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Tracking Akre Capital Management Portfolio - Q4 2022 Update

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This article is portion of a bid that provides an ongoing study of nan changes made to Akre Capital Management's 13F portfolio connected a quarterly basis. It is based connected Akre's regulatory 13F Form revenge connected 2/13/2023. Please visit our Tracking Akre Capital Management Portfolio bid to get an thought of their finance accuracy and our last update for their moves successful Q3 2022.

This quarter, Akre's 13F portfolio worth decreased ~2% from $11.34B to $11.06B. The number of positions decreased from 21 to 20. The largest 5 stakes are MasterCard, Moody's, American Tower, Visa, and O'Reilly Auto. They relationship for ~65% of nan full portfolio value.

AUM is distributed among backstage funds, separately managed accounts, and nan Akre Focus Mutual Fund (MUTF:AKREX) (MUTF:AKRIX). Since nan 2009 inception done 2022, nan communal fund's annualized returns are astatine 13.93% compared to 12.65% for nan S&P 500 Index. For 2022, nan money returned antagonistic 22.93% compared to antagonistic 18.1% for nan S&P 500 Index. Their rate allocation has accrued from ~2% to ~6.7% during 2022. Akre coined nan word "compounding machines" to picture nan type of businesses he invests in. To study much astir that investing style, cheque retired 100 to 1 successful nan Stock Market.

Note: positions successful nan communal money not reported done nan 13F filings see Constellation Software (OTCPK:CNSWF), and Topicus.com (OTCPK:TOITF). Topicus.com is simply a spinoff from Constellation Software that started trading successful February 2021.

Stake Disposals:

Salesforce (CRM): CRM was a 3.93% of nan portfolio position established successful Q2 2021 astatine prices betwixt ~$211 and ~$246. The disposal this 4th was astatine prices betwixt ~$128 and ~$165. The banal presently trades astatine ~$168. They realized losses.

Snowflake Inc. (SNOW): The 1.50% SNOW liking was purchased successful Q2 2022 astatine prices betwixt ~$113 and ~$241. The position was sold this 4th astatine prices betwixt ~$126 and ~$189. The banal presently trades astatine ~$164.

New Stakes:

Brookfield Asset Management (BAM): BAM is simply a mini ~1% of nan portfolio position established arsenic a consequence of nan spinoff from Brookfield Corp. The banal presently trades astatine $35.38.

Stake Increases:

American Tower (AMT): AMT has been successful nan portfolio for complete 2 decades. It is nan second-largest liking astatine ~13% of nan portfolio. Recent activity follows: nan six years done Q3 2018 saw accordant buying almost each quarter. The stock count accrued complete 4 times from 1.7M shares to 7.1M shares during that period. The buying happened astatine prices betwixt $65 and $118. Since then, location person only been insignificant adjustments. The banal is now astatine ~$212. There was a marginal summation this quarter.

Note: Akre is very bullish connected AMT arsenic incremental margins are astatine complete 90% and maturation successful wireless connection is simply a important tailwind.

Brookfield Corp. (BN), antecedently Brookfield Asset Management: BN is simply a 4.94% of nan portfolio liking established successful Q3 2019 astatine prices betwixt $20 and $24 and accrued by ~18% adjacent 4th astatine prices betwixt $22 and $27. The first 3 quarters of 2020 had seen different ~45% summation astatine prices betwixt $10 and $33.50. That was followed pinch different ~30% liking summation this 4th astatine prices betwixt ~$31 and ~$35. The banal presently trades astatine ~$36.

Note: nan prices quoted supra are adjusted for nan Asset Management Business spinoff completed past December. Shares of nan spinoff which assumed nan sanction Brookfield Asset Management was distributed astatine a ratio of 1 stock of nan separated business for each 4 Class A shares held. The genitor institution was past renamed Brookfield Corp.

Danaher Corporation (DHR): DHR is simply a 4.29% of nan portfolio position established successful Q4 2013 astatine prices betwixt $47 and $55 and accrued by astir five-times successful Q2 2014 astatine prices betwixt $52 and $59. The banal is now astatine ~$256. There was a ~8% liking summation this quarter.

Note: The prices quoted supra are adjusted for nan Fortive spinoff successful July 2017.

DigitalBridge (DBRG), antecedently Colony Capital: The DBRG liking saw a ~6x summation successful Q3 2020 astatine prices betwixt ~$7.20 and ~$11.60. Q2 2022 saw a ~55% liking summation astatine prices betwixt ~$18.20 and ~$30.20. That was followed pinch a ~22% summation successful nan past 2 quarters astatine prices betwixt ~$11.50 and ~$23.50. The banal presently trades astatine $14.90. The liking is still very mini astatine 0.49% of nan portfolio.

Note: The prices quoted supra are adjusted for nan one-for-four reverse stock-split successful August.

Stake Decreases:

Mastercard (MA): MA is presently nan largest 13F liking astatine 18.47% of nan portfolio. It was first purchased successful 2010 and consistently accrued since. Their wide cost-basis is ~$22 compared to nan existent value of ~$368 per share. Q1 2020 saw a ~9% liking summation while Q2 2022 saw a ~14% trading astatine prices betwixt ~$309 and ~$379. There was marginal trimming this quarter.

Note: In a WealthTrack question and reply successful November 2019, Akre commented that thing bonzer is happening astatine Mastercard - if nan complaint of return is trim down twice, they would still beryllium earning supra average. On nan mobility "one finance each investor should ain immoderate of", Akre responded pinch two: Mastercard and Visa.

Visa Inc. (V): Visa is simply a ample (top five) 9.24% of nan portfolio stake. It was established successful Q2 2012 astatine a cost-basis of astir $30. Q2 2013 saw a one-third summation successful nan low-40s and that was followed pinch a 60% summation successful Q2 2016 successful nan precocious 70s. Q1 2017 besides saw different astir one-third summation astatine prices betwixt $79.50 and $90. Since then, nan activity has been minor. The banal is now astatine ~$226. There was a ~6% trimming this quarter.

Note: Visa banal divided 4-for-1 successful March 2015. The prices quoted supra are adjusted for that split.

O'Reilly Automotive (ORLY): ORLY is simply a ample (top five) ~9% portfolio liking first purchased successful 2005. Over 800K shares were purchased astatine nan time. The position was astatine 825K shares arsenic of Q1 2017 - each twelvemonth had seen adjustments but overall, nan liking had remained remarkably dependable complete that twelve-year play - nan banal returned ~10x during that time. 2017 saw a ~130% liking summation astatine an mean costs of ~$195. Q1 2021 saw a ~14% trading astatine prices betwixt ~$425 and ~$509. Last six quarters had seen only insignificant activity. There was a ~20% trading this 4th astatine prices betwixt ~$703 and ~$865. The banal is now astatine ~$862.

Roper Technologies (ROP): ROP is simply a 6.47% of nan portfolio position first purchased successful Q2 & Q3 2014 astatine prices betwixt $129 and $150. The liking saw incremental buying successful nan pursuing quarters. In Q2 2016, location was a ~20% summation astatine prices betwixt $165 and $185. The first 3 quarters of 2020 had seen a ~22% liking summation astatine prices betwixt $254 and $453. The banal is now astatine ~$423. H1 2021 had seen a ~12% trimming. There was marginal trimming this quarter.

KKR & Co. (KKR): KKR is simply a 6.34% of nan portfolio position established successful Q1 2018 astatine prices betwixt $20 and $24.50 and doubled adjacent 4th astatine prices betwixt $19.50 and $25.50. There was different ~25% summation successful Q4 2018 astatine prices betwixt $18.50 and $28. The first 3 quarters of 2020 had besides seen a ~15% increase. Since then, location person only been insignificant adjustments. The banal presently trades astatine $57.55. This 4th saw a ~2% trimming.

Note: KKR converted from a business to a corp effective July 1, 2018.

Adobe Inc. (ADBE): ADBE is simply a 3.77% of nan portfolio position purchased successful Q1 2020 astatine prices betwixt $285 and $383 and accrued by astir one-third successful Q1 2021 astatine prices betwixt ~$421 and ~$502. Last six quarters had seen only insignificant adjustments. There was a ~25% simplification this 4th astatine prices betwixt ~$275 and ~$346. The banal presently trades astatine ~$365.

CarMax Inc. (KMX): The 2.91% KMX liking is simply a very semipermanent position first purchased successful 2002. The bulk of nan existent liking was built complete nan 4 quarters done Q2 2016 astatine prices betwixt $42 and $68. There was a ~10% liking summation successful Q4 2018 astatine prices betwixt $57 and $74. 2019 had besides seen a ~17% liking summation astatine prices betwixt $58 and $98 and that was followed pinch a ~20% further summation successful Q1 2020 astatine prices betwixt $44 and $102. The 2 quarters done Q1 2021 had seen a ~12% selling. That was followed pinch a ~30% simplification this 4th astatine prices betwixt ~$56 and ~$75. The banal is now astatine $74.32.

Dollar Tree (DLTR): DLTR position was first purchased successful 2010 astatine a cost-basis successful nan low-20s. Recent activity follows. There was a ~15% liking summation successful Q2 2017 astatine prices betwixt $66.50 and $83. Q1 2020 saw a ~10% trading and that was followed pinch marginal trimming successful nan adjacent 3 quarters. Q1 2021 saw a ~20% simplification astatine prices betwixt ~$98 and ~$116. That was followed pinch a ~25% trading successful Q4 2021 astatine prices betwixt ~$96 and ~$147. The position was almost sold retired adjacent 4th astatine prices betwixt ~$126 and ~$160. The banal presently trades astatine ~$147. There was further trading this quarter.

Verisk Analytics (VRSK): The VRSK position was purchased successful H2 2012 astatine prices betwixt $46.50 and $51. 2015 saw a immense 3x liking summation astatine prices betwixt $63 and $81. The position had since been kept comparatively steady. This 4th saw nan liking almost sold retired astatine prices betwixt ~$166 and ~$186. The banal is presently astatine ~$176.

Kept Steady:

Moody's Corporation (MCO): The first acquisition of MCO happened successful Q1 & Q2 2012 successful nan high-30s price-range. Since then, nan position size was doubled astatine higher prices. Recent activity follows: Q4 2016 saw a ~15% summation astatine prices betwixt $94 and $109 and that was followed pinch a ~22% summation nan pursuing 4th astatine prices betwixt $95 and $114. Since then, nan activity has been minor. It presently trades astatine ~$303 and is now nan second-largest liking astatine 14.36% of nan portfolio.

Note: Akre's cost-basis connected MCO is ~$39.

CoStar Group (CSGP): The ~5% CSGP liking was purchased successful Q4 2019 astatine prices betwixt ~$54 and ~$62 and accrued by ~75% adjacent 4th astatine prices betwixt ~$52 and ~$74. Q2 2020 saw different ~120% liking summation astatine prices betwixt ~$53 and ~$73. There was a ~25% simplification successful Q2 2022 astatine prices betwixt ~$54 and ~$68. The banal presently trades astatine $78.18.

Note: The prices quoted supra are adjusted for nan 10-for-1 banal divided past June.

Alarm.com Holdings (ALRM): ALRM is simply a very mini 0.12% position first purchased successful Q2 2015. Q3 2019 saw a ~130% liking summation astatine prices betwixt $46 and $53. The 4 quarters done Q3 2020 had seen a ~43% further summation astatine prices betwixt ~$37 and ~$71. There was a ~50% simplification successful Q1 2022 while successful nan adjacent 4th location was a ~73% increase. The banal presently trades astatine $52.15.

Alphabet (GOOG) Calls: The leveraged agelong liking successful GOOGL done Calls is simply a very mini 0.08% of nan portfolio position established successful Q2 2022. GOOG presently goes for $95.78.

Goosehead Insurance (GSHD): GSHD is simply a minutely mini position established successful Q4 2018 and accrued complete nan adjacent 2 quarters. There has been periodic buying since. Goosehead had an IPO successful April 2018 priced astatine $10. Last 4th saw a ~30% trading astatine prices betwixt ~$36 and ~$71. It presently trades astatine ~$41.50. The position is very mini astatine 0.08% of nan portfolio.

Berkshire Hathaway (BRK.B): The minutely mini 0.05% BRK.B liking was kept dependable this quarter.

Below is simply a spreadsheet that highlights nan changes to Akre Capital Management's 13F banal portfolio arsenic of Q4 2022:

Chuck Akre - Akre Capital Management's Q4 2022 13F Report Q/Q Comparison

Chuck Akre - Akre Capital Management's Q4 2022 13F Report Q/Q Comparison (John Vincent (author))

Editor's Note: This article discusses 1 aliases much securities that do not waste and acquisition connected a awesome U.S. exchange. Please beryllium alert of nan risks associated pinch these stocks.

This article was written by

John Vincent floor plan picture

Focused connected cloning strategies by analyzing 13F reports of a curated group of astir 50 super-investors and generating Absolute Returns thru exploiting inefficiency, volatility, and momentum.

Disclosure: I/we person a beneficial agelong position successful nan shares of DBRG, GOOGL either done banal ownership, options, aliases different derivatives. I wrote this article myself, and it expresses my ain opinions. I americium not receiving compensation for it (other than from Seeking Alpha). I person nary business narration pinch immoderate institution whose banal is mentioned successful this article.

Editor: Naga



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