Insights from Akre Capital Management's Latest 13F Filing for Q3 2023
Chuck Akre (Trades, Portfolio), the esteemed founder of Akre Capital Management, has a storied career that spans over five decades in the securities business. With a tenure at NYSE member firm Johnston, Lemon & Co., and later at Friedman, Billings, Ramsey & Co., Akre has honed a value investment philosophy centered around the "three-legged stool" approach. This approach seeks out companies with exceptional business models, adept management, and robust reinvestment opportunities. Akre Capital's long-term focus on economic value per share growth is a testament to the founder's commitment to identifying potential through temporary market fluctuations.
Key Position Increases
During the third quarter of 2023, Chuck Akre (Trades, Portfolio)'s firm bolstered its positions in several stocks. Notably:
- KKR & Co Inc (KKR, Financial) saw an addition of 1,676,739 shares, bringing the total to 16,910,607 shares. This represents an 11.01% increase in share count and a 0.9% impact on the current portfolio, with a total value of $1,041,693,380.
- CoStar Group Inc (CSGP, Financial) also experienced a significant boost with 137,796 additional shares, resulting in a total of 7,249,226 shares. This adjustment marks a 1.94% increase in share count, with a total value of $557,392,990.
Complete Exit from Adobe Inc
One of the most impactful decisions in Akre Capital's third-quarter portfolio was the complete divestment from Adobe Inc (ADBE, Financial), selling all 1,064,081 shares. This move had a -4.33% impact on the portfolio, signaling a strategic shift in the firm's investment stance.
Key Position Reductions
Akre Capital's portfolio adjustments also included reducing stakes in 13 companies. The most significant reductions were:
- Moody's Corporation (MCO, Financial) was trimmed by 186,577 shares, leading to a -3.53% decrease in shares and a -0.54% impact on the portfolio. The stock's average trading price was $340.16 during the quarter, with a return of 2.57% over the past three months and 24.59% year-to-date.
- O'Reilly Automotive Inc (ORLY, Financial) saw a reduction of 58,280 shares, equating to a -5.23% reduction in shares and a -0.46% impact on the portfolio. The stock traded at an average price of $940.9 during the quarter, with a return of 5.82% over the past three months and 18.30% year-to-date.
Portfolio Overview
As of the third quarter of 2023, Akre Capital's portfolio comprised 19 stocks, with top holdings including 20.12% in Mastercard Inc (MA, Financial), 13.99% in Moody's Corporation (MCO), 9.67% in American Tower Corp (AMT, Financial), 9.59% in Visa Inc (V, Financial), and 9.05% in KKR & Co Inc (KKR, Financial). The investments are predominantly concentrated across seven industries: Financial Services, Real Estate, Consumer Cyclical, Technology, Healthcare, Industrials, and Consumer Defensive.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
