The FBR Family of Funds of Arlington, Va., has arranged to retain Charles Akre, the departing portfolio manager of the $13 million FBR Small Cap Value Fund, as the sub-adviser to the three-year-old fund.

FBR disclosed the impending departure of Akre in an April 7 proxy filing with the SEC. FBR will ask fund shareholders to approve the new sub-advisory arrangement at a meeting June 1. FBR Fund Advisers, a division of Friedman Billings & Ramsey, is the adviser to the $55 million fund group.

Akre, who has run the small-cap fund since its inception in December 1996, is leaving to start his own investment advisory firm, Akre Capital Management. Akre has been managing both a hedge fund and separate accounts in a partnership with FBR. He decided he wanted to have a larger part in the management of the hedge fund and separate accounts, said Bart Sanders, senior vice president at FBR. But FBR wanted to keep Akre's fund running and to maintain his involvement, said Sanders.

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