We strive to concentrate shareholder capital in a limited number of extraordinary businesses. The three components to this analysis are business, management, and reinvestment. When we discover businesses demonstrating excellence in each leg of the stool, we refer to these businesses as “compounding machines”. We aim to purchase shares at a reasonable valuation upon entry or addition.
Business
- Identifiable, sustainable competitive advantages
- Enduring, predictable high return on invested capital
- Pricing power in excess of costs, inflation protection
- Easy to understand
- Strong balance sheets
Management
- Management with exceptional skill, integrity, and passion
- Treat shareholders like partners
- Indifferent to Wall Street's short-term focus
- Compensation rationally determined
Disciplined Reinvestment
- Pattern of disciplined reinvestment
- Expensive opportunities to reinvest free cash flow* organically or through acquisitions
Compounding Machine
*Free cash flow (FCF) represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base.
Investing involves risk. Principal loss is possible. The Fund is non-diversified, meaning it may focus its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than a diversified fund. In addition to large capitalization companies, the Fund invests in small- and medium- capitalization companies, which involve additional risks such as limited liquidity and greater volatility than larger capitalization companies. Download the prospectus.
This fund is an actively-managed ETF that does not seek to replicate the performance of a specified index. To determine whether to buy or sell a security, the portfolio manager considers, among other things, various fund requirements and standards, along with economic conditions, alternative investments, interest rates and various credit metrics. If the portfolio manager considerations are inaccurate or misapplied, the fund’s performance may suffer.
Exchange-Traded Funds (ETFs) are bought and sold through exchange trading at market price (not NAV), and are not individually redeemed from the fund. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns.
The Akre Focus ETF is distributed by Quasar Distributors, LLC.