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 Watch

  • 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.

    Sears had a net loss of $395 million and $3.70 per diluted share, compared to net earnings of $208 million and $1.84 for the second quarter last year. The losses came as the struggling retailer witnessed comparable store sales decline by 3.3% at Kmart and 7% at Sears Domestic.


  • 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.

    Lampert’s portfolio reflected transactions in five stocks during the quarter.


  • 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.”

    The Moore Capital manager has been considered one of the best traders in the 1900s and has ranked in the top 20 money earners since the 1990s. During the second quarter, Bacon invested in three top U.S. banks: Bank of America Corp. (NYSE:BAC), Citigroup Inc. (NYSE:C) and JPMorgan Chase & Co. (NYSE:JPM).


  • 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.

    Chief Investment Officer Bruce Berkowitz (Trades, Portfolio) added to three positions during the second quarter: Sears Holdings Inc. (NASDAQ:SHLD), Bank of America Corp. (NYSE:BAC) and The St. Joe Co. (NYSE:JOE).


  • Bruce Berkowitz Comments on AIG

    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.


  • Bruce Berkowitz Comments on Bank of America

    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.


  • Bruce Berkowitz Comments on Atwood

    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.


  • Bruce Berkowitz Comments on Chesapeake Energy

    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 Chesapeake to renegotiate gas gathering contracts and shed additional assets to further reduce obligations.

    From Bruce Berkowitz (Trades, Portfolio)'s first-half 2016 letter to shareholders.   

  • Bruce Berkowitz Comments on Imperial Metals Corp

    “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.

    From Bruce Berkowitz (Trades, Portfolio)'s first-half 2016 letter to shareholders.   

  • Bruce Berkowitz Comments on St. Joe

    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.

    From Bruce Berkowitz (Trades, Portfolio)'s first-half 2016 letter to shareholders.   

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