Insights into Akre's Q4 Moves and the Impact on Mastercard Inc
Akre Capital Management has made notable changes to its portfolio in the fourth quarter of 2023. With over two decades of experience at Johnston, Lemon & Co. and a subsequent tenure at Friedman, Billings, Ramsey & Co., Chuck Akre (Trades, Portfolio) has honed a value investment strategy centered around his "three-legged stool" philosophy. This approach seeks out companies with exceptional business models, adept management, and lucrative reinvestment opportunities. The firm's long-term focus on economic value per share growth often leads it to view short-term market fluctuations as potential investment opportunities.
Summary of New Buys
Akre Capital's (Trades, Portfolio) portfolio welcomed a new addition in the fourth quarter:
- SBA Communications Corp (SBAC, Financial) entered the portfolio with 180,629 shares, representing 0.39% of the total holdings and a value of $45.82 million.
Key Position Increases
Akre Capital also bolstered its positions in two companies:
- American Tower Corp (AMT, Financial) saw an increase of 36,375 shares, bringing the total to 6,804,599 shares. This represents a 0.54% increase in share count and a 0.07% impact on the current portfolio, with a total value of $1.47 billion.
- CoStar Group Inc (CSGP, Financial) had an additional 6,443 shares added, totaling 7,255,669 shares. This adjustment marks a 0.09% increase in share count, with a total value of $634.07 million.
Summary of Sold Out Positions
During the fourth quarter, Akre Capital completely exited one holding, which is not detailed in the provided data.
Key Position Reductions
Conversely, the firm trimmed its stakes in 13 stocks, with the most significant changes being:
- Mastercard Inc (MA, Financial) was reduced by 788,927 shares, leading to a 13.48% decrease in shares and a 2.71% impact on the portfolio. The stock's average trading price was $401.73 during the quarter, with an 18.13% return over the past three months and a 7.45% year-to-date return.
- Visa Inc (V, Financial) saw a reduction of 1,292,214 shares, a 26.92% decrease, and a 2.58% impact on the portfolio. The stock traded at an average price of $246.48 during the quarter, returning 14.49% over the past three months and 6.27% year-to-date.
Portfolio Overview
As of the fourth quarter of 2023, Akre (Trades, Portfolio)'s portfolio comprised 18 stocks. The top holdings were 18.17% in Mastercard Inc (MA), 15.7% in Moody's Corporation (MCO, Financial), 12.36% in American Tower Corp (AMT, Financial), 11.61% in KKR & Co Inc (KKR, Financial), and 8.15% in O'Reilly Automotive Inc (ORLY, Financial). The investments are primarily concentrated across seven industries: Financial Services, Real Estate, Consumer Cyclical, Technology, Healthcare, Consumer Defensive, and Industrials.
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.
