Akre Capital Management LLC Q3 2022 vs. Q4 2022 13F: Significant Shifts in Holdings

A recent filing by Akre Capital Management LLC (ACM) with the SEC for the third and fourth quarters of 2022 showed significant changes in its 13F holdings. In just three months, the fund's portfolio saw several additions, reductions, and eliminations of 40+ holdings. In this blog post, we'll take a closer look at the top holdings of the fund, the winners and losers, and the overall changes in the portfolio.

Introduction:

Akre Capital Management LLC, founded in 1989, is a Virginia-based investment management firm known for its long-term investment philosophy. Charles Akre, CIO and founder of ACM, is an experienced investor and had worked as a portfolio manager at FBR Equity Funds before starting ACM. The firm manages over $20 billion in assets and is known for creating wealth for its clients via concentrated investment holdings in a few handpicked companies. In this blog post, we'll analyze the recent filings made by ACM with the SEC.

Overview of 13F Holdings:

According to the latest SEC filing, as of Q4 2022, the top holdings of ACM were Mastercard Inc., Moody's Corp, American Tower Corp New, Visa Inc, and Oreilly Automotive Inc. While five out of the top 10 holdings remained the same in the third and fourth quarters, there were significant changes in the remaining five. The fund eliminated three holdings, reduced its position size in five, and introduced two new holdings.

Winners:

As per the filing, Roper Technologies Inc. (ROP) was the biggest winner for the fund as it saw a 20.1% increase in its position size from Q3 2022 to Q4 2022. Mastercard Inc. (MA) and Visa Inc. (V) also performed well, with 21.8% and 9.8% increases in their respective position sizes. Moody's Corp (MCO) and Danaher Corp (DHR) were the other two companies that saw an increase of more than 10% in their position sizes.

Losers:

KMX, a car dealership chain, was the biggest loser for the fund, as its position size was reduced by a whopping 33.6% between Q3 and Q4 2022. Adobe Systems Inc. (ADBE) was another significant loser, with a 9% reduction in position size. Verisk Analytics Inc (VRSK) witnessed a massive 99.2% reduction in position size, from 2444286 to 18976 shares, while Brookfield Asset Management Inc (BKAA.SG) and Salesforce.com Inc (CRM) were entirely eliminated from the fund's holdings.

Conclusion:

In conclusion, the recent filing by Akre Capital Management LLC revealed significant changes in its 13F holdings. The fund reduced its position size in several holdings, completely eliminated some stocks, and introduced a few new ones. Not surprisingly, the top holdings remained largely unchanged. The fund's investment philosophy of holding chosen companies for an extended period seemed to have served it well, as evidenced by its long-term track record. Investors should keep a close watch on the fund's holdings to gain insights into the choices of an accomplished investment management team.