O'Reilly Automotive, one of the fund's newer positions, is an auto parts retailer and distributor that sells to commercial garages and do-it-yourselfers. Like its two main competitors, AutoZone and Advanced Auto Parts, it stands to benefit from constrained consumers who must keep their cars longer and need parts to maintain them. But O'Reilly has an advantage over those companies because it dominates in independent garages. The company also carries very little debt, and it is enhancing shareholder value by buying back its shares.
Off-price retailer TJX Companies, another newer purchase, fits into the fund's focus on companies that cater to cash-strapped consumers. "The company's cash balance is significantly higher than its debt, and it's growing square footage and same-store sales," Akre says. "But its secret sauce is a terrific ability to execute the logistics of managing special purchases at the right price."