FAQ
INVESTING
- What is the Akre Focus Fund and how do I invest?
The Akre Focus Fund is a no-load mutual fund managed by Akre Capital Management, offering both investor and institutional share classes. The fund is available directly by completing and submitting an application to us (see How to Invest tab at left), or can be accessed through most major brokerage platforms, including Schwab, Fidelity, TDAmeritrade, and Pershing.
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- Who is Akre Capital Management?
Akre Capital Management, LLC is an independent Registered Investment Advisor located in Middleburg, VA. Chuck Akre, the founder of the firm, has been managing portfolios since 1986, and has worked in the industry for over 40 years. The firm currently (8/26/09) has over $300 million in assets under management, and recently (8/22/09) resigned its role as the sole sub-advisor to the FBR Focus Fund ( $1Billion at the time ), where Chuck Akre had been the only portfolio manager since the inception (12/31/96) of the fund.
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- How does Akre decide where to invest the Akre Focus Fund?
First, the Akre Focus Fund is a "focus" fund, which highlights our belief that a few smart investments can provide greater returns than lots of poor investments. In a nutshell, we look to invest over the long-term in companies that we perceive to be "compounding machines". We use a three step investment process to identify these types of firms, and then apply a valuation overlay to pay what we believe are reasonable costs to own the stock. Our three steps have us seeking companies that (1) have delivered high rates of return and appear poised to continue doing so, (2) are run by business managers that act with integrity in the best interests of all shareholders, and (3) offer opportunities for managers to reinvest cash flow internally and drive considerable business growth.
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- I recognize Chuck Akre's name as the only manager of the FBR Focus Fund from its inception until 8-22-09, and wonder why he left to start the Akre Focus Fund?
You are correct in noting that during that time, Chuck was the sole portfolio manager of that fund. As an advisor, we are able to establish and maintain direct investor relationships in a way that we could not as a sub-advisor. Having these direct relationships is much more in keeping with our desire to treat our investors as our partners.
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- What is the minimum investment?
The initial minimum investment for Retail Class is $2,000,
for Institutional Class $250,000.
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.
While the fund is no-load, management fees and other expenses still apply.
References to other funds should not be interpreted as an offer of those funds.
