growth of 18.7% over the past 5 years.
Added: Tradestation Group Inc (TRAD, Financial)
Chuck Akre added to his holdings in Tradestation Group Inc by 35%. His purchase prices were between $5.57 and $7.01, with an estimated average price of $6.4. The impact to his portfolio due to this purchase was 0.17%. His holdings were 405,000 shares as of 09/30/2010.
TradeStation Group, Inc., through its operating subsidiary, TradeStation Securities, Inc. Tradestation Group Inc has a market cap of $253.06 million; its shares were traded at around $6.25 with a P/E ratio of 26.04 and P/S ratio of 1.88. Tradestation Group Inc had an annual average earning growth of 14.3% over the past 5 years.
Added: Greenlight Capital Re Ltd. (GLRE, Financial)
Chuck Akre added to his holdings in Greenlight Capital Re Ltd. by 85.8%. His purchase prices were between $22.35 and $26.69, with an estimated average price of $24.48. The impact to his portfolio due to this purchase was 0.15%. His holdings were 50,000 shares as of 09/30/2010.
GREENLIGHT CAPITAL REINSURANCE LTD. is an AM Best `A-` (Excellent) rated specialty property and casualty reinsurance company based in the Cayman Islands. Greenlight Capital Re Ltd. has a market cap of $868.16 million; its shares were traded at around $28.75 with a P/E ratio of 11.69 and P/S ratio of 2.07.
New Purchase: Carter's Inc. (CRI, Financial)
Chuck Akre initiated holdings in Carter's Inc.. His purchase prices were between $22.34 and $26.98, with an estimated average price of $24.68. The impact to his portfolio due to this purchase was 0.67%. His holdings were 100,000 shares as of 09/30/2010.
Carters Inc markets baby apparel and young children's apparel in the United States. Carter's Inc. has a market cap of $1.72 billion; its shares were traded at around $28.97 with a P/E ratio of 11.73 and P/S ratio of 1.08. Carter's Inc. had an annual average earning growth of 11.8% over the past 5 years.
New Purchase: Realpage Inc. (RP, Financial)
Chuck Akre initiated holdings in Realpage Inc.. His purchase prices were between $14.52 and $19.72, with an estimated average price of $17.47. The impact to his portfolio due to this purchase was 0.12%. His holdings were 25,000 shares as of 09/30/2010.
RealPage, Inc. provides on-demand property management solutions that enable owners and managers of single-family and a wide variety of multi-family rental property types to manage their marketing, pricing, screening, leasing, accounting, purchasing and other property operations. Realpage Inc. has a market cap of $1.88 billion; its shares were traded at around $30.17 .
New Purchase: Entertainment Properties Trust (EPR, Financial)
Chuck Akre initiated holdings in Entertainment Properties Trust. His purchase prices were between $36.32 and $46.21, with an estimated average price of $42.26. The impact to his portfolio due to this purchase was 0.06%. His holdings were 5,050 shares as of 09/30/2010.
Entertainment Properties Trust is a Real Estate Investment Trust whose principal business strategy is to acquire and develop a diversified portfolio of high-quality properties leased to entertainment-related business operators. Entertainment Properties Trust has a market cap of $2.21 billion; its shares were traded at around $47.61 with a P/E ratio of 14.52 and P/S ratio of 8.17. The dividend yield of Entertainment Properties Trust stocks is 5.46%. Entertainment Properties Trust had an annual average earning growth of 3.7% over the past 10 years.
Reduced: Penn National Gaming Inc. (PENN, Financial)
Chuck Akre reduced to his holdings in Penn National Gaming Inc. by 21.95%. His sale prices were between $22.44 and $30.68, with an estimated average price of $27.47. The impact to his portfolio due to this sale was -0.61%. Chuck Akre still held 289,608 shares as of 09/30/2010.
Penn National Gaming, Inc. are a diversified gaming and pari-mutuel wagering company. Penn National Gaming Inc. has a market cap of $2.72 billion; its shares were traded at around $34.97 with a P/E ratio of 41.14 and P/S ratio of 1.15.
Sold Out: Transatlantic Holdings Inc. (TRH, Financial)
Chuck Akre sold out his holdings in Transatlantic Holdings Inc.. His sale prices were between $46.6 and $50.87, with an estimated average price of $48.38.
Transatlantic Holdings, through its wholly-owned subsidiaries, Transatlantic Reinsurance Company, Trans Re Zurich, and Putnam, offers reinsurance capacity for a full range of property and casualty products on a treaty and facultative basis, directly and through brokers, to insurance and reinsurance companies, in both the domestic and international markets. Transatlantic Holdings Inc. has a market cap of $3.3 billion; its shares were traded at around $51.74 with a P/E ratio of 8.91 and P/S ratio of 0.74. The dividend yield of Transatlantic Holdings Inc. stocks is 1.62%.
Sold Out: Visa Inc. (V, Financial)
Chuck Akre sold out his holdings in Visa Inc.. His sale prices were between $65.48 and $77.38, with an estimated average price of $72.17.
VISA operates the world's largest retail electronic payments network and is one of the most recognized global financial services brands. Visa Inc. has a market cap of $64.24 billion; its shares were traded at around $76.94 with a P/E ratio of 19.88 and P/S ratio of 7.97. The dividend yield of Visa Inc. stocks is 0.65%.
Sold Out: The Hartford Financial Services Group In (HIG)
Chuck Akre sold out his holdings in The Hartford Financial Services Group In. His sale prices were between $19.09 and $24.12, with an estimated average price of $22.16.
Hartford Financial Services is one of the nation's largest investment and insurance companies, offers a complete line of insurance and financial service products to customers all over the world. The Hartford Financial Services Group In has a market cap of $10.84 billion; its shares were traded at around $24.4 with a P/E ratio of 6.1 and P/S ratio of 0.44. The dividend yield of The Hartford Financial Services Group In stocks is 0.82%.
Sold Out: First Financial Holdings Inc. (FFCH)
Chuck Akre sold out his holdings in First Financial Holdings Inc.. His sale prices were between $9 and $12.86, with an estimated average price of $10.65.
FIRST FINANCIAL HOLDINGS INC. acts as a financial intermediary by attracting deposits from the general public and using such funds, together with borrowings and other funds, to originate first mortgage loans on residential properties located in its primary market areas. First Financial Holdings Inc. has a market cap of $179.32 million; its shares were traded at around $10.85 with and P/S ratio of 0.71. The dividend yield of First Financial Holdings Inc. stocks is 1.84%.
For over the past 10 years, Chuck Akre has more than doubled his investors’ money. His portfolio gained more 135% until 2009, while the market lost more than 8%.
Chuck Akre had a bad year in 2008, losing 43%. That taught him a lot of lessons. He changed his strategy from strict bottom-up value investing to a value investor who also pays attention to macro picture, and he said I am trying to figure out how not to give back so much in adverse times .
Akre joins a handful of “bottom-up” stock pickers who say they can no longer afford to tune out the larger economic picture after underestimating the financial crisis. Retail investors have pulled $180 billion from U.S. stock mutual funds since 2007, when the crisis started in subprime mortgages before spreading across the global economy and financial markets.
Chuck Akre buys Mastercard Inc., Ross Stores Inc., Lamar Advertising Company, Carter's Inc., Carmax Inc., Tradestation Group Inc, Greenlight Capital Re Ltd., Realpage Inc., Entertainment Properties Trust, sells Transatlantic Holdings Inc., Visa Inc., Penn National Gaming Inc., The Hartford Financial Services Group In, First Financial Holdings Inc. during the 3-months ended 09/30/2010, according to the most recent filings of his investment company, Akre Capital Management, LLC. As of 09/30/2010, Akre Capital Management, LLC owns 38 stocks with a total value of $395 million. These are the details of the buys and sells.
- New Purchases: CRI, RP, EPR,
- Added Positions: MA, ROST, LAMR, KMX, TRAD, GLRE,
- Reduced Positions: PENN,
- Sold Out: TRH, V, HIG, FFCH,
This is the sector weightings of his portfolio:
| Consumer Services | 45.3% |
| Financials | 32.1% |
| Technology | 13.9% |
| Health Care | 0.9% |
| Oil & Gas | 0.9% |
| Consumer Goods | 0.7% |
| Industrials | 0.3% |
These are the top 5 holdings of Chuck Akre
- American Tower Corp. (AMT) - 1,071,849 shares, 13.9% of the total portfolio. Shares added by 0.21%
- Markel Corp. (MKL) - 115,096 shares, 10.03% of the total portfolio. Shares reduced by 0.1%
- Lamar Advertising Company (LAMR) - 1,238,320 shares, 9.97% of the total portfolio. Shares added by 8.78%
- DOLLAR TREE, INC. (DLTR) - 610,792 shares, 7.54% of the total portfolio. Shares reduced by 0.05%
- Enstar Group Ltd. (ESGR) - 395,620 shares, 7.27% of the total portfolio. Shares reduced by 0.21%
Added: Mastercard Inc. (MA, Financial)
Chuck Akre added to his holdings in Mastercard Inc. by 100%. His purchase prices were between $191.98 and $223, with an estimated average price of $208.23. The impact to his portfolio due to this purchase was 1.7%. His holdings were 60,000 shares as of 09/30/2010.
MASTERCARD INCORPORATED advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. Mastercard Inc. has a market cap of $31.82 billion; its shares were traded at around $243.17 with a P/E ratio of 18.26 and P/S ratio of 6.24. The dividend yield of Mastercard Inc. stocks is 0.25%.
Added: Ross Stores Inc. (ROST, Financial)
Chuck Akre added to his holdings in Ross Stores Inc. by 13.92%. His purchase prices were between $49.03 and $56.44, with an estimated average price of $52.72. The impact to his portfolio due to this purchase was 0.83%. His holdings were 489,055 shares as of 09/30/2010.
Ross Stores, Inc. operates a chain of off-price retail apparel and home accessories stores, which target value conscious men and women between the ages of 25 and 54 in middle-to-upper middle income households. Ross Stores Inc. has a market cap of $7.7 billion; its shares were traded at around $63.89 with a P/E ratio of 15.1 and P/S ratio of 1.07. The dividend yield of Ross Stores Inc. stocks is 1%. Ross Stores Inc. had an annual average earning growth of 11.3% over the past 10 years. GuruFocus rated Ross Stores Inc. the business predictability rank of 3.5-star.
Added: Lamar Advertising Company (LAMR, Financial)
Chuck Akre added to his holdings in Lamar Advertising Company by 8.78%. His purchase prices were between $24.29 and $32.14, with an estimated average price of $28.33. The impact to his portfolio due to this purchase was 0.8%. His holdings were 1,238,320 shares as of 09/30/2010.
Lamar Advertising Company is one of the largest and most experienced owners and operators of outdoor advertising structures in the United States. Lamar Advertising Company has a market cap of $3.06 billion; its shares were traded at around $33.12 with and P/S ratio of 2.89. Lamar Advertising Company had an annual average earning growth of 6.3% over the past 10 years. GuruFocus rated Lamar Advertising Company the business predictability rank of 4.5-star.
Added: Carmax Inc. (KMX, Financial)
Chuck Akre added to his holdings in Carmax Inc. by 7.32%. His purchase prices were between $18.67 and $27.68, with an estimated average price of $21.66. The impact to his portfolio due to this purchase was 0.24%. His holdings were 490,620 shares as of 09/30/2010.
CarMax Group is a subsidiary of Circuit City Stores, Inc. Carmax Inc. has a market cap of $7.42 billion; its shares were traded at around $33 with a P/E ratio of 21.85 and P/S ratio of 0.99. Carmax Inc. had an annual average earning growth of 18.7% over the past 5 years.
Added: Tradestation Group Inc (TRAD, Financial)
Chuck Akre added to his holdings in Tradestation Group Inc by 35%. His purchase prices were between $5.57 and $7.01, with an estimated average price of $6.4. The impact to his portfolio due to this purchase was 0.17%. His holdings were 405,000 shares as of 09/30/2010.
TradeStation Group, Inc., through its operating subsidiary, TradeStation Securities, Inc. Tradestation Group Inc has a market cap of $253.06 million; its shares were traded at around $6.25 with a P/E ratio of 26.04 and P/S ratio of 1.88. Tradestation Group Inc had an annual average earning growth of 14.3% over the past 5 years.
Added: Greenlight Capital Re Ltd. (GLRE, Financial)
Chuck Akre added to his holdings in Greenlight Capital Re Ltd. by 85.8%. His purchase prices were between $22.35 and $26.69, with an estimated average price of $24.48. The impact to his portfolio due to this purchase was 0.15%. His holdings were 50,000 shares as of 09/30/2010.
GREENLIGHT CAPITAL REINSURANCE LTD. is an AM Best `A-` (Excellent) rated specialty property and casualty reinsurance company based in the Cayman Islands. Greenlight Capital Re Ltd. has a market cap of $868.16 million; its shares were traded at around $28.75 with a P/E ratio of 11.69 and P/S ratio of 2.07.
New Purchase: Carter's Inc. (CRI, Financial)
Chuck Akre initiated holdings in Carter's Inc.. His purchase prices were between $22.34 and $26.98, with an estimated average price of $24.68. The impact to his portfolio due to this purchase was 0.67%. His holdings were 100,000 shares as of 09/30/2010.
Carters Inc markets baby apparel and young children's apparel in the United States. Carter's Inc. has a market cap of $1.72 billion; its shares were traded at around $28.97 with a P/E ratio of 11.73 and P/S ratio of 1.08. Carter's Inc. had an annual average earning growth of 11.8% over the past 5 years.
New Purchase: Realpage Inc. (RP, Financial)
Chuck Akre initiated holdings in Realpage Inc.. His purchase prices were between $14.52 and $19.72, with an estimated average price of $17.47. The impact to his portfolio due to this purchase was 0.12%. His holdings were 25,000 shares as of 09/30/2010.
RealPage, Inc. provides on-demand property management solutions that enable owners and managers of single-family and a wide variety of multi-family rental property types to manage their marketing, pricing, screening, leasing, accounting, purchasing and other property operations. Realpage Inc. has a market cap of $1.88 billion; its shares were traded at around $30.17 .
New Purchase: Entertainment Properties Trust (EPR, Financial)
Chuck Akre initiated holdings in Entertainment Properties Trust. His purchase prices were between $36.32 and $46.21, with an estimated average price of $42.26. The impact to his portfolio due to this purchase was 0.06%. His holdings were 5,050 shares as of 09/30/2010.
Entertainment Properties Trust is a Real Estate Investment Trust whose principal business strategy is to acquire and develop a diversified portfolio of high-quality properties leased to entertainment-related business operators. Entertainment Properties Trust has a market cap of $2.21 billion; its shares were traded at around $47.61 with a P/E ratio of 14.52 and P/S ratio of 8.17. The dividend yield of Entertainment Properties Trust stocks is 5.46%. Entertainment Properties Trust had an annual average earning growth of 3.7% over the past 10 years.
Reduced: Penn National Gaming Inc. (PENN, Financial)
Chuck Akre reduced to his holdings in Penn National Gaming Inc. by 21.95%. His sale prices were between $22.44 and $30.68, with an estimated average price of $27.47. The impact to his portfolio due to this sale was -0.61%. Chuck Akre still held 289,608 shares as of 09/30/2010.
Penn National Gaming, Inc. are a diversified gaming and pari-mutuel wagering company. Penn National Gaming Inc. has a market cap of $2.72 billion; its shares were traded at around $34.97 with a P/E ratio of 41.14 and P/S ratio of 1.15.
Sold Out: Transatlantic Holdings Inc. (TRH, Financial)
Chuck Akre sold out his holdings in Transatlantic Holdings Inc.. His sale prices were between $46.6 and $50.87, with an estimated average price of $48.38.
Transatlantic Holdings, through its wholly-owned subsidiaries, Transatlantic Reinsurance Company, Trans Re Zurich, and Putnam, offers reinsurance capacity for a full range of property and casualty products on a treaty and facultative basis, directly and through brokers, to insurance and reinsurance companies, in both the domestic and international markets. Transatlantic Holdings Inc. has a market cap of $3.3 billion; its shares were traded at around $51.74 with a P/E ratio of 8.91 and P/S ratio of 0.74. The dividend yield of Transatlantic Holdings Inc. stocks is 1.62%.
Sold Out: Visa Inc. (V, Financial)
Chuck Akre sold out his holdings in Visa Inc.. His sale prices were between $65.48 and $77.38, with an estimated average price of $72.17.
VISA operates the world's largest retail electronic payments network and is one of the most recognized global financial services brands. Visa Inc. has a market cap of $64.24 billion; its shares were traded at around $76.94 with a P/E ratio of 19.88 and P/S ratio of 7.97. The dividend yield of Visa Inc. stocks is 0.65%.
Sold Out: The Hartford Financial Services Group In (HIG)
Chuck Akre sold out his holdings in The Hartford Financial Services Group In. His sale prices were between $19.09 and $24.12, with an estimated average price of $22.16.
Hartford Financial Services is one of the nation's largest investment and insurance companies, offers a complete line of insurance and financial service products to customers all over the world. The Hartford Financial Services Group In has a market cap of $10.84 billion; its shares were traded at around $24.4 with a P/E ratio of 6.1 and P/S ratio of 0.44. The dividend yield of The Hartford Financial Services Group In stocks is 0.82%.
Sold Out: First Financial Holdings Inc. (FFCH)
Chuck Akre sold out his holdings in First Financial Holdings Inc.. His sale prices were between $9 and $12.86, with an estimated average price of $10.65.
FIRST FINANCIAL HOLDINGS INC. acts as a financial intermediary by attracting deposits from the general public and using such funds, together with borrowings and other funds, to originate first mortgage loans on residential properties located in its primary market areas. First Financial Holdings Inc. has a market cap of $179.32 million; its shares were traded at around $10.85 with and P/S ratio of 0.71. The dividend yield of First Financial Holdings Inc. stocks is 1.84%.
