Akre Capital's Q1 2025 Portfolio: Betting on Durable Winners in a Volatile Market

In a market where volatility has become the norm, Akre Capital’s Q1 2025 portfolio moves reveal a contrarian playbook: double down on secular winners, cut the overvalued, and hunt for overlooked bargains. With $10.4 billion concentrated in just 18 stocks—94.74% of its value in the top 10 holdings—the firm is sending a clear message: conviction in high-quality franchises trumps diversification in turbulent times. Let’s dissect the strategy.

The Ironclad Core: Why Akre’s Top Holdings Are Built to Last

At the heart of Akre’s portfolio are Mastercard (MA) and Visa (V), accounting for nearly 28% of the fund. These are not just payment giants; they’re cash flow dynamos with pricing power in a digital economy. Even as the portfolio shed 13.29% in value, Akre doubled down on these secular winners.

Their dominance in cross-border transactions and recurring revenue streams make them recession-resistant. Meanwhile, Moody’s (MCO)—a top holding despite a 20.9% stake reduction—retains its edge in credit ratings, a critical backbone for global markets. The cut signals a tactical trim, not a loss of faith in the business.

The Contrarian Play: Three Buys in Undervalued Sectors

While trimming overexposed positions, Akre added Airbnb (ABNB), CCC Intelligent Solutions (CCCS), and Brookfield Corp (BN)—stocks that signal a hunt for mispriced assets in overlooked sectors.

1. Airbnb (ABNB): A 10.13% stake increase hints at a bet on post-pandemic travel recovery. With shares trading at a 15% discount to their 52-week high, this is a contrarian play on a company with $3.5B in cash and a platform primed for urbanization trends.
2. CCC Intelligent Solutions (CCCS): A 23.49% stake boost targets the $120B automotive parts market, where CCCS’s AI-driven supply chain solutions are gaining traction. Its valuation at 8x EV/Sales suggests it’s still flying under Wall Street’s radar.
3. Brookfield Corp (BN): A 0.66% stake increase reflects a shift toward infrastructure plays with pricing power. Unlike AMT (cut by 52.95%), Brookfield’s focus on regulated utilities and renewables offers steadier returns in a rate-sensitive environment.

The Cuts: Pruning the Overvalued, Not the Strong

Akre’s 12 reduced positions reveal a ruthless focus on value discipline. The 52.95% stake reduction in American Tower (AMT) stands out. While AMT’s cell towers are critical infrastructure, its 40% surge in price over the past year likely made it overbought. Similarly, trimming Roper Technologies (ROP)—a 2.21% cut—suggests skepticism about its $20B price tag.

But the boldest move was in Moody’s (MCO): despite its 10.9% portfolio weight, Akre reduced shares by 20.9%. This isn’t about the company’s fundamentals, but its valuation premium. MCO’s price-to-earnings multiple (35x) dwarfs its historical average (25x), signaling a tactical rebalance to lock in gains.

Why This Matters for Investors

Akre’s strategy is a masterclass in sector resilience. By leaning into financials (37.95% of the portfolio) and technology-driven services (28.29%), it’s hedging against cyclical downturns. The fund’s average holding period of over 10 years underscores a long-term compounding mindset—a rare trait in a world of quarterly earnings fixation.

The 94.74% concentration isn’t reckless; it’s a vote of confidence in companies with moats, recurring revenue, and pricing power. In a market where 80% of active managers underperform benchmarks, Akre’s focus on quality over quantity is a beacon for patient investors.

Actionable Takeaway

Follow Akre’s lead:
- Buy the core: MA, V, and MCO (despite the cut) remain bedrock holdings.
- Dip into the new buys: ABNB and CCCS offer asymmetric risk/reward at current prices.
- Avoid the overvalued: Steer clear of AMT and ROP unless there’s a meaningful correction.

Akre’s portfolio is a roadmap for investors who prioritize durable growth over noise. In a volatile market, this is how you build wealth for decades—not quarters.

Invest with conviction. Invest with Akre’s vision.