Bruce Berkowitz

Bruce Berkowitz

Last Update: 08-15-2016
Related: Fairholme Fund
Fairholme Focused Income Fund

Number of Stocks: 12
Number of New Stocks: 0

Total Value: $1,451 Mil
Q/Q Turnover: 6%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Bruce Berkowitz' s Profile & Performance

Profile

Bruce Berkowitz is the founder and the Managing Member of the Fairholme Fund. Prior to forming Fairholme Capital Management, Mr. Berkowitz was a Managing Director of Smith Barney, Inc. from December of 1993 to October of 1997.

Web Page:http://www.fairholmefunds.com/

Investing Philosophy

Bruce Berkowitz concentrates his investments in a relatively small number of companies. He thinks that the more diversified the portfolio, the more likely the performance will be average. He likes companies with great managers, and deeply undervalued stocks. Benjamin Graham's "The Intelligent Investor" serves as the inspiration for Berkowitz?investment strategy. He focuses investments on companies that have exceptional management, that generate free cash, and that are cheaply priced. Berkowitz will also invest in mediocre companies that are trading at a significant discount to intrinsic value where there exists a catalyst ?an event that makes it likely the gap between market price and intrinsic value will narrow in a reasonable amount of time.

Historical Allocation of Stock, Bonds, Cash

Total Holding History

Performance of Fairholme Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
2015-11.481.19-12.7
2014-2.7213.69-16.4
201335.5432.393.2
3-Year Cumulative16.7 (5.3%/year)52.3 (15.1%/year)-35.6 (-9.8%/year)
201235.811619.8
2011-32.422.11-34.5
5-Year Cumulative7.1 (1.4%/year)80.4 (12.5%/year)-73.3 (-11.1%/year)
201025.4715.0610.4
200939.0126.4612.5
2008-29.7-377.3
200712.355.496.9
200616.7115.790.9
10-Year Cumulative72.2 (5.6%/year)102 (7.3%/year)-29.8 (-1.7%/year)
200513.744.918.8
200424.9310.8814.1
200323.9628.68-4.7
2002-1.58-22.120.5
20016.18-11.8918.1
15-Year Cumulative217 (8%/year)107.5 (5%/year)109.5 (3%/year)
200046.54-9.155.6

Top Ranked Articles

Bruce Berkowitz Gets a Win in Judicial Panel on Fannie Mae and Freddie Mac Panel ruled in favor of plaintiffs
Bruce Berkowitz (Trades, Portfolio), founder of Fairholme Fund (Trades, Portfolio)s, has been pursuing compensation for shareholders of Fannie Mae and Freddie Mac, the failed mortgage lenders at the heart of 2008's financial crisis. He sent this letter Monday to inform shareholders that a judicial panel ruled courts would hear cases in plaintiffs' respective districts rather than consolidate them: Read more...
Most-Bought Financial Citigroup Gets Even Cheaper After Strong Q4 Results The financial company the most value gurus purchased in Q4 has continued to decline this year
The financial stock bought by the most gurus, Citigroup Inc. (NYSE:C), announced mostly earnings results Friday, yet the stock became even cheaper. Read more...
Bruce Berkowitz Comments on Fannie Mae Guru stock highlight
Daniel Schmerin: Let’s turn to Fannie Mae (FNMA) and Freddie Mac. Shareholders expressed a lot of support for our ongoing efforts. I know that you recently corresponded with a soldier bravely serving overseas in the 5th Marine Expeditionary Brigade. Read more...
5 Large-Cap Stocks Held by the Most Gurus During Second Quarter Financial stocks AIG and Goldman Sachs are among the most popular
Large cap stocks are generally defined as those with a market capitalization of at least $10 billion. Using the All-In-One Screener, the following stocks are the most popular large-cap companies held by the gurus as of the second quarter. Read more...
Bruce Berkowitz's Most Interesting New Position Investor is starting to bottom fish in the energy sector
Bruce Berkowitz is as hardcore of a value investor as it gets. He started buying financials in early 2009 and ramped that up in 2010. He has has held Sears (SHLD) for years now, which should tell you something. Berkowitz has a good track record and was Morningstar’s mutual fund manager of the year in 2009. Read more...
» More Bruce Berkowitz Articles

Commentaries and Stories

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Berkowitz: You Know It Will Badly Fail at Some Point Berkowitz joins fellow Gurus Ackman and Stahl in their wariness about the growth of assets managed through passive vehicles Bruce Berkowitz - Berkowitz: You Know It Will Badly Fail At Some Point
If the next crash is ETF-based you can’t say you haven’t been warned. After Murray Stahl (Trades, Portfolio), Bill Ackman (Trades, Portfolio), Berkowitz is now also warning these vehicles for all their worth come with drawbacks. More...

BERKOWITZ, CRASH, ETF


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Sears Holdings Reports Steep Loss, Takes Loan From Lampert in Q2 Lampert, Berkowitz focus on turning a profit at 'transforming' company Bruce Berkowitz,Edward Lampert - Sears Holdings Reports Steep Loss, Takes Loan From Lampert In Q2
Sears Holdings reported a second-quarter earnings loss Thursday as it continues to pursue its strategy of “transformation” under leadership of well-known hedge fund manager Eddie Lampert. More...

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Edward Lampert Adds 2 Companies to Portfolio in 2nd Quarter Guru invests in Seagate Technology and Fossil Group Bruce Berkowitz,Edward Lampert - Edward Lampert Adds 2 Companies To Portfolio In 2nd Quarter
Edward Lampert (Trades, Portfolio), founder of RBS Partners LP and chairman of Sears Holdings Corp. (NASDAQ:SHLD), invested in two stocks – Seagate Technology Inc. (NASDAQ:STX) and Fossil Group Inc. (NASDAQ:FOSL) – in the second quarter that are new to his portfolio. More...

LAMPERT, BUYS, SELLS, QUARTER


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Louis Moore Bacon Invests in Top Banking Companies Guru reports portfolio as of 2nd quarter Louis Moore Bacon,Bruce Berkowitz,Seth Klarman,Dod - Louis Moore Bacon Invests In Top Banking Companies
Louis Moore Bacon (Trades, Portfolio), manager of a top New York-based hedge fund, invests in markets using a “global macro strategy.” More...

LOUIS MOORE BACON, BRUCE BERKOWITZ, DODGE & COX


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Bruce Berkowitz Increases 3 Positions in 2nd Quarter Guru reports quarterly portfolio Bruce Berkowitz,Fairholme Fund - Bruce Berkowitz Increases 3 Positions In 2nd Quarter
Established Dec. 29, 1999, the Fairholme Fund (Trades, Portfolio) seeks long-term capital growth through various equity securities, including common company stock and real-estate investment trust interests. More...

BRUCE BERKOWITZ


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Bruce Berkowitz Comments on AIG Guru stock highlight
Except for last year’s large tax bill, we have little to complain about. Our views on AIG (NYSE:AIG) are well documented. Remaining warrants are attractive given (i) a 2021 expiry, repricing terms, and related stock price, and (ii) increases in underwriting margins, operational efficiencies, and share repurchases.Finding new investments is always difficult. It’s certain to be so, but as opportunities emerge in new sectors and securities, our Funds have the necessary liquidity. The appendix to this letter shows performance and issuer data for each Fund. I look forward to providing additional information during our next conference call in October. More...

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Bruce Berkowitz Comments on Bank of America Guru stock highlight
Improving operating efficiencies more than counter declining net interest margins. Bank of America (NYSE:BAC)’s return on tangible assets has hit our 10% goal. Yet, common share prices remain below tangible assets (on a per share basis). Recent regulatory approval for a 50% increase in dividends and another $5 billion of stock buybacks will improve capital allocation. More...

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Bruce Berkowitz Comments on Atwood Guru stock highlight
The Funds own senior bonds of Atwood (NYSE:ATW) due 2020 with a 17% yield to maturity. Year-to-date, Atwood has retired over 30% these bonds due 2020 via open market purchases and a $150 million cash tender offer announced in late June. These events indicate that management believes it has the financial wherewithal to meet all obligations and take advantage of market mispricing. An existing $220 million cash balance, available credit line, and current contractual backlog provide ample liquidity. Atwood’s fleet of 11 high-spec rigs has a superb operating record and management continues to blend and extend transaction dates with both customers and suppliers. More...

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Bruce Berkowitz Comments on Chesapeake Energy Guru stock highlight
Short-duration bonds of Chesapeake Energy (NYSE:CHK), such as the 7.250% bonds maturing in 2018, were purchased at substantial discounts to par to yield double digit returns. Chesapeake is one of America’s largest producers of natural gas, oil, and natural gas liquids. The company’s assets span numerous U.S. shale basins. New management has navigated the cyclical downturn in oil and gas prices by cutting costs, raising liquidity, and reducing outstanding debt to the lowest level in the last nine years. Though we normally shy away from commodity price forecasting, data shows that natural gas markets have tightened due to waning production growth, expanding exports (to Mexico or via liquefied natural gas), and record domestic demand for electricity generation. Price forges its own anchor. While the company maintains an active hedging program to mitigate future commodity price fluctuations, small improvements in commodity prices can have a significantly positive impact on Chesapeake’s operating results. The company’s $4 billion revolving credit facility was recently reaffirmed and remains almost entirely untapped, which should provide flexibility for More...

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Bruce Berkowitz Comments on Imperial Metals Corp Guru stock highlight
“Copper is used in everything from automobiles to air conditioners, but it has one property that makes it especially attractive for medical use: it kills bacteria” – a new demand.10 Imperial Metals (TSX:III) is on pace to double annual copper output and rival the lowest-cost producers with its Red Chris mine. Further improvements in production and recovery rates at both Red Chris and Mount Polley will generate significant cash profits. Higher prices will speed repayment of debts and plans for new developments within. More...

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Bruce Berkowitz Comments on St. Joe Guru stock highlight
St. Joe (NYSE:JOE) is accelerating development plans to meet growing demand for commercial and residential properties in Northwest Florida. The company’s joint venture commercial development project at Pier Park North is now 93% leased, with four new tenants recently added to the rent roll. VentureCrossings, an industrial and technology park adjacent to the Northwest Florida Beaches International Airport, is generating interest. The WaterSound Origins residential project will surpass 270 homes in the next year, with more residential and commercial development expected. The company is evaluating opportunities to (i) dispose of additional non-core assets, (ii) build a portfolio of income-producing commercial properties, and (iii) further reduce operating expenses – all positive trends. We remain optimistic about St. Joe’s current trajectory and owned land – a good hedge against rising inflation. More...

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Bruce Berkowitz Comments on Seritage Guru stock highlight
Having recently celebrated its first anniversary as an independent and publicly traded real estate investment trust (REIT), Seritage (NYSE:SRG) is making steady progress in repurposing, re-tenanting, and redeveloping many of the 266 properties that it purchased from Sears last year. In the company’s inaugural Annual Report, CEO Ben Schall explains why the company’s genesis within Sears will prove lucrative:The origins of our real estate portfolio trace back 30 to 40 years ago, during a period of expansive retail real estate development and the proliferation of super regional malls. Sears played a central role as a leading anchor, property owner and, at times, co-developer of many of these new developments. Sears’ prominence during this era is reflected in two important outcomes evident in today’s real estate landscape. First, Sears received fee ownership over large parcels of land to construct its department stores, auto centers and related uses. Second, and equally important, Sears was able to select prime locations at the front entrance and at the primary intersections at many of these new developments. More...

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Bruce Berkowitz Comments on Sears Holdings Guru stock highlight
The Funds’ investments in Sears span the capital structure – from common equity to short-duration bonds yielding over 10% – and yours truly joined the Board of Directors in February. The company is “focused on restoring profitability” and improving operating performance by transforming “from a traditional, store-only based retailer into a more asset-light, member-centric integrated retailer.”6 Sears (NASDAQ:SHLD) also announced that it intends to unlock more value for shareholders by exploring strategic alternatives for its Home Services as well as Kenmore, Craftsman, and DieHard brands. Similar public businesses have enterprise values that range from one-half to two times revenues. Market observers are just discovering parts of Sears that they hardly knew existed. Case in point: a press article recently “uncovered” developments at Innovel Solutions (previously known as Sears Logistics Services), a profitable 1,100-truck delivery service with a distribution network consisting of 11 regional warehouses and 24- to 48-hour delivery capability for the majority of households in the United States. The service “has grown 238 percent since 2014”7 More...

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Bruce Berkowitz Comments on Fannie Mae and Freddie Mac Guru stock highlight
Fannie (OTCPK:FNMA) and Freddie (OTCPK:FMCC) are two of the best businesses ever owned by the Funds. Think of these two mortgage insurers as public utilities, just like your local electric company: every day, Fannie and Freddie provide essential services to millions of families by making home mortgages affordable and accessible. For decades, in good times and bad, they have supported the middle class in pursuing the American Dream – a home to raise children, a nest for a worry-free retirement – at no cost to taxpayers.Last year, Fannie and Freddie earned a combined $17.3 billion in net income. This is not an aberration: Fannie and Freddie have consistently generated revenue in excess of their cash expenses. Given their substantial profi tability, these two companies should be the safest of preferred stock issuers. But, the government’s imposition of a “Net Worth Sweep” that usurps all of the companies’ capital has turned common sense on its head. In February, Federal Housing Finance Agency (“FHFA”) More...

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Bruce Berkowitz Comments on Individual Holdings in Mid-Year Letter Fairholme manager calls Fannie and Freddie 'best businesses ever owned' in funds Bruce Berkowitz - Bruce Berkowitz Comments On Individual Holdings In Mid-Year Letter
July 28, 2016 More...

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Bruce Berkowitz Gets a Win in Judicial Panel on Fannie Mae and Freddie Mac Panel ruled in favor of plaintiffs Bruce Berkowitz - Bruce Berkowitz Gets A Win In Judicial Panel On Fannie Mae And Freddie Mac
Bruce Berkowitz (Trades, Portfolio), founder of Fairholme Fund (Trades, Portfolio)s, has been pursuing compensation for shareholders of Fannie Mae and Freddie Mac, the failed mortgage lenders at the heart of 2008's financial crisis. He sent this letter Monday to inform shareholders that a judicial panel ruled courts would hear cases in plaintiffs' respective districts rather than consolidate them: More...

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Director Boosts Stake in Sears as Retail Companies Become Hot Buys Retail stocks demonstrate high performance and profitability Bruce Berkowitz,Paul Tudor Jones - Director Boosts Stake In Sears As Retail Companies Become Hot Buys
On June 1, Bruce Berkowitz (Trades, Portfolio) of Fairholme Capital Management increased his Sears Holding Group (NASDAQ:SHLD) holding by 2.78%, buying the additional shares at an average price of $12.50 per share. The fund also made a $10.13 billion insider transaction, buying 778,000 shares of Sears’ stock at an average price of $13.02 per share. More...

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Bruce Berkowitz Comments on DNOW Guru stock highlight
Supply naturally depletes. Oil and natural gas reserves naturally deplete. Meanwhile, demand for oil and gas will not dissipate; in fact, it increases, especially with the conversion we are seeing to natural gas for utilities. Today, we have a situation where the selling price of these commodities is lower than the price to produce them. This can’t last – something has to give. Demand will go up, and price must rise to entice producers to supply more. When? We don’t know. More...

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Bruce Berkowitz Buys Bank of America, Sells Leucadia National The investor's largest trades in the 1st quarter Bruce Berkowitz,Dodge & Cox,Barrow Hanley Mewhinne - Bruce Berkowitz Buys Bank Of America, Sells Leucadia National
Bruce Berkowitz (Trades, Portfolio) is the founder and the managing member of the Fairholme Fund (Trades, Portfolio). During the first quarter he traded the following stocks: More...

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Bruce Berkowitz Comments on Sears Guru stock highlight
Daniel Schmerin: Let’s move on, we received the most questions about Sears (NASDAQ:SHLD). More...

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