Mutual Fund of the Week (AKREX)

[oldskeet]

This Fund Delivers Big Gains Without Big Tech

Taken from the article: "The Akre Focus fund looks a bit different since legendary investor Chuck Akre began turning the reins over to co-managers John Neff and Chris Cerrone, but the goal is still transcendence. The duo still buy the companies Akre described in the late 1980s as “the nirvana in investing”—superior businesses that are exceptionally well-managed."

www.barrons.com/articles/akre-focus-fund-delivers-big-gains-without-big-tech-51626943502

Market Watch Fund Report: www.marketwatch.com/investing/fund/akrex

The MarketWatch fund score for ARKEX is 20 points from a possible total score of 25.

[Chahta]

I have owned it for a long time. It is perfect for my taxable account.

[Deleted]

I also owned it for long time and then sold it recently as Charles Akre retired. May be I should have kept it. New managers are doing decent.

[mrc]

@waffle,


Why do you have to sell the fund when long term manager retires? You could have given some time to the current managers before deciding it.
I bought the fund a few months after it inception, and its my most successful fund investment so far. I brought it down to 5% from 7% allocation yesterday. Not because of the manager change, but the valuations. The fund has now PE of 34 PB of 6.79.

[mrc]

I forgot to add this in my previous post.

I vaguely remember Akre holding 30%+ in cash in FBR focus fund that he was managing then during dot.com bubble in 1999-2000 period, whereas now the fund hardly holds any cash.

The reason I am comparing is valuations are very high at both times. The only difference is that only Tech & Telecom were expensive then, but many (sub) asset classes, sectors (smallcap, value, EM, Energy, Real Estate; And all of these outperformed LG subsequently until 2008 bear market) were cheap then. However, there is barely anything cheap now.

[Chahta]

Jul 23, 2021 2:47:30 GMT mrc said:

@waffle,


Why do you have to sell the fund when long term manager retires? You could have given some time to the current managers before deciding it.
I bought the fund a few months after it inception, and its my most successful fund investment so far. I brought it down to 5% from 7% allocation yesterday. Not because of the manager change, but the valuations. The fund has now PE of 34 PB of 6.79.

I sold it in Jan. 2020 to realize a gain and reset my cost, all for free. Bought it back the next day. My CG tax was 0%. I could do it again this year but I want to do a Roth conversion. Living off my taxable account for free is so nice. I am running around 6% now.