Akre Capital Management’s Stock Picks for 2013 Include Mastercard

Page 1 of 2

Charles Akre’s Akre Capital Management has filed its 13F for the fourth quarter of 2012, disclosing many of its long equity positions as of the end of December. We have been tracking 13F filings from hedge funds and other notable investors to build our database of filings, which can then be used to help find investments that are likely to beat the market based on historical trends. For example, the most popular small cap stocks among hedge funds tend to be good picks; our list of these stocks from our August newsletter produced an excess return of 18 percentage points between September and January (read more about our hedge fund strategies). Of course a more basic way to use 13Fs is to review a fund’s top stock picks and see if they are worthy of further research. Here are our thoughts on Akre’s five largest holdings going into 2013 (compare these top picks to those in previous filings):

Mastercard Inc (NYSE:MA)

The fund’s top pick was Mastercard Inc (NYSE:MA) with Akre reporting a position of about 340,000 shares. The credit card company reported a 10% increase in revenue last quarter compared to the fourth quarter of 2011, and earnings were up as well (though at a rate that is not likely to continue). Mastercard was one of the most popular services stocks among hedge funds in the third quarter of 2012 (see the top ten services stocks). However, the trailing earnings multiple is quite high at 24 and we think that other credit card stocks including Capital One Financial Corp. (NYSE:COF) and Discover Financial Services (NYSE:DFS) might be better value prospects.

Akre owned 1.7 million shares of American Tower Corp (NYSE:AMT) at the end of December. American Tower operates as a real estate investment trust, giving the company a favorable tax status as long as it distributes a large share of its income to shareholders. While this setup often results in high yields, American Tower’s dividend yield is not very high at just over 1%. Billionaire Ken Griffin’s Citadel Investment Group more than tripled the size of its position in the stock during the third quarter and closed September with 2.1 million shares in its portfolio (check out Griffin’s stock picks).

See three more of Akre’s favorite stocks, including a Warren Buffett stock pick:

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!