Capital Planning's 2.1% Bet on Akre Focus: Why This 15% Performer Caught Their Attention

In late January 2026, Washington-based Capital Planning LLC made a strategic decision that signals renewed confidence in active stock selection. The firm added a 2.1% allocation to the Akre Focus ETF, purchasing over 114,000 shares valued at $7.45 million. For a portfolio structure that relies heavily on low-cost index funds and factor-based strategies, this move represents something more than routine rebalancing—it reflects a deliberate bet that a concentrated, high-conviction fund can still generate differentiated returns.

From Mutual Fund to ETF: Understanding Akre’s Concentrated Investment Philosophy

The Akre Focus ETF (NYSE: AKRE) entered the market in late 2025 as a converted vehicle, bringing more than a decade of operating history from its previous incarnation as a mutual fund. This legacy matters because it gives investors a deeper track record than the recent listing date might suggest. Priced at $62.64 as of late January, the fund operates with a fundamentally different approach than its broader market cousins.

The strategy centers on business quality. The fund seeks out companies with sustainable competitive advantages, proven management teams, and the ability to reinvest capital at attractive rates of return. Unlike diversified indices that hold hundreds of positions, Akre maintains a tight portfolio—a concentrated book with conviction behind each selection.

The Portfolio Positioning: Why a Fund Heavy on Index Exposure Added a Selective Strategy

Capital Planning’s holdings paint a picture of traditional asset allocation. The bulk of its $357 million in reportable assets sit in broad-based S&P 500 trackers, growth factor ETFs, and dividend-focused strategies. Against this foundation of low-cost, market-tracking exposure, the 2.1% allocation to Akre looks intentional rather than incidental.

This positioning suggests the fund manager believes that stock selection—good old-fashioned security picking—can still add incremental value. The concentration in Akre also reveals a tolerance for higher variance in exchange for the possibility of outperformance, a trade-off that becomes more interesting when examining what’s actually inside the fund’s portfolio.

As of late January, Akre’s top five holdings included Mastercard, Brookfield, Constellation Software, Visa, and Moody’s—names that collectively represent approximately 50% of the portfolio. These positions cluster around themes of pricing power, durable competitive advantages, and capital-light business models. The fund charges a 0.98% expense ratio, reflecting its active, hands-on investment approach.

Performance Through Quality: The 15% Track Record Behind the Decision

The real conversation piece is performance. On a net asset value basis, Akre delivered 15.5% annualized returns over the three-year period ending in early 2026. That 15% neighborhood performance becomes the implicit justification for Capital Planning’s new position. In a market where passive strategies dominate allocations, a fund capable of generating mid-double-digit returns over a multi-year stretch commands attention.

Yet performance alone doesn’t drive portfolio decisions—philosophy does. Capital Planning’s allocation suggests recognition that concentrated portfolios built on fundamental analysis can still compete against the passive tide. The 2.1% stake isn’t massive, but in the context of a fund already committed to index-based strategies, it signals a calculated embrace of active management at the margin.

The decision also reflects confidence in the fund’s conversion to an ETF structure. The regulatory framework, lower costs than traditional active funds, and improved tax efficiency make the vehicle more appealing than the mutual fund format it replaced. For an institution evaluating where active selection might add value, the modern ETF wrapper removes one layer of friction.

What This Positioning Reveals About Value Investing Today

This transaction illustrates a subtle but important shift in how institutional capital evaluates active management. Rather than making a wholesale commitment to either passive or active approaches, Capital Planning is layering them—building a base of low-cost index exposure while reserving a meaningful slice for concentrated, idea-driven strategies.

The Akre allocation suggests that 15% annualized returns and a 0.98% fee structure can justify a 2.1% portfolio weight in a world otherwise dominated by passive trackers. It’s a vote of confidence that disciplined security selection, applied to quality compounders with strong management, can still generate the incremental returns that justify both the fees and the volatility. For investors watching how active strategies are evolving in the age of passive dominance, Capital Planning’s quiet addition to its lineup offers a data point worth considering.