5 / 5 Stars
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Zacks Investment Research
Standard & Poor's
5 / 5 Stars
#4 in Mid-Cap Growth
U.S. News evaluated 217 Mid-Cap Growth Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned 31.99 percent over the past year.
|Trailing Returns||Updated 10.31.2013|
|Year to date||30.5%|
|3 Years (Annualized)||21.5%|
|5 Years (Annualized)||N/A|
|10 Years (Annualized)||N/A|
Akre Focus is a new fund with an experienced manager.
As of November 05, 2013, the fund has assets totaling almost $2.33 billion invested in 41 different holdings. Its portfolio consists of shares of large and midsized companies.
If you’re looking for a fund that will be fully invested at all times, this isn’t your best bet. Manager Chuck Akre, continuing a trend he started when he managed FBR Focus, has shown a willingness to keep a large chunk of the fund’s portfolio in cash. Last year, he reduced the fund’s cash stake a bit, adding to positions he already owned and using beaten-down prices as an excuse to buy some companies that he’d previously been researching. But even as he wades back into the market, he is treading carefully. “It’s prudent to be cautious,” he said last year. As of the end of January, the fund had 26 percent of its assets tucked away in cash.
An excess of caution seems at odds with this fund’s compact strategy. Notably, as of the end of January, Akre owned shares of just 25 companies. Three holdings—Dollar Tree Stores, Ross Stores, and Lamar Advertising Company—each accounted for upwards of 7 percent of its portfolio. All of the fund’s holdings are high-conviction picks, and Akre has shown little desire to do much trading. This attitude is reflected in the fund’s rock-bottom turnover ratio, which currently sits at 12 percent. A final distinguishing characteristic is what’s missing from this fund’s portfolio. Unlike many of its peers, this fund (as of the end of January) has no exposure to energy names and virtually no exposure to technology companies.
The fund launched in 2009 and has since been a below-average performer. But Akre is largely following the same strategy that worked quite well when he helmed FBR Focus. Says Morningstar: “Although he is off to a slow start ... he put together an impressive result at his previous charge, with exceptional long-term returns, below-average risk, and [only] the occasional blunder. It’s thus easier to trust Akre here for the long haul.” The fund has returned 31.99 percent over the past year.
According to the fund’s prospectus: “The Advisor seeks to find companies whose valuations in the market are modest and that earn higher than average returns on shareholders’ equity, are managed, in the Advisor’s judgment, by individuals who have a history of treating public shareholders like partners and have ample opportunity to reinvest excess profits at above average rates. Once a potential investment is identified, the Advisor attempts to purchase shares at a price it believes represents a discount to a conservative estimate of the company’s intrinsic value. The Fund is non-diversified.”
Role in Portfolio
Morningstar calls the fund a “supporting player.”
Chuck Akre manages the fund.
Akre Focus Fund has an expense ratio of 1.11 percent.
Like all stock funds, this one comes with some risks.