One Fund Just Bet $3 Million on an ETF Down 10% During a Bull Market

S.A. Mason initiated a new position in the Akre Focus ETF (NYSE:AKRE), purchasing 45,209 shares in the fourth quarter for an estimated $2.96 million, according to a January 29 SEC filing.

What happened

According to a SEC filing dated January 29, S.A. Mason established a new position in Akre Focus ETF (NYSE:AKRE), adding 45,209 shares. The net position change for the quarter-end was $2.96 million, reflecting the share value as of December 31.

What else to know

This is a new position and now comprises 1.17% of S.A. Mason’s reportable U.S. equity assets under management.

Top five holdings after the quarter:

• NASDAQ: NVDA: $15.20 million (6.0% of AUM)
• NYSEMKT: VTI: $9.42 million (3.7% of AUM)
• NASDAQ: MSFT: $7.42 million (2.9% of AUM)
• NYSEMKT: IVV: $7.33 million (2.9% of AUM)
• NYSEMKT: VSDM: $6.39 million (2.5% of AUM)

As of January 29, shares of the Akre Focus ETF were priced at $61.15, down about 10% over the past year, compared to a 15% gain for the S&P 500.

ETF overview

ETF snapshot

• AKRE offers an actively managed portfolio of U.S. equities and equity-like instruments, including preferred stocks, warrants, options, REITs, and convertible securities.
• The fund generates returns through capital appreciation and income by investing in companies with high shareholder returns, strong management, and reinvestment potential, with a disciplined approach to valuation and portfolio turnover.
• It targets institutional and individual investors seeking exposure to a concentrated portfolio of high-quality U.S. and select foreign equities.

The Akre Focus ETF employs a focused investment strategy, selecting companies with sustainable competitive advantages and robust capital allocation practices. The fund prioritizes long-term growth by investing in businesses with proven management teams and attractive reinvestment opportunities. Its disciplined approach to security selection and portfolio management aims to deliver consistent risk-adjusted returns for investors.

What this transaction means for investors

The Akre Focus ETF has fallen about 10% since its October launch, falling well short of the S&P 500’s roughly 1% gain in the same period and creating a rare divergence between passive benchmarks and high-conviction active strategies.

The portfolio itself helps explain the appeal. The fund runs a tightly focused structure, with its top holdings dominated by capital-light compounders like Mastercard, Brookfield, Constellation Software, Visa, and Moody’s, each designed to reinvest at high incremental returns over long cycles. As of mid-January, the top 10 positions accounted for the bulk of assets, reflecting a mandate that prioritizes durability over diversification.

That concentration contrasts sharply with the buyer’s broader exposure to mega-cap tech and index funds, suggesting this addition is meant to complement, not replace, core beta. For long-term investors, the takeaway is less about near-term performance and more about patience. When concentrated strategies lag in momentum-driven markets, they often do so quietly, setting the stage for sharper relative gains when fundamentals reassert themselves.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft, Nvidia, and Vanguard Total Stock Market ETF. The Motley Fool has a disclosure policy.