- Chuck Akre’s portfolio value increased from $5.21B to $5.45B this quarter.
- Akre Capital Management added Dollar General while reducing Colfax and increasing SBA Communications.
- The top three positions are American Tower, MasterCard, and Markel.
Charles Akre’s Akre Capital Management portfolio value
increased ~5% from $5.21B to $5.45B this quarter. The number of positions remained
steady at 30. The largest five stakes are American Tower (AMT), MasterCard
(MA), Markel Corporation (MKL), Moody’s Corporation (MCO), and CarMax (KMX) and
they together account for ~46% of the total portfolio value.
Akre coined the term "compounding machines" to
describe the type of businesses he invests in. To learn more about that
investing style, check out 100 to 1 in the Stock Market.
Below are the portfolio highlights:
American Tower (AMT),
MasterCard, and Markel Corporation (MKL): American Tower and Markel
positions have been in the portfolio for over sixteen years. AMT is the largest
stake at ~14% while MA & MKL are at ~9% of the portfolio each. The
MasterCard position was first purchased in 2010 in the low-20s price-range and
it currently trades at ~$111. The stake saw increases every year thru 2015 but
has been kept relatively steady. AMT saw a ~5% increase this quarter while MA
& MKL were marginally reduced.
Moody’s Corporation
(MCO) and Dollar Tree (DLTR): The initial purchase of MCO happened in Q1
& Q2 2012 in the high-30s price-range. Since then, the position has been
doubled at higher prices. It currently trades at $113. This quarter saw a ~15%
increase at prices between $94 and $109. DLTR was first purchased in 2010 at a
cost-basis in the low-20s. The stock currently trades at $75.22. The position was
kept relatively steady last year although previous years have seen significant
buying.
Visa Inc. (V): V
is a fairly large ~5% of the portfolio stake. It was established in Q2 2012 at
a cost-basis of around $30. Q2 2013 saw a one-third increase at a cost-basis in
the low-40s. Q2 2016 saw a huge ~60% increase at prices between $73 and $82.
The stock is now at ~$89.06. There was a marginal increase this quarter.
Roper Technologies
(ROP): ROP is a fairly large 5.24% of the portfolio position first
purchased in Q2 & Q3 2014 at prices between $129 and $150. The stake saw
incremental buying in the following quarters as well. Q2 2016 saw another ~20%
increase at prices between $165 and $185. The stock is now at $212. There was
marginal trimming this quarter.
CarMax Inc. (KMX): The
~6% KMX stake is a very long-term position first purchased in 2002. The bulk of
the current stake was built over the four quarters thru Q2 2016 at prices
between $42 and $68. The stock is now at ~$63.81.
Colfax Corp. (CFX): The
medium-sized ~3% CFX position was first purchased in Q3 2012 and built up over
the last four years at prices between $20 and $75. Q2 2016 saw an about-turn:
~20% reduction at prices between $25 and $34. There was another ~23% selling
this quarter at prices between $29 and $40. The stock is now at $38.41.
Note: Akre Capital Management has a ~9% ownership stake in
Enstar Group (ESGR) and a ~6% ownership of Primo Water (PRMW).
Below is a spreadsheet that highlights the changes to
Charles Akre's Akre Capital Management US long stock portfolio as of Q4 2016.
Please check out our previous update to have
an idea on how the portfolio is progressing:
To learn more about how to profit from a strategy of
cloning hedge fund picks, check out our book Profiting from Hedge Funds: Winning
Strategies for the Little Guy .
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