The current market environment in the US has volatility as its new norm. Careful investors are taking shelter to the guidance of veteran experts. Among these experts is founder Charles Acre Akre Capital Management. Charles Acre used his disciplined investment approach to curate a list of stocks poised for a notable appreciation. He left the role of PM in 2020, but even today, nine of Akre Capital’s top 10 shareholdings began before 2020. Only one of the top 10 stocks was selected by John Neff, responsible for managing AkreCapital’s portfolio. Today we will look at the 10 shares chosen by Charles Acre and John Neff, as well as the potential for their upside. Before you jump into the pick, you need to understand the market context that makes these stocks more attractive.
Market index performance over the recent weeks suggests that investors’ confidence in stocks has been updated. According to a report from the Wall Street Journal, this performance reflects optimism despite the release of economic data and corporate revenue reports showing unfavorable growth. Such market movements underscore the importance of adopting strategies when selecting stocks. The most frequently used and preferred strategies include guiding yourself by experienced investors like Akre.
The forefront of this revival is that many growth stocks, including small caps, surpassed the valued stocks in 2023. It does not undermine value stocks, but projects the current preferences of the market for companies with significant growth prospects. Akre Capital’s choice is in a great position to capitalize on this growth trend.
Investors need to understand that such outperformance is not just a short-term phenomenon. This is because historical data shows that growth stocks are consistently delivered with large revenues over a longer period of time. Since 2009, growth stocks have dominated a portfolio of many investors except that interest rate hiking in 2022 had an impact on performance. According to CNBC, this long-term trend adds value to your growth-focused investment strategy.
Furthermore, the need to identify high-quality growth stocks is further emphasized by market profits concentrated in the selection group of megacap stocks. For example, Magnificent Seven has a collective market value of $11.5 trillion. Akre Capital’s investment philosophy underpins this principle of making portfolio decisions by considering high-quality growth stocks.
In this context, the 10 picks brought here from Akre Capital’s portfolio are a list compiled after a keen look into detail and going through the company’s foundations and long-term growth potential. Akre Capital’s approach is significantly aligned with the current market environment where discerning investors tend to overcome market challenges by using growth-oriented companies to strengthen their portfolios.
Before looking at the top picks, it is essential to understand the strategic considerations that will help investors create their list. Our choices don’t just take advantage of current market trends. Our list ensured that it arises from a deep understanding of the factors driving sustainable growth.
We compiled a list of 10 stock picks from Akre Capital by following several criteria. All stocks in the list are part of Akre Capital’s portfolio. Following this key criteria, we searched for stocks with a high percentage of retention in our portfolio. This is to ensure that this article covers top picks from well-known investors. We then looked at the benefits of stocks to represent the future appreciation value of investors’ capital. We used this upward possibility to rank the picks. All data in the article was obtained from the updated financial database and analyst reports as of April 26, 2025.
Why are hedge funds interested in the stocks they accumulate? The reason is simple. Our research shows that mimic the top stock picks of the best hedge funds can outperform the market. Quarterly Newsletter’s strategy was to select 14 small and large caps per quarter, returning 373.4% since May 2014, surpassing the benchmark by 218 percentage points (For more information, please see here).
Costar Group, Inc. Why (CSGP) went down on Wednesday
Elegant residential building set towards the modern skyline.
Portfolio retention rate: 5.76%
Upward potential: 5.05%
Costar Group, Inc, headquartered in Washington, DC. (NASDAQ: CSGP) provides information, analysis and online markets for the commercial real estate industry. The company offers extensive property listings, valuation data and market intelligence through a variety of platforms such as Loopnet, Apartments.com and Costar. Costar Group, Inc. (NASDAQ:CSGP) competes with Zillow in several industries. Establishing an industry presence by maintaining clear advantages in the inclusiveness of commercial data. The company’s expansion into residential real estate analysis has made it a key infrastructure provider for the global real estate information ecosystem.
Costar Group, Inc., took a significant position of 5.76% at Akre Capital’s Portfolio. (NASDAQ:CSGP) shows strong convictions on the long-term outlook. Regarding current possibilities, the company generated revenue of $2.74 billion in 2024, up 11% year-on-year. Additionally, in the fourth quarter of 2024, the company reported 55th consecutive quarter of double-digit revenue growth, meaning strong consistency in performance. According to the company’s guidance for 2025, the annual revenue range is between $2.985 million and $3.015 billion, with a high revenue growth rate of around 10% year-on-year, justifying a positive outlook for investors.
Costar Group, Inc. (NASDAQ:CSGP) is likely to rise at 5.05%, which is modest. Thus, substantial retention of the portfolio suggests confidence in the company’s ability to generate value beyond this current estimate.
Overall CSGP 10th place Charles Acre’s list and John Neff’s stock price have a huge opposite potential. While we acknowledge the potential of CSGP as an investment, our belief lies in the belief that some AI stocks provide higher returns and hold a greater commitment to doing so within a shorter time frame. There have been AI stocks that have risen since the beginning of 2025, and the popular AI stocks have lost around 25%. If you’re looking for AI stocks that are more promising than CSGP, but are trading under 5x revenue, check out our report on this Cheapest AI stocks.
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