Akre hits the Jackpot

Ah, summer Friday’s.

Lightly staffed trading desks. AWOL bosses. Quiet markets.

Well, hopefully your boss is long gone. Most MD’s should be in East Hampton by guarding their Privet from predatory neighbors.

And the market is anything but quiet. And while you might be making money, you are not keeping up with everyone.

Charles Akre of Akre Capital Management is the King of Wall Street, at least for a day. The largest holder of Penn National Gaming (PENN-NASDAQ) saw his assets under management tick up a little shy of $100 million this morning when Penn National opened for trading. Good news too for holders of the FBR Small Cap fund, where the stock is a monster position.

Top of the sheets. Over 11% of the fund’s assets.

“When a high-quality management team is coupled with a high-return business with ample reinvestment opportunities, we have what we have described over the years as a “compounding machine”—a business that can compound our capital for long periods of time at an above average rate.” MF

Akre’s performance often finds him ranked first or last against hundreds of his Small Cap peers. Volatile performance for sure, but he comes out at the head of this class over the 5 and 10-year periods. This should help him close the gap on the year-to-date leaders, given he lagging behind a bit.

Fellow small-cap legend Ron Baron’s position is nearly as big as Akre’s. Just In the nick of time, he will need the money to beef up his hedgerow as his house nears completion.

Of course, a higher offer might materialize. That would really make their summer.

Stay tuned to this one.

Penn National Agrees to $6.1 billion Buyout
AP
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The content contained represent the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. No position in securities mentioned

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