Bruce Berkowitz

Bruce Berkowitz

Last Update: 03-19-2015
Related: Fairholme Fund
Fairholme Focused Income Fund

Number of Stocks: 18
Number of New Stocks: 3

Total Value: $7,296 Mil
Q/Q Turnover: 4%

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

Bruce Berkowitz Watch

  • Bruce Berkowitz: It's a Sears Thing

    Fairholme Capital Management published a teaser of its upcoming presentation on Sears Holdings Corporation (SHLD) earlier today.


      



  • Edward Lampert's Recent Buys

    Lampert is the founder of RBS Partners, L.P., a private investment company, and the chairman of Sears Holdings Corporation (SHLD). Since starting RBS Partners, L.P. in 1988 at the age of 25, he has racked up returns averaging 29% a year. He is #68 on the list of Forbes 400 Richest Americans.


    Web Page:http://www.searsholdings.com/invest/

      


  • Bruce Berkowitz Reduced Stake In One Of The Largest Broadline Retailers In The U.S.

    Bruce Berkowitz (Trades, Portfolio) is the founder and the managing member of the Fairholme Fund (Trades, Portfolio). The investor reported decreasing his stake in Sears Holdings Corp (SHLD) on March 16, according to GuruFocus Real Time Picks.


    Berkowitz is the largest shareholder of Sears Holdings, which upped its stake by 5% on the quarter to 26.54 million shares held as of the end of 2014. But now, with the transaction, Berkowitz’s position decreased by 0.16% to 26,498,973 shares. The fund initiated a position more than five years ago, and during 2014 Berkowitz added the stake to reach 26,545,273 million shares at the end of the fourth quarter of 2014, worth $875.46 million.

      


  • Bruce Berkowitz Reports 3 New Holdings in Fourth Quarter

    Bruce Berkowitz (Trades, Portfolio) is the founder of Fairholme Fund (Trades, Portfolio)s (FAIRX), a mutual fund company with $6.56 billion in assets under management at Jan. 7.  


  • Bruce Berkowitz's Fairholme Funds Conference Call Q4 2014

    Please see the last page of this transcript for important disclaimers and for a list of the Fairholme Fund (Trades, Portfolio)’s top holdings. 1 FAIRHOLME CAPITAL MANAGEMENT, L.L.C. Fairholme Capital Management Public Conference Call.

    Bruce Berkowitz (Trades, Portfolio) Moderator: Fred Fraenkel February 3, 2015   


  • Manual of Ideas' Interview With Allan Mecham

    Allan Mecham of Arlington Value did a interview with the Manuel Of Ideas last year. His fund has racked up a impressive 10-year record of return including a positve return in 2008. He has outperformed the S&P 500 by a dramatic amount and has multipled investors' money by 11 times over since its founding.


    Allan Mecham Interview With Manual Of Ideas

      


  • Bruce Berkowitz Comments on Leucadia National Corp

    Leucadia (LUK) (3.6%) remains the Fund’s longest held position. Our estimate of intrinsic value remains above today’s market price. The company’s historical track record of compounding book value significantly faster than most S&P 500 constituents is partly the result of its willingness to initiate opportunistic investments during market panics, as evidenced by its recent rescue financing of Forex Capital Markets (FXCM) following the surprise Swiss franc surge.

    Form Bruce Berkowitz (Trades, Portfolio)'s Fairholme Fund 2014 Annual Report and Investor Letter.  


  • Bruce Berkowitz Comments on St Joe Corp

    The St. Joe Company (JOE) (6.5%) continues to make steady progress. Since our involvement in late 2010, the company has: (i) streamlined real estate and forestry operations by 50%; (ii) reduced corporate expenses by 35%; (iii) increased liquidity by 260%; (iv) cut debt as a percentage of assets to 4.6%; and (v) focused on entitling core assets surrounding one of America’s newest airports and the Gulf of Mexico. St. Joe’s sale of 380,000 acres of non-strategic timberland and rural land for $562 million last year was an important milestone in positioning the company for long-term success. The company’s search for a new CEO is well underway. And Port St. Joe was recently issued a permit by the Florida Department of Environmental Protection to allow for the dredging of the port’s navigational channel, which will help reinvigorate this deep-water seaport for bulk and cargo shipments.

    Form Bruce Berkowitz (Trades, Portfolio)'s Fairholme Fund 2014 Annual Report and Investor Letter.  


  • Bruce Berkowitz Comments on Sears Holdings Corp

    Market participants have often failed to ascribe appropriate intrinsic value to conglomerates, and Sears Holdings Corporation (SHLD) (“SHC”, 7.1%) is no exception. For years, SHC has remained a misunderstood sum-of-parts story. Few have the inclination to examine all of the company’s pieces, which equate to a net asset value that we estimate to be multiples of current market prices.


    SHC’s substantial portfolio of real estate is its most valuable component. The company’s 977 Kmart and 714 Sears properties total 195 million square feet of commercial retail space – more than Simon Property Group, the largest mall REIT with an enterprise value of $100 billion. The possibilities for SHC’s owned and leased properties are endless. Redevelopment is one feasible option that the company is actively pursuing, including: the transformation of its 162,000 square foot store at Janss Marketplace (Thousand Oaks, CA) into a mini-mall; the reorganization of a 14-acre site in St. Paul, Minnesota, with 111,000 square feet in adjacent structures including 130 units of housing; and the redevelopment of a 12.3-acre property at top-performing Aventura Mall in Florida into 251,250 square feet of high- end open-air retail and restaurant space, 43,802 square feet of office space, 128,737 square feet for a luxury hotel with 120 rooms, and 476,297 square feet of parking. At this proposed “Esplanade at Aventura,” Sears would retain a 20,000 square foot presence, effectively reducing its footprint by 90%. Subleasing to single and multiple tenants is another option: millions of square feet have already been subleased to tenants such as Ansar Gallery International, Dick’s Sporting Goods, Kroger, Nordstrom Rack, Primark, and Whole Foods. Finally, some stores will remain as-is: for example, “cash cow” locations throughout the Northeast corridor, Puerto Rico, and the U.S. Virgin Islands do not require any reconfiguration.

      


  • Bruce Berkowitz Comments on Fannie Mae and Freddie Mac

    When we initiated the Fund’s investments in Fannie Mae (FNMA) (4.5%) and Freddie Mac (FMCC) (3.5%), conventional wisdom was that the companies would be liquidated. We disagreed. Our investment was predicated on a simple thesis: there are no substitutes. Fannie and Freddie provide services that are absolutely essential to the American way of life. They help make the popular 30-year fixed-rate mortgage available and affordable. They provide liquidity and stability to the nation’s housing finance system – during good and, especially, in bad times. No one does it better.


    Time is proving our thesis true. Fannie and Freddie have already benefited from post-crisis reform and are returning to simpler, safer business models. Under a range of scenarios, the companies are collectively expected to earn at least $21 billion per year. The United States Treasury has already recouped $36 billion more than it disbursed to Fannie and Freddie during the crisis, rendering this our nation’s most successful equity investment ever. In fact, Treasury’s current profit from Fannie and Freddie is almost three times more than it made from all of its other financial rescue programs combined. These figures do not even account for Treasury’s warrants to acquire 79.9% of each company’s common stock.

      


  • Bruce Berkowitz Comments on Bank of America

    Bank of America (BAC) (22.3%) has executed its business plan admirably to date. By refocusing on core customer relationships across multiple platforms (i.e., checking, credit card, mortgage, and small business), the company is positioning itself for long-term profitability. Effective cross-fertilization of these services will make parallels with best-in-class Wells Fargo more pronounced, and help Bank of America’s still-depressed market price to at least reach book value, reflecting the higher values of existing business. The company recently surpassed its 2011 cost-cutting goal of $8 billion per annum, ahead of schedule. Litigation expenses – a major weight on the company in recent years– have largely dissipated. Heeding lessons learned from the financial crisis, the company prudently disposed of a profitable (at the time) wholesale mortgage business. Intermediaries might seem like ideal clients, but history shows that they are more adversary than friend. Investors should not be surprised to see Bank of America continue to shrink no-longer-core activities. However, the company’s balance sheet is poised for a growing business economy and a rising interest rate environment, with every increase of 100 basis points potentially boosting revenue by $3.7 billion. Sometimes you must take two steps back in order to go ten steps forward.

    Form Bruce Berkowitz (Trades, Portfolio)'s Fairholme Fund 2014 Annual Report and Investor Letter.  


  • Bruce Berkowitz Comments on American International Group Inc

    AIG (AIG) common (41.0%) and warrants (8.1%) remain the Fund’s locomotive. Last year, AIG increased its quarterly dividend by 25% and bought back over $3.4 billion of stock. Efficient capital management allowed the company’s reported book value to grow by about 15% year-over-year to $77.35 per share as of Q3 2014. Going forward, we expect that AIG’s property and casualty business will be the main driver of further increases in value. If management is able to deliver underwriting margins and expense efficiencies consistent with its peer group, then the company’s book value and stock price will meaningfully increase. We shall soon see.

    Form Bruce Berkowitz (Trades, Portfolio)'s Fairholme Fund 2014 Annual Report and Investor Letter.  


  • Fairholme Fund's New Additions to the Portfolio

    Bruce Berkowitz (Trades, Portfolio)'s Fairholme Fund (Trades, Portfolio) recently increased its positions in two stocks while also adding a new buy to its portfolio of 27, with a value of $6.41 billion and a quarter-over-quarter turnover rate of 2%.


    One of the stocks in particular has been described as "messy," partially due to the government's heavy hand in controlling it, but like most stocks this value investor chooses, it is a business that the American people need and it is a business that, if it were to disappear tomorrow, it would be impossible to replace.

      


  • Bruce Berkowitz Increases His Stakes In Fannie And Freddie

    Bruce Berkowitz (Trades, Portfolio) of Fairholme Capital has increased his stakes in Fannie Mae (FNMA) and Freddie Mac (FMCC). With Fannie and Freddie stock prices falling, they now make up a smaller position of value in Fairholmes portfolio compared to mid-2014. Bruce Berkowitz (Trades, Portfolio) is heavly invested in the GSE's and has a law suit against the government over the all of Fannie and Freddie earnings being taken by the government.


    In Fairholmes recent annual report the firm say its owns 15.5 million common shares of Fannie Mae and 14.6 million common shares of Freddie Mac valued at the end of November at $77 million. The firm went from owning 13.7 million shares of Fannie Mae and owning 11.5 million shares of Freddie Mac valued at the end of May at $111 million. The firm increased its stake in the Fannie and Freddie preferred shares. As Fairholmes increased its stake in the GSE's preferred shares the value of its stakes have fallen from $1.2 billion to $516 million as well. Fannie and Freddie positions set now at 8.7% of Fairholmes portfolio down form 15% in May of 2014. Bruce Berkwoitz is making a very contrarin bet on the GSEs and when shares fall he adds to his positions in common and preferred shares.

      


  • Bruce Berkowitz Increases Position in SHLD

    Fairholme Capital Management's Bruce Berkowitz (Trades, Portfolio) recently added more shares of Sears Holdings Corp (SHLD) to his portfolio of 24 stocks, valued at $7.26 billion.


    When choosing stocks for his portfolio, Berkowitz asks himself one question: "How can they die?" This value investor gravitates toward companies that he believes to be irreplaceable if they were to liquidate tomorrow, as well as undervalued stocks.

      


  • Fairholme Fund Invests in Financial Services Stocks

    More than three-fourths of the holdings in Bruce Berkowitz (Trades, Portfolio)’s Fairholme Fund (Trades, Portfolio) are in financial services, and the firm did little to alter that reputation in the fourth quarter of 2014.


    The Fairholme Fund (Trades, Portfolio) sold more than 13 million shares of American International Group Inc (AIG) in the fourth quarter. Fairholme sold 13,573,700 shares of AIG, a New York-based insurance company, for an average price of $53.6 per share. That transaction had a 9.43% impact on the firm’s portfolio.

      


  • Bruce Berkowitz / Fairholme - 2014 Annual Report and Investor Letter



  • What Could Be Expected From Apple’s Q1 Earnings?

    The tech giant, Apple (AAPL), is expected to release its first quarter earnings of fiscal year 2015 that ended December 30 on January 27 after the market close and analysts are hoping that the growth momentum would continue for the company as its products have created hype in the technology driven marketplace. The Street analysts are expecting the sales to be over and above the management guidance meted by the company in the last earnings report and in fact the earnings estimates have been revised upwards nine times in the past 30 days reflecting the huge demand for Apple's product line in the market. Let’s quickly take a plunge and find out what could be expected from this first quarter earnings report.


      


  • A Look at Which Oil Company is the Safest Buy Based on Dividend Data

    Oil has been a hot topic in the news ever since prices began to decline, which has lead investors to paying closer attention to energy stocks. As outlined in a previous article on the energy sector, the recent spike in insider buys in this sector did not go unnoticed. Although looking at trends in insider trades is one way to determine which stocks are potentially good buys, another way is by looking at the dividend data, a feature we offer to premium members. The tab can be found on each stock's page.


    Here's a look at the top three oil companies in the industry – BP PLC (BP), Exxon Mobil Corporation (XOM) and Chevron Corp (CVX) – and which stock is a safer buy based on dividend data.

      


  • Time to Choose the Investment Guru of the Year

    We’re nearing the end of the year, and that means one thing here at GuruFocus. It’s time again for GuruFocus’ readers to choose the Investment Guru of the Year.


    Since 2005, our readers have been helping us make our annual determination of the Investment Guru of the Year. The selection process involves two steps. In the first step, we ask users to nominate their choices. When the initial choices have been submitted, GuruFocus whittles the list to the top five or six. Those nominees will be put into a poll, and GuruFocus users will be able to vote for their Investment Guru of the Year. The Guru who gets the most votes will be named Investment Guru of the Year.

      


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