AKRE FOCUS FUND

Akre Focus Fund Commentary

First Quarter 2018
Our 2018 first quarter performance for the Institutional share class was +4.18% compared with
S&P 500 Total Return at -0.76%. For the trailing twelve months ending March 31, 2018,
performance for the Institutional share class was +28.54% compared with S&P 500 Total Return
at +13.99%.
Our top-5 performers this quarter were Mastercard, Moody’s, Constellation Software, Roper, and
Visa. These long-time holdings continued to produce excellent fundamental results. As you know,
excellent fundamental results are sometimes (but not always) reflected in share price gains. This
quarter we thought there was a good correspondence.
The notable performance detractor in the quarter was Dollar Tree. On March 7th the Dollar Tree
share price declined more than 14% as management communicated the decision to retain and
reinvest about $100M of the expected $250M tax reform benefit in 2018. Most of the
reinvestment will be in higher wages and better benefits for workers.
We dwell on this story for a moment because we believe it tells the bigger story of what we see
going on in our economy. The best businesses with the least challenging competitive
environments (e.g., our top-5 performers listed above) are great beneficiaries of the strong
economy and tax reform, whereas businesses in more competitive environments (including
retailers, such as Dollar Tree) are seeing these benefits substantially offset by rising wages and
other costs.
Other market news in the quarter included a spike in volatility as measured by the commonly
talked about “VIX” index and questions on whether the VIX is manipulated. This had very little
bearing on our thought process. News media also focused on privacy issues at Facebook and
the future of the so-called “FANG” large technology businesses. Together, Apple-Amazon-
Facebook-Alphabet-and-Netflix comprised more than 11% of the S&P 500 Index in the quarter.
We don’t own shares in any of these.

Performance Total Annualized Returns % as of 03/31/18

Since Inception
Net Assets QTD YTD 1 YR 3 YR 5 YR 8/31/09
Retail Share Class (AKREX) 4.10 4.10 28.20 13.76 15.73 16.17
Institutional Share Class (AKRIX) 4.18 4.18 28.54 14.07 16.03 16.48
S&P 500 TR -0.76 -0.76 13.99 10.78 13.31 14.08

Performance data quoted represents past performance and does not guarantee future results. The
investment return and principal value of an investment will fluctuate so that an investor’s shares, when
redeemed, may be worth more or less than their original cost. Fund performance current to the most
recent month-end may be lower or higher than the performance quoted and can be obtained by calling
1-877-862-9556. The Fund’s annual operating expense (gross) for the Retail Class shares is 1.33% and
1.05% for the Institutional Class shares. The Fund imposes a 1.00% redemption fee on shares held less
than 30 days. Performance data does not reflect the redemption fee, and if reflected, total returns would
be reduced.

Mutual fund investing involves risk. Principal loss is possible. The Fund is non-diversified, meaning it
may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is
more exposed to individual stock volatility than a diversified fund. The Fund invests in small- and
medium- capitalization companies, which involve additional risks such as limited liquidity and greater
volatility than larger capitalization companies.

Akre Capital Management, LLC | 2 West Marshall Street, Middleburg, Virginia 20117 | 540-687-3880 | akrecapital.com | akrefund.com
 AKRE FOCUS FUND

In our view, what mattered more than “FANG” headlines was the poor performance from a wide
variety of large consumer, retail, energy, utility, bank, and industrial businesses. We count more
than a third of the S&P 500 companies having a decline of greater than 5% in the quarter. A lot
more is going on aside from Facebook! The fact we had relatively fewer of these situations helped
us more than did our lack of “FANG”.

Chuck, Tom, & John

Top Ten Holdings as of 03/31/18 Sector Weightings as of 03/31/18

% of net % of net
Name assets Type assets
American Tower Corp. 12.4% Information Technology 27.0%
Moody's Corp. 11.5% Financials 25.8%
Mastercard, Inc. 10.5% Real Estate 18.2%
Visa, Inc. 8.1% Consumer Discretionary 16.8%
Markel Corp. 6.9% Industrials 8.9%
SBA Communications Corp. 5.8% Health Care 2.2%
Dollar Tree, Inc. 5.5% Cash & Equivalents 1.1%
Roper Technologies, Inc. 5.4%
O’Reilly Automotive, Inc. 5.3%
Constellation Software, Inc. 4.7%

The composition of the sector weightings and fund holdings are subject to change and are not
recommendations to buy or sell any securities. Cash and Equivalents include asset backed bonds,
corporate bonds, municipal bonds, investment purchased with cash proceeds for securities lending,
and other assets in excess of liabilities.

The S&P 500 TR is a broad based unmanaged index of 500 stocks, which is widely recognized as
representative of the equity market in general. It is not possible to invest directly in an index.

The VIX Index is a popular measure of the stock market's expectation of volatility implied by S&P 500
index options, calculated and published by the Chicago Board Options Exchange.

The Fund’s investment objectives, risks, charges, and expenses must be considered carefully before
investing. The summary and statutory prospectus contains this and other important information about
the investment company and it may be obtained by calling (877) 862-9556 or visiting
www.akrefund.com. Read it carefully before investing.

The Akre Focus Fund is distributed by Quasar Distributors, LLC.

Akre Capital Management, LLC | 2 West Marshall Street, Middleburg, Virginia 20117 | 540-687-3880 | akrecapital.com | akrefund.com