Thoughts about Akre Focus Retail Class AKREX

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Topic Author
LookinAround
Posts: 133
Joined: Tue Mar 27, 2018 5:41 am
Location: Chicagoland

Thoughts about Akre Focus Retail Class AKREX

Post by LookinAround » Mon Jan 13, 2020 10:41 pm

I've been reviewing / re-evaluating the funds in my portfolio looking to rebalance and look if comparable funds with lower ER are an option

I own about 100K in Akre Focus Retail Class fund (AKREX). When I checked, the expenses are surprisingly high: ER 1.32% and a 12b-1 .25%.

Yet when I look at alternatives funds AKREX seems to eclipse the two low cost index funds I checked
> Vanguard Total Stock Admiral (VTSAX) and
> Vanguard US Growth Fund Admiral Shares (VWUAX) which Vanguard suggests as a comparable fund

I ran Portfolio Analyzer to compare the three funds. It starts @ Jan 2010 when AKRE fund first started. Comparing the three the AKRE fund stays far ahead of the two index funds. Thoughts? I'm inclined to keep AKREX in spite of its expenses based on these results. Am I missing something? What do you think?

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sfmurph
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Re: Thoughts about Akre Focus Retail Class AKREX

Post by sfmurph » Tue Jan 14, 2020 1:11 am

Are you in this because of Bob Brinker? Also, the management changed on this fund in the last 18 months or so.

lifeisinmirrors
Posts: 95
Joined: Fri Jul 06, 2018 6:15 pm

Re: Thoughts about Akre Focus Retail Class AKREX

Post by lifeisinmirrors » Tue Jan 14, 2020 3:24 am

It's a great fund, but few people on this board would recommend something with those expenses.

The fund's turnover is only 3%, I think you could beat it just by buying the same 18 stocks it holds with no fees.

Bug
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Location: Il.

Re: Thoughts about Akre Focus Retail Class AKREX

Post by Bug » Tue Jan 14, 2020 12:23 pm

I have also been invested in Akre focus fund since its beginning. This fund has really done well for me despite its fee ( 1.32% ).
I have had the same thoughts as you on keeping this fund. I consider it as a bonus fund to my three fund portfolio. I did invest in this fund years ago when I subscribed to Bob Brinker and before I discovered this forum. I’m thinking about just selling half since luckily it’s in my Roth IRA.

Topic Author
LookinAround
Posts: 133
Joined: Tue Mar 27, 2018 5:41 am
Location: Chicagoland

Re: Thoughts about Akre Focus Retail Class AKREX

Post by LookinAround » Tue Jan 14, 2020 3:28 pm

sfmurph wrote:
Tue Jan 14, 2020 1:11 am
Are you in this because of Bob Brinker? Also, the management changed on this fund in the last 18 months or so.
lifeisinmirrors wrote:
Tue Jan 14, 2020 3:24 am
It's a great fund, but few people on this board would recommend something with those expenses.
Bug wrote:
Tue Jan 14, 2020 12:23 pm
I have had the same thoughts as you on keeping this fund. I consider it as a bonus fund to my three fund portfolio. I did invest in this fund years ago when I subscribed to Bob Brinker and before I discovered this forum. I’m thinking about just selling half since luckily it’s in my Roth IRA.
I know most on this forum wouldn't recommend the AKRE Focus fund due to its high ER. If I wasn't already in, I'd probably not buy it either. I am rebalancing and looking to reduce my stock allocation. That's why I took a closer look at the AKRE fund. I was quite surprised myself when I ran Portfolio Analyzer to see how well it out performed the two low ER Vanguard funds.

And yes, I did get it from Bob Brinker too. (I first learned investing from him while listening to him on the radio during my to/from work commute) I still get his newsletter but just use it as input as I go my own path in investing.

I haven't start rebalancing yet. I'm thinking to still hang onto it for a while and trim something else in my portfolio. I'll be selling off some of my Microsoft and Home Depot I first bought in the 90's also due to Brinker.

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