- Charles T. Akre known as Chuck Akre is a value investor who manages a $11.8 billion stock portfolio through the Akre Capital Management fund. He currently holds a8 stocks. 66% of the fund is in the first largest 5 holdings.
- Chuck Akre uses an investment strategy called ‘three-legged stool’ in which he examines business models, rate of return & reinvestment opportunities. When he analyses a stock he considers these characteristics.
- Good managers with demonstrated track records
- Durable competitive advantages
- Long-term growth
- Attractive purchase prices relative to the cash flows generated by the company
1. Mastercard Incorporated (MA)
- Chuck Akre’s largest stock position is Mastercard. He currently holds 5 million Mastercard shares worth $2.16 billion, 18% of the fund.
- Mastercard is an electronic payment system that offers payment services all over the world. Mastercard is the 2nd largest payment services company in the world.
- The total revenue of the company has grown from $15.3 billion to $25 billion over the past 4 years. Net profit has increased from $6.4 billion to $ 11 billion. MA share currently trades at $455 & PE of 38.
2. Mood’s Corporation (MCO)
- Mody’s ratings provide international financial research on bonds issued by commercial & government entities. Moody’s is one of the largest credit rating agencies in the world. Moody’s was founded by John Moody in 1909, to produce manuals of statistics related to stocks & bonds.
- MCO shares currently trade at $375 per share. The current PE ratio is around 43. The dividend per share is around $3.4 & current dividend yield is 0.91%. current EPS is $8.25.
- Moody’s Corporation is the 2nd largest holding of the fund. Akre Capital Fund owns 4.7 million Moody shares worth $1.86 billion which is 15.7% of the portfolio.
3. American Tower Corporation (AMT)
- American Tower Corporation is an American real estate investment trust that owns, develops & operates wireless & broadcast communications infrastructure in several countries. The company owns 224,502 communication sites in the USA, Canada, Europe, Asia-Pacific, Africa & Latin America.
- The market cap of the company right now is around $80 billion & current market price of a share is $170. American Tower Corporation pays a $6.48 dividend per share & the dividend yield sits at 3.8% now. Last year free cash flow value of the company was nearly $3 billion & operating cash flow was $4.7 billion.
- Akre fund owns 6.8 million shares of American Tower Corporation which is worth $1.46 billion right now. 12.36% of the total portfolio currently is in AMT shares.
