This Adviser Added a $7 Million Stake in an ETF Built on 3 Core Ideas

Oklahoma-based JBR Co Financial Management initiated a new position in the Akre Focus ETF (NYSE:AKRE), acquiring 108,793 shares in the fourth quarter. The estimated transaction value was $7.13 million based on quarter-end pricing, according to a Tuesday SEC filing.

What Happened

According to a SEC filing released Tuesday, JBR Co Financial Management established a new stake in the Akre Focus ETF (NYSE:AKRE), acquiring 108,793 shares. The quarter-end value of the position stood at $7.13 million.

What Else to Know

The position represents 2.98% of 13F reportable AUM as of December 31.

Top holdings after the filing:

• NASDAQ: NVDA: $34.79 million (14.7% of AUM)
• NYSEMKT: BIL: $12.10 million (5.1% of AUM)
• NYSEMKT: VGT: $11.78 million (5.0% of AUM)
• NYSEMKT: SPYM: $10.87 million (4.6% of AUM)
• NASDAQ: QQQM: $9.52 million (4.0% of AUM)

As of Tuesday, AKRE shares were priced at $66.00.

ETF Overview

ETF Snapshot

• The Akre Focus ETF offers a diversified portfolio of U.S. equities, including common and preferred stocks, warrants, options, cash equivalents, and select foreign securities.
• It operates as an actively managed ETF, focusing on companies with strong shareholder returns, reputable management, and robust reinvestment opportunities, aiming to acquire holdings at reasonable valuations.
• The fund targets institutional and retail investors seeking exposure to high-quality businesses with long-term growth potential through a disciplined, research-driven approach.

The Akre Focus ETF provides investors access to a concentrated portfolio emphasizing business quality, management integrity, and capital reinvestment strength. The fund's strategy is rooted in identifying U.S. companies with sustainable competitive advantages and attractive growth prospects, while maintaining flexibility to invest in select foreign securities and alternative equity instruments. The disciplined investment process and clear sell criteria support a long-term focus on value creation and risk management.

What this transaction means for investors

Initiating a fresh position in the Akre Focus ETF suggests growing comfort with actively managed ETFs that look very little like the index-based products most investors know. For long-term investors, that matters because structure and philosophy can be just as important as individual stock picks.

The Akre Focus ETF only recently began trading after converting from a long-running mutual fund, bringing roughly $10 billion in assets into an ETF wrapper designed to improve tax efficiency and transparency. The strategy remains unchanged. It runs a deliberately concentrated portfolio built around Akre Capital’s Three-Legged Stool framework, emphasizing business quality, management integrity, and reinvestment potential. As of early January, its largest holdings included Mastercard, Brookfield, Constellation Software, and KKR, underscoring a clear tilt toward durable compounders rather than broad market exposure.

This position sits alongside large allocations to Nvidia, broad tech ETFs, and short-term Treasury exposure, suggesting the ETF functions as a quality anchor rather than a tactical trade. With an expense ratio of 0.98% and a non-diversified mandate, this is not meant to replace index funds. Ultimately, this seems to point to a broader trend in which the ETF format is increasingly being used to house high-conviction strategies once locked inside mutual funds. Access, liquidity, and tax efficiency improve, but the underlying bet effectively remains the same.

Glossary

Actively managed ETF: An exchange-traded fund where managers select investments, aiming to outperform a benchmark, rather than tracking an index.
13F reportable AUM: Assets under management that must be disclosed in quarterly SEC Form 13F filings by institutional investment managers.
Quarterly average pricing: The average price of a security over a specific quarter, used to estimate transaction values.
Stake: The ownership interest or amount of shares held in a company or fund.
Top holdings: The largest investments within a portfolio, typically ranked by market value.
Concentrated portfolio: An investment portfolio focused on a limited number of securities, increasing potential risk and reward.
Shareholder returns: The total gains received by shareholders, including dividends and stock price appreciation.
Reinvestment opportunities: Chances for a company to reinvest profits into its business for future growth.
Sustainable competitive advantages: Unique strengths that allow a company to outperform competitors over the long term.
Sell criteria: Predefined rules or guidelines for when to sell an investment from a portfolio.
Alternative equity instruments: Financial assets like warrants or options that represent ownership or potential ownership in a company.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.