The firm historically operated with a lean team under founder Chuck Akre, who posted strong results before stepping down from the Akre Focus strategy in 2020. However, a generational handoff from Akre to his successors has n't gone as planned. Comanager Chris Cerrone departed in September 2023, three years after he joined the management team. He was the second comanager to leave, following Tom Saberhagen in 2019. John Neff, a manager since 2014, is now solo, presenting key-person risk. Two analysts, at the firm since 2019 and 2021, offer support but lack sufficient experience should something happen to Neff. What's more, the departures of the two comanagers and two former associates raise questions about the firm's ability to attract and retain talent; Neff is the only team member who has lasted.
The firm, which had $13.6 billion in assets as of September 2023, stays within its circle of competence. It's stayed true to Akre's time-tested, high-conviction process, which has produced decent long-term returns during Neff's involvement. The firm's avoidance of trendy product launches is laudable. However, high fees across all three share classes are a headwind and are hard to justify given the strategy's low-turnover approach and lean team.