Chuck Akre’s Akre Focus Fund commentary for the third quarter 2014.
As you are aware, prices in the third quarter declined by a modest amount in general, but significantly in a few places that interested us a great deal. We actually welcome the current disruption in the market, as it presents us with an opportunity to add to our investments in several of our favorite holdings at more favorable valuations. This is thoroughly consistent with our long-term outlook as investors rather than speculators of stock prices. The Akre Focus Fund Retail Class (MUTF:AKREX) and Akre Focus Fund Institutional Class (MUTF:AKRIX) returned -1.42% and -1.36%, respectively, net of fees and expenses in the third quarter of 2014 versus the S&P 500 with a return of 1.13% for the same period.
Chuck Akre’s Akre Focus Fund’s contributors American Tower, Moody’s; detractors Colfax, Markel
Our positions in American Tower Corp (NYSE:AMT) and Moody’s Corporation (NYSE:MCO) were the largest contributors to performance over the quarter. Colfax Corp (NYSE:CFX) and Markel Corporation (NYSE:MKL) were the most meaningful detractors from performance over the quarter. At the end of the third quarter the Fund was approximately 94.3% invested and the portfolio held 30 positions.
| Performance | Average Annual Returns % as of 9-30-14 | |||||
| Net Assets | QTD | YTD | 1 YR | 3 YR | 5 YR | ITD† |
| Retail Share Class (AKREX) | -1.42 | 3.36 | 13.05 | 23.50 | 17.49 | 17.23 |
| Institutional Share Class (AKRIX) | -1.36 | 3.57 | 13.31 | 23.85 | 17.81 | 17.54 |
| S&P 500 Index | 1.13 | 8.34 | 19.73 | 22.99 | 15.70 | 16.26 |
Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Fund performance current to the most recent month–end may be lower or higher than the performance quoted and can be obtained by calling 1-877-862-9556. The Fund’s annual operating expense (gross) for the Retail Class shares is 1.36% and 1.11% for the Institutional Class shares. The Fund imposes a 1.00% redemption fee on shares held less than 30 days. Performance data does not reflect the redemption fee, and if reflected, total returns would be reduced.
†Akre Focus Fund AKREX/AKRIX incepted 8-31-09.
As always we thank you for your confidence in our firm’s ability to manage your assets. Do know that we treat each dollar as if it were our own, striving to achieve desirable outcomes.
Chuck Akre, Tom & John
Mutual fund investing involves risk. Principal loss is possible. The Fund is non diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than a diversified fund. The Fund invests in small- and medium- capitalization companies, which involve additional risks such as limited liquidity and greater volatility than larger capitalization companies.
The Fund’s investment objectives, risks, charges, and expenses must be considered carefully before investing. The summary and statutory prospectus contains this and other important information about the investment company and it may be obtained by calling (877) 862 9556 or visiting www.akrefund.com. Read it carefully before investing. Fund holdings and sector allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security.
The composition of the sector weightings and fund holdings are subject to change and are not recommendations to buy or sell any securities. Cash and Equivalents include asset backed bonds, corporate bonds, investment purchased with cash proceeds for securities lending, and other assets in excess of liabilities.
The S&P 500 is a broad based unmanaged index of 500 stocks, which is widely recognized as representative of the equity market in general. It is not possible to invest directly in an index.
The Akre Focus Fund is distributed by Quasar Distributors, LLC.
