Why We Nominated These 3 Equity Managers
Learn what we look for in our annual awards.
Susan Dziubinski: Hi, I'm Susan Dziubinski with Morningstar.com. Morningstar recently awarded its 2020 Awards for Investing Excellence. Today, we're looking at three equity funds run by managers who were nominated this year.
Kevin McDevitt: Akre Focus is a Silver-rated large-cap growth fund, and it's been very successful since the 2009 inception thanks to lead manager, Chuck Akre. Now again, Akre has managed this fund since its 2009 inception, and during that time, the fund beat the Russell 1000 Growth Index by about 1.6 percentage points annualized, which is especially impressive considering how difficult of a bogy that has been to beat. Now, Akre has done this by investing in companies with what he calls the "three-legged stools." That, is they have, first of all, sustainable competitive advantages within their business, and they generate high amounts of free cash flow. Second, they have shareholder-oriented management teams. And third, they're able to reinvest that free cash flow at high rates of return. This combination of factors, this combination of qualities, are what Akre calls "compounders"--that is, companies that will compound capital at high rates of return for years to come.
Kevin McDevitt does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.