Bruce Berkowitz

Bruce Berkowitz

Last Update: 2014-02-14
Related: Fairholme Fund
Fairholme Focused Income Fund

Number of Stocks: 45
Number of New Stocks: 26

Total Value: $9,714 Mil
Q/Q Turnover: 14%

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 (%)
201335.5431.554.0
201235.8115.420.4
2011-32.422.08-34.5
3-Year Cumulative24.4 (7.5%/year)55 (15.7%/year)-30.6 (-8.2%/year)
201025.4715.0610.4
200939.0126.4612.5
5-Year Cumulative117 (16.8%/year)125.5 (17.7%/year)-8.5 (-0.9%/year)
2008-29.7-377.3
200712.355.616.7
200616.7115.790.9
200513.744.918.8
200424.931212.9
10-Year Cumulative184.2 (11%/year)104.1 (7.4%/year)80.1 (3.6%/year)
200323.9628.7-4.7
2002-1.58-22.120.5
20016.18-11.918.1
200046.54-9.155.6

Top Ranked Articles

Bank of America (BAC) with a compelling entry point for long term investors
Though It Hurts, Bruce Berkowitz Is No Bill Miller
There are a lot of analogies in the media these days to compare Fairholme Fund’s Bruce Berkowitz with Legg Mason Value Trust’s Bill Miller, as Berkowitz’s Fairholme Fund suffered its worst year of performance after years of tremendous outperformance. Many articles are predicting that Bruce Berkowitz is the next Bill Miller. Investors certainly treated Bruce Berkowitz the same way they treated Bill Miller. At the peak of Miller’s fame, after he had beaten the market average S&P 500 by 15 consecutive years, the size of his fund reached $20 billion in 2006. He suffered a 6.66% loss in 2007, while the market advanced in 2007, and a 55% loss in the market crash of 2008. Investors fled out of his fund. As of July 31, 2011, the fund has only $3.3 billion left, about 16% of the assets under management at its peak. Read more...
Chesapeake Energy – Ready to Rise
One of the gurus I pay attention to is Bruce Berkowitz who is the manager of Fairholme Funds and famed for his analysis and sticking to his convictions when he feels the facts are on his side, even if his stocks are down substantially from his purchase price. Given the recent disclosure by GuruFocus that Bruce Berkowitz has re-initiated a position in Chesapeake Energy (CHK) in first quarter 2013 and the oil and gas sector being out of favor, I decided to take a look at Chesapeake Energy (CHK). Read more...
Concentrates his bets, Bruce Berkowitz focuses on Berkshire Hathaway and Canadian National Resources
Bruce Berkowitz, manager of Fairholme Fund, started his fund 8 years ago. Over the past 8 years his fund has appreciated by 17.40% per annum compared to a gain of 1.71% per annum for the S&P 500 Index. With this article we like to review how Bruce Berkowitz achieved this outstanding result. Read more...
Answers from Bruce Berkowitz of Fairholme Fund; Comment on Banks, Insurers and St. Joe
In January we announced that our users can ask questions to Bruce Berkowitz of Fairholme Fund and we received tremendous responses. Now here are the answers back from Mr. Berkowitz in a joint interview with Advisor Perspective. Read more...
» More Bruce Berkowitz Articles

Commentaries and Stories

  • Currently 4.00/5

Rating: 4.0/5 (1 vote)

Bruce Berkowitz Leads Returns for First Quarter with Bet on Fannie Mae, Freddie Mac Bruce Berkowitz - Bruce Berkowitz Leads Returns For First Quarter With Bet On Fannie Mae, Freddie Mac
Bruce Berkowitz (Trades, Portfolio) still has almost 42% of his Fairholme Fund (Trades, Portfolio) (FAIRX) in American International Group Inc. (AIG), a holdover from his massive bet on U.S. financials post-economic crisis. As of year-end, he also holds massive stakes in his new venture, national home mortgage entities Fannie Mae (FNMA) (20 million common shares and 66 million preferred shares) and Freddie Mac (FMCC) (52 million preferred shares). The average gain of the new positions is the highest of all investors tracked by GuruFocus over the past six months, beating out those of Robert Karr (Trades, More...

  • Currently 4.75/5

Rating: 4.8/5 (4 votes)

Bruce Berkowitz - There Is No Debate, Fannie and Freddie Are Private Bruce Berkowitz - Bruce Berkowitz - There Is No Debate, Fannie And Freddie Are Private
Bruce Berkowitz (Trades, Portfolio) has a big position in Freddie and Fannie preferred shares. More...

  • Currently 3.83/5

Rating: 3.8/5 (6 votes)

Bruce Berkowitz’s Only New Stock - A Miner Bruce Berkowitz - Bruce Berkowitz’s Only New Stock - A Miner
Yet again this quarter, Bruce Berkowitz (Trades, Portfolio) acquired an array of types of embattled Fannie Mae (FNMA) and Freddie Mac (FMCC) stock, as congress works out the fates of the two mortgage entities, and decides what investors will receive. Being so deep into this bet, Berkowitz has shown little interest in U.S. corporate stocks, where he formerly concentrated. He did, however, buy shares of one new company in the fourth quarter: Imperial Metals Corp. (TSX:III). More...

  • Currently 3.67/5

Rating: 3.7/5 (3 votes)

Bruce Berkowitz Comments on Fannie Mae and Freddie Mac
Two of our best performers during the period were Fannie Mae (FNMA) and Freddie Mac. Both are absolutely essential for uniquely- a merican, affordable mortgages. If you disagree, try getting a 30-year, sub-5% mortgage outside of the United States. In 2008, both companies agreed to U.S. conservatorship and extraordinarily harsh terms and conditions during a time of global crisis. The plan worked. Fannie and Freddie saved the day, repaid nearly every penny of cash received from the u . s . Treasury, and can look forward to resuming a prosperous future based just on the aging of assets held. However, many believe Fannie and Freddie will be victims of a government-sponsored expropriation that brings our country closer to a future conceived by George Orwell in his novel, 1984 . We disagree More...

  • Currently 4.60/5

Rating: 4.6/5 (10 votes)

Bruce Berkowitz Comments on Sears Holdings
Headlines shout of Sears (SHLD)' disastrous 2013 loss of $12 per share. A longer history shows that since the merger of Sears with Kmart, about 9 years ago, s ears has distributed over $66 of cash per share via buybacks and spin-offs and has paid down $27 per share of a pension liability that is no different, in our view, from debt. Fairholme research estimates that the fair value of s ears' net assets exceeds $150 per share. If our research is accurate, we expect s ears' market price of $38 to increase to this value over time. More...

  • Currently 5.00/5

Rating: 5.0/5 (4 votes)

Bruce Berkowitz's Fairholme Allocation Fund Annual Letter
Mutual fund investing involves risks including loss of principal. The chart below covers the period from inception of The Fairholme Allocation Fund (December 31, 2010) to December 31, 2013. Past performance information quoted below does not guarantee future results. The investment return and principal value of an investment in The Fairholme Allocation Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance i nformation quoted below. Performance figures assume reinvestment of dividends and capital gains, but do not reflect a 2.00% redemption fee on shares redeemed within 60 days of purchase. Any questions you may have, including most recent month-end performance, can be answered b y calling Shareholder Services at 1.866.202.2263. The S&P 500 Index is a broad-based measurement of changes in the stock market, is used for comparative purposes only, and is not meant to be indicative of The Fairholme Allocation Fund's performance, asset composition, or volatility. The Fairholme Allocation Fund maintains a focused portfolio of investments in a limited number of issuers More...

  • Currently 5.00/5

Rating: 5.0/5 (4 votes)

Fairholme Fund 2013 Shareholder Letter - Pegs Sears Valuation at $150 Per Share
  • Currently 4.00/5

Rating: 4.0/5 (1 vote)

Fairholme Hedge Fund Builds on 25 Years of Berkowitz Success
Bruce Berkowitz (Trades, Portfolio) may have made his name with his $11 billion mutual fund, but it's his partnership that's making headlines these days. More...

  • Currently 3.31/5

Rating: 3.3/5 (16 votes)

Bruce Berkowitz's Other Stocks Bruce Berkowitz - Bruce Berkowitz's Other Stocks
Believe it or not, though he runs a highly concentrated portfolio, fund manager Bruce Berkowitz (Trades, Portfolio) has other stocks besides his outsized Fannie Mae (OTCBB:FNMA) and Freddie Mac (OTCBB:FMCC) ownership he has claimed for his firm, the Fairholme Fund (Trades, Portfolio), and the leftover financial stocks from his previous financial crisis game plan. More...

  • Currently 2.80/5

Rating: 2.8/5 (10 votes)

Eric Sprott – From Hero to Zero? Bruce Berkowitz - Eric Sprott – From Hero To Zero?
On February 5, 2012, I wrote an article titled Bruce Berkowitz – From Hero to Zero? This is what I said in the first two paragraphs. More...

  • Currently 2.88/5

Rating: 2.9/5 (8 votes)

Former Fairholme Fund Managers' GoodHaven Fund - Top Stocks Bruce Berkowitz - Former Fairholme Fund Managers' GoodHaven Fund - Top Stocks
After spending several years buying the most battered financial companies of the 2008 to 2009 financial crisis, Bruce Berkowitz this year is busy loading his mutual fund, the Fairholme Fund (FAIRX), with shares of the government-rescued Fannie Mae and Freddie Mac. He has also opened his own hedge fund. But before these periods, when he was running a successful and rather risk-averse mutual fund and named hedge fund manager of the decade, he worked with two men, Larry Pitkowsky and Keith Trauner. In 2010, these two investors left to found a separate firm, the GoodHaven Fund (GOODX). More...

  • Currently 5.00/5

Rating: 5.0/5 (6 votes)

Top Returning Investment Gurus of 2013 Bruce Berkowitz,John Paulson,Robert Karr - Top Returning Investment Gurus Of 2013
It was a good year for most fund managers, and a great year for some. With 2013 winding down, it’s clear which gurus had the winningest picks for the year. According to the Score Board of Gurus, the gurus whose stock investments of the past 12 months have gained the most are: John Paulson, Robert Karr, Bruce Berkowitz’s Fairholme Fund, Michael Price and Jean-Marie Eveillard. These investors’ stock picks significantly outperformed both the average hedge fund return through Oct. 31 of 6%, and the year-to-date S&P 500 return of 27.4%. More...

  • Currently 4.14/5

Rating: 4.1/5 (7 votes)

Gov’t Finally Responds to Fairholme Suit Bruce Berkowitz - Gov’t Finally Responds To Fairholme Suit
Here is the gov’t response to Fairholme: More...

  • Currently 4.80/5

Rating: 4.8/5 (10 votes)

Bruce Berkowitz on Fairholme's Bid for Fannie Mae and Freddie Mac Bruce Berkowitz - Bruce Berkowitz On Fairholme's Bid For Fannie Mae And Freddie Mac
Bruce Berkowitz wants to buy Fannie Mae (FNMA) and Freddie Mac. More...

  • Currently 4.75/5

Rating: 4.8/5 (4 votes)

Fairholme Capital Management Submitted a Proposal to Purchase MBS Insurance Business from Fannie and Freedie Bruce Berkowitz - Fairholme Capital Management Submitted A Proposal To Purchase MBS Insurance Business From Fannie And Freedie
  • Currently 4.50/5

Rating: 4.5/5 (4 votes)

IZEA Inc. – An Idea Borrowed from the Portfolio of a Top Small-Cap Investor Bruce Berkowitz,Fairholme Fund - IZEA Inc. – An Idea Borrowed From The Portfolio Of A Top Small-Cap Investor
I’m a Warren Buffett devotee. More...

  • Currently 3.70/5

Rating: 3.7/5 (10 votes)

Berkowitz: 'It Doesn’t Pay to Bet Against America' – Low P/E Stocks Bruce Berkowitz - Berkowitz: 'It Doesn’t Pay To Bet Against America'  – Low P/E Stocks
In his July 2013 letter to shareholders, Bruce Berkowitz demonstrated his signature communication gift, to explain-inspire at the same time. Guru Berkowitz wrote: “Eighty-five percent of net assets are invested in AIG, Bank of America, and others damaged by our country’s residential real estate bubble. We bought when most thought them dead. Clearly, they were not and we helped prove the point. Our initial investments reaffirmed a deeply held – and historically profitable – belief that it doesn’t pay to bet against America.” More...

CONGLOMERATES, INSURANCE – DIVERSIFIED, INSURANCE - LIFE


  • Currently 3.30/5

Rating: 3.3/5 (10 votes)

Is Bank of America Worth More Dead than Alive? Bruce Berkowitz,Mohnish Pabrai - Is Bank Of America Worth More Dead Than Alive?
If there were ever a familiar name left for dead by Wall Street, it would be Bank of America Corporation (BAC). It’s been nearly seven years since Bank of America’s stock price has seen a new high. More...

  • Currently 3.80/5

Rating: 3.8/5 (10 votes)

Why Sears Is Not Too Big to Fall
Negative macroeconomic trends, such as consumer credit contraction, housing market downturn, and increases in commodity costs, have negatively affected the retail industry. Yet the economic downturn, which followed the 2008 financial crisis, has not hit all retailers equally. Whereas Sears Holdings Corporation (SHLD) has struggled to grow, Kohl’s Corp (KSS) is expected to continue on its positive growth trajectory. More...

RETAIL, HIGH, LOW,


  • Currently 3.88/5

Rating: 3.9/5 (8 votes)

Bruce Berkowitz Fannie Mae Drama Continues, with Small Victory Bruce Berkowitz,John Paulson - Bruce Berkowitz Fannie Mae Drama Continues, With Small Victory
Bruce Berkowitz has provided much of the drama in the investing world for the past five years, as he sunk stomach-churning amounts of money into one dubious-looking asset after another. Yet the investor always seems to greet monumental risk with perfect aplomb. Probably because he is so well informed and his theses are so airtight that there does not seem to be any risk involved for him at all, and once he takes a position, he merely watches events unfold according to plan. Most recently, he revealed an investment in another Berkowitz-esque asset – the companies at the epicenter of the 2008 financial crisis, housing mortgage institutions Fannie Mae and Freddie Mac. This project also involves and largely hinges on him suing the U.S. government. So far so good. More...

Add Notes, Comments or Ask Questions

User Comments

Gurufocus
ReplyGurufocus - 4 months ago
"where's the fannie and freddie?"

They are in the portfolio of Fairholme Fund:

http://www.gurufocus.com/holdings.php?GuruName=Fairholme+Fund
A632784
ReplyA632784 - 4 months ago
where's the fannie and freddie??????????????????
Gegogego
ReplyGegogego - 4 months ago
Why are Freddie Mac and Fannie Mae not listed in current holdings or recent buys?

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