Akre Focus Fund commentary for the second quarter ended June 30, 2015.

The Akre Focus Fund Retail Shares (AKREX) and Institutional Shares (AKRIX) returned 1.95% and 2.01%, respectively, net of fees and expenses in the second quarter of 2015 versus the S&P 500 TR with a return of 0.28% for the same period.

Our positions in MasterCard and Moody’s were the largest contributors to performance over the quarter. Dollar Tree and Colfax were the most meaningful detractors from performance over the quarter. At the end of the first quarter, the Fund was approximately 91% invested and the portfolio held 31 positions.

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Akre Focus Fund: Global macro issues

We are being asked more about macro issues these days. In our opinion, Greece, ISIS, the volatile Chinese stock market, and U.S. stock valuations seem to be the most common sources of anxiety. As you have come to expect, we offer no prognosis on the balance of the year or on the years following. Our experience assures us that there are always worrisome issues in the world. We believe that the best remedy for an uncertain world is a portfolio of exceptional businesses that are led by trustworthy and skilled managers. We focus all of our time and energy in pursuit of these rare businesses and believe the portfolio is well positioned in this regard.

Furthermore, we intend to hold onto these businesses for the long term. Most periods of market dislocation are measured in months while our investment horizon is measured in years, sometimes decades. We encourage you to look at a one hundred year chart of the S&P 500. Libraries of books have been written about the various panics and bear markets along the way. However, notwithstanding the very real discomfort these downturns create, we believe most appear increasingly inconsequential with the passage of time.

As always, we thank you for your confidence in our firm’s ability to manage your assets. Please know that we treat each dollar as if it were our own, striving to achieve desirable outcomes.

Chuck, Tom, & John

Akre Focus Fund

Akre Focus Fund

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