"Tracking Akre Capital Management Portfolio – Q1 2021 Update"
"Akre Capital Management portfolio value decreased marginally from $14.80B to $14.72B this quarter.They increased Adobe while almost eliminating Markel Corporation during the quarter.The top three positions are MasterCard, American Tower, and Moody’s and they add up to ~37% of the entire portfolio.This article is part of a series that provides an ongoing analysis of the changes made to Akre Capital Management’s 13F portfolio on a quarterly basis. It is based on Akre’s regulatory  filed on 05/13/2021. Please visit our  series to get an idea of their investment philosophy and our  for their moves in Q4 2020.This quarter, Akre’s 13F portfolio value decreased marginally from $14.80B to $14.73B. The number of positions increased from 28 to 29. The largest five stakes are MasterCard, American Tower, Moody’s Corporation, Visa, and CarMax. They account for ~51% of the total portfolio value.AUM is distributed among private funds, separately managed accounts, and the Akre Focus Mutual Fund (AKREX) (AKRIX). Since the 2009 inception, the mutual fund’s annualized returns are at 17.03% compared to 14.77% for the S&P 500 Index. For Q1 2021, the fund returned 3.90% compared to 6.17% for the S&P 500 Index. Their cash allocation has come down from ~17% to ~3% over the last five quarters. Akre coined the term "compounding machines" to describe the type of businesses he invests in. To learn more about that investing style, check out .New Stakes:ThredUp Inc. (TDUP), PayPal Holdings (PYPL), and Alphabet Inc. (GOOG): These three minutely small (less than ~0.1% of the portfolio each) stakes were established this quarter.Stake Disposals:Descartes Systems (DSGX) and Primo Water (PRMW): These two minutely small (less than ~0.1% of the portfolio each) positions were disposed during the quarter.Stake Increases:Visa Inc. (V): Visa is a large (top five) 7.55% of the portfolio stake. It was established in Q2 2012 at a cost-basis of around $30. Q2 2013 saw a one-third increase in the low-40s and that was followed with a 60% increase in Q2 2016 in the high 70s. Q1 2017 also saw another roughly one-third increase at prices between $79.50 and $90. Since then, the activity has been minor. The stock is now at ~$227.Note: Visa stock split 4-for-1 in March 2015. The prices quoted above are adjusted for that split.CoStar Group (CSGP): The 5.45% CSGP stake was purchased in Q4 2019 at prices between $544 and $617 and increased by ~75% next quarter at prices between $523 and $740. Q2 2020 saw another ~120% stake increase at prices between $527 and $725. The stock currently trades well above those ranges at ~$822. There was a marginal increase over the last three quarters.Adobe Inc. (ADBE): ADBE is a 4.94% of the portfolio position purchased in Q1 2020 at prices between $285 and $383 and increased by roughly one-third this quarter at prices between ~$421 and ~$502. The stock currently trades at ~$487.KKR & Company (KKR): KKR is a 4.89% of the portfolio position established in Q1 2018 at prices between $20 and $24.50 and doubled next quarter at prices between $19.50 and $25.50. There was another ~25% increase in Q4 2018 at prices between $18.50 and $28. The first three quarters of last year had also seen a ~15% increase. Since then, there have only been minor adjustments. The stock currently trades at ~$56.Note: KKR converted from a partnership to a corporation effective July 1, 2018.Colony Capital (CLNY): The CLNY stake saw a ~6x increase in Q3 2020 at prices between ~$1.80 and ~$2.90. The stock currently trades at $6.52. The stake is still very small at 0.47% of the portfolio. There was a marginal increase this quarter.Stake Decreases:MasterCard (MA): MA is currently the largest 13F stake at ~14% of the portfolio. It was first purchased in 2010 and consistently increased since. Their overall cost-basis is ~$22 compared to the current price of ~$364 per share. Q1 2020 saw a ~9% stake increase. Last four quarters have seen only minor adjustments.Note: In a WealthTrack interview in November 2019, Akre commented that something extraordinary is happening at MasterCard – if the rate of return is cut down twice, they would still be earning above average. On the question “one investment every investor should own some of”, Akre responded with two: MasterCard and Visa.American Tower (AMT): AMT has been in the portfolio for well over eighteen years. It is the second-largest stake at ~12% of the portfolio. Recent activity follows: the six years thru Q3 2018 saw consistent buying almost every quarter. The share count increased over four times from 1.7M shares to 7.1M shares during that period. The buying happened at prices between $65 and $118. Since then, there have only been minor adjustments. The stock is now at ~$247.Note: Akre is very bullish on AMT as incremental margins are at over 90% and growth in wireless communication is a significant tail-wind. Crown Castle (CCI) is another option in the same mold.Moody’s Corporation (MCO): The initial purchase of MCO happened in Q1 & Q2 2012 in the high-30s price-range. Since then, the position size was doubled at higher prices. Recent activity follows: Q4 2016 saw a ~15% increase at prices between $94 and $109 and that was followed with a ~22% increase the following quarter at prices between $95 and $114. It currently trades at ~$334 and is now the third-largest stake at ~11% of the portfolio. There was marginal trimming in the last two years.Note: Akre’s cost-basis on MCO is ~$39.CarMax Inc. (KMX): The 6.41% KMX stake is a very long-term position first purchased in 2002. The bulk of the current stake was built over the four quarters thru Q2 2016 at prices between $42 and $68. There was a ~10% stake increase in Q4 2018 at prices between $57 and $74. 2019 had also seen a ~17% stake increase at prices between $58 and $98 and that was followed with a ~20% further increase in Q1 2020 at prices between $44 and $102. Last two quarters have seen a ~12% trimming. The stock is now at ~$125.O’Reilly Automotive (ORLY): ORLY is a large 5.45% portfolio stake first purchased in 2005. Over 800K shares were purchased at the time. The position was at 825K shares as of Q1 2017 - every year had seen adjustments but overall the stake had remained remarkably steady over that twelve-year period – the stock returned ~10x during that time. 2017 saw a ~130% stake increase at an average cost of ~$195. There had only been marginal adjustments since. This quarter saw a ~14% selling at prices between ~$425 and ~$509. The stock is now at ~$553.Roper Technologies (ROP): ROP is a large 4.76% of the portfolio position first purchased in Q2 & Q3 2014 at prices between $129 and $150. The stake saw incremental buying in the following quarters. In Q2 2016, there was a ~20% increase at prices between $165 and $185. The first three quarters of last year had seen a ~22% stake increase at prices between $254 and $453. The stock is now at ~$438. This quarter saw a ~9% trimming.SBA Communications (SBAC): SBAC is a 4.31% portfolio stake. The position is from H1 2014 at prices between $88 and $102. Q4 2015 saw a one-third increase at prices between $100 and $121 and a similar increase occurred in Q4 2016 as well at prices between $96 and $115. The stock currently trades well above those ranges at ~$289. There was a ~7% trimming this quarter.Verisk Analytics (VRSK): VRSK is a 2.94% portfolio position first purchased in H2 2012 at prices between $46.50 and $51. 2015 saw a huge 3x stake increase at prices between $63 and $81. The position has since been kept relatively steady. The stock is currently at ~$175.Dollar Tree (DLTR): DLTR is a 2.79% of the portfolio position first purchased in 2010 at a cost-basis in the low-20s. Recent activity follows: there was a ~15% stake increase in Q2 2017 at prices between $66.50 and $83. Q1 2020 saw a ~10% selling and that was followed with marginal trimming in the next three quarters. This quarter saw a ~20% reduction at prices between ~$98 and ~$116. The stock currently trades at ~$111.Markel Corporation (MKL): MKL is a very long term stake that has been in the portfolio for over twenty years. Recent activity follows: H2 2013 and H1 2014 saw a stake doubling at prices between $510 and $655. Since then the position had remained steady. Last five quarters saw a ~50% combined selling at prices between $785 and $1341. The position was almost eliminated this quarter at prices between ~$945 and ~$1155. The stock is now at ~$1233.Note: Akre saw 20-times compounding over 20 years on his first purchases of MKL. However, they also increased their original stake substantially twelve years ago at a cost-basis of $444 (2.5 times book value) and that portion increased by only ~150%.Kept Steady:Brookfield Asset Management (BAM): BAM is a 3.94% of the portfolio stake established in Q3 2019 at prices between $32 and $36 and increased by ~18% next quarter at prices between $34 and $39. The first three quarters of last year had seen another ~45% increase at prices between $22 and $45.50. The stock currently trades at ~$48. Last quarter saw a ~4% trimming.Note: the prices quoted are adjusted for the 3-for-2 stock-split last year.Live Nation Entertainment (LYV): The 3.14% of the portfolio stake in LYV was established in Q1 2020 at prices between $29.50 and $76 and it is now at ~$86.Danaher Corporation (DHR): DHR is a 2.53% of the portfolio position established in Q4 2013 at prices between $47 and $55 and increased by roughly five-times in Q2 2014 at prices between $52 and $59. The stock is now at ~$254.Note: The prices quoted above are adjusted for the Fortive spinoff in July 2017.Ansys Inc. (ANSS): ANSS is a 1.41% of the portfolio position established in Q4 2019 at prices between $214 and $259 and increased by ~190% next quarter at prices between $205 and $296. Q2 2020 saw another ~30% stake increase at prices between ~$211 and ~$294.  It is now at ~$327.AlarmCom Holding (ALRM): ALRM is a small 1.16% position first purchased in Q2 2015. Q3 2019 saw a ~130% stake increase at prices between $46 and $53. The four quarters through Q3 2020 had seen a ~43% further increase at prices between ~$37 and ~$71. The stock currently trades at ~$82.50.Goosehead Insurance (GSHD): GSHD is a minutely small position established in Q4 2018 and increased over the next two quarters. Goosehead had an IPO in April 2018 priced at $10. It has since gone up more than eight times and currently trades at ~$83.50. Q3 2020 saw a ~30% stake increase. The position is still very small at 0.18% of the portfolio.Berkshire Hathaway (BRK.A) (BRK.B): Berkshire Hathaway is now a minutely small 0.01% of the portfolio stake. Q1 2020 saw a small position almost sold out at prices between $162 and $230. The stock is now at ~$291.Lamar Advertising (LAMR), Ollie’s Bargain (OLLI), and The Trade Desk (TTD): These minutely small (less than ~0.30% of the portfolio each) stakes were kept steady during the quarter.Below is a spreadsheet that highlights the changes to Akre Capital Management’s 13F stock portfolio as of Q1 2021:Source: John Vincent. Data constructed from Akre Capital Management’s 13F filings for Q4 2020 and Q1 2021.10/29/2020 – Chuck Akre  EOY.Regulatory filings thru 2/10/2021: None.Q4 2020 Performance Summary: Performance: 20.37% vs 18.40% for S&P 500 for 2020. 17.03% since 2009 inception compared to 14.51% for the S&P 500. Cash: down from ~17% as of EOY 2019 to ~6% as of Q4 2020."