Chuck Akre

EXTRAORDINARY COMPOUNDING COMPANIES

November 8, 2019

We are always on the lookout for the exceptional on WEALTHTRACK. It’s not easy to find among actively managed mutual fund managers. Only 23% of actively managed funds in all major categories, including stocks, bonds, and real estate outperformed their passive index fund rivals over the last ten years. And only about 8% of U.S. large-cap funds outperformed passive, the smallest margin among all active fund categories winners. No wonder that active U.S. stock funds are experiencing substantial outflows and passive stock funds are gaining assets. In a historic shift, passive assets in U.S. equity funds recently surpassed those in actively managed ones for the first time ever.

This week’s guests are bucking all of those trends. They are active managers in primarily large-cap U.S. stocks. They have been beating the market and peers by substantial margins over the last decade and they are attracting more assets.

Joining us for a rare interview is Chuck Akre and John Neff of Akre Capital Management

WEALTHTRACK Episode #1619; Originally Broadcast on November 08, 2019

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CHARLES “CHUCK” AKRE

JOHN NEFF

Consuelo Mack

We are always on the lookout for the exceptional on WEALTHTRACK.  It’s not easy to find among actively managed mutual fund managers. Only 23% of actively managed funds in all major categories, including stocks, bonds and real estate outperformed their passive index fund rivals over the last ten years. And only about 8% of U.S. large cap funds outperformed passive, the smallest margin among all active fund categories winners.  No wonder that active U.S. stock funds are experiencing substantial outflows and passive stock funds are gaining assets. In an historic shift, passive assets in U.S. equity funds recently surpassed those in actively managed ones for the first time ever.

This week’s guests are bucking all of those trends. They are active managers in primarily large cap U.S. stocks. They have been beating the market and peers by substantial margins over the last decade and they are attracting more assets.

Joining us for a rare interview is Chuck Akre, Founder, Managing Member, Chief Executive Officer and Chief Investment Officer of Akre Capital Management which he launched in 1989 and moved from a suburb of Washington D.C. to rural Middleburg, Virginia in 2002.

Of the approximately $13 billion Akre Capital manages, nearly $12 billion is in the flagship, Akre Focus Fund which he launched ten years ago. Akre Focus is rated five star and carries a Silver Medalist Analyst rating from Morningstar and has a superb  record, beating the S&P 500, the Russell 1000 Growth Index and its Large Growth  category by substantial margins over multi-year periods, including 17% annualized returns since inception. It’s done so with a concentrated group of companies, only 17 holdings currently, most of them which it holds for years.

Another key member of the Akre team is John Neff, partner at Akre Capital Management, who joined the firm as an analyst in 2009 and is now Co-Portfolio Manager of Akre Focus Fund.  Neff is not related to the late great investor by that name. He is building his own reputation at Akre Focus and is off to a good start.

If you are unable to join us for the show on television, you can watch it on our website over the weekend.  If you would prefer to take WEALTHTRACK with you on your commute or travels, you can find the WEALTHTRACK podcast on TuneInStitcher and SoundCloud, as well as iTunes and Spotify.  In this week’s web EXTRA feature Chuck Akre and John Neff share some personal insights on keeping mentally fresh.

Thank you for watching.  As the nation observes Veteran’s Day, we extend our gratitude and admiration to all who have served, including my husband and son. Have a memorable weekend and make the week ahead a profitable and a productive one.

Best regards,

Consuelo

PAY ATTENTION TO A MUTUAL FUND’S CULTURE AND INVESTMENT TEAM

    Continuity is important in a firm’s:

  • Leadership
  • Investment philosophy
  • Goals
  • Discipline

No Bookshelf titles this week.

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This transcript will be available soon. More information regarding WEALTHTRACK transcripts can be found here

Archive episodes available soon.

CHUCK AKRE: COMPOUNDING MACHINE

Great Investor Chuck Akre explains how he finds “compounding machines” – companies that produce high rates of returns for shareholders. Chuck says these companies are few and far between, but once he finds them, he holds on to them. The Akre Focus Fund is rated 5-star by Morningstar and has delivered nearly 19% annualized returns since its inception.

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AKRE: INDEPENDENT THINKING

Less than a decade ago, Great Investor Chuck Akre moved his offices from the Washington DC area to rural Virginia. The change in location has had the desired effect.

NEFF: MIND BROADENING

Akre Focus Fund’s co-portfolio manager John Neff is learning to recognize greatness outside of the investment field.

CHUCK AKRE: RULES TO LIVE BY

May 16, 2014

Independence of thought and constant inquiry are hallmarks of most Great Investors. Chuck Akre is no exception. He shares his personal and professional rules to live by and why where he lives is a key contributor to his outstanding track record. Continue Reading »

CHUCK AKRE: COMPOUNDING MACHINE

May 16, 2014

Great Investor Chuck Akre explains how he finds “compounding machines” – companies that produce high rates of returns for shareholders. Chuck says these companies are few and far between, but once he finds them, he holds on to them. The Akre Focus Fund is rated 5-star by Morningstar and has delivered nearly 19% annualized returns since its inception. Continue Reading »

CHUCK AKRE: COMPOUNDING MACHINES TRANSCRIPT

May 16, 2014

CEO and chief investment officer of Akre Capital Management, Great Investor Chuck Akre, explains how he finds “compounding machines” and why he invests for the long haul.

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