Akre Focus ETF Attracts Significant Institutional Interest from Canal Capital Management

Canal Capital Management has made a substantial investment move, establishing a new position in the Akre Focus ETF (NYSE:AKRE) during the fourth quarter. The fund manager acquired over 175,000 shares—specifically 175,232 shares—in this strategically concentrated exchange-traded fund. Based on the quarter’s average pricing, this stake carries an estimated valuation of $11.5 million, representing 1.6% of the firm’s total reportable assets under management.

Strategic Portfolio Addition

According to SEC filings dated January 6, Canal Capital Management’s acquisition of the Akre Focus ETF reflects deliberate institutional interest in a fund known for its disciplined investment methodology. The fund pursues a specialized strategy emphasizing companies demonstrating high returns on invested capital, substantial reinvestment potential, and management teams genuinely focused on shareholder value creation. The fund’s selective approach spans traditional equity securities, convertible instruments, and international opportunities across multiple sectors.

Fund Performance and Portfolio Composition

As of early January 2026, shares of AKRE traded at $66.59 per share, reflecting a market capitalization of approximately $9.96 billion. The fund maintains a concentrated investment thesis, with its 10 most significant holdings representing over 81% of total assets. Top equity positions include Mastercard (NYSE: MA), Brookfield (NYSE: BN), and KKR (NYSE: KKR), followed by other strategic holdings in Old Dominion Freight Line (NASDAQ: ODFL), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT).

After Canal Capital Management’s transaction, the fund’s portfolio composition showed notable diversification: NASDAQ-listed ODFL commanded $58.79 million (8.3% of assets under management), Apple held $34.81 million (4.9% of AUM), and Microsoft represented $26.07 million (3.7% of AUM). Corporate bond exposure through NYSEMKT: LQD totaled $20.15 million, while semiconductor holdings in Broadcom (NASDAQ: AVGO) amounted to $19.06 million (2.7% of AUM).

Evaluating Performance Against Benchmarks

The actively managed ETF operates with an expense ratio of 0.98%, a consideration that substantially impacts long-term investor returns. However, recent performance data reveals concerning trends when measured against the S&P 500 index. Throughout 2025, the Akre Focus ETF delivered a return of 1.1%, significantly underperforming the broader market index’s robust 17.9% gain. Over an extended 10-year horizon, the fund’s 13.8% annualized total return trailed the S&P 500 by approximately 1.1 percentage points—a notable shortfall for an actively managed strategy.

Despite its concentrated approach and disciplined research process, the fund has struggled to generate superior returns through its market cycle selection and security picking prowess. This performance gap raises questions about whether the fund’s selective investment approach—focusing on high-quality businesses at reasonable valuations—will persist in generating excess returns going forward. Canal Capital Management’s substantial commitment, representing over 175,000 shares of the fund itself, suggests confidence in its long-term investment philosophy despite recent underperformance relative to broad equity indices.