Fairholme Fund

Last Update: 2014-02-03
Related: Bruce Berkowitz
Fairholme Focused Income Fund

Number of Stocks: 26
Number of New Stocks: 3

Total Value: $8,159 Mil
Q/Q Turnover: 2%

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

Fairholme Fund Watch

  • What Does It Take to Be a Guru?

    What annual return do you need to achieve to be considered a guru? Over the last 15 years, you were lucky to make 8% to 9% a year in stocks. And since today’s stock prices aren’t any lower than they were 15 years ago – the same is true of the future. If you can make 8% to 9% a year over 15 years, you’re worthy of guru consideration.

    GuruFocus has its own methods for deciding who is and isn’t a guru. I’m not going to talk about that. I’m just going to talk about what is and isn’t a great investment performance.  


  • Bruce Berkowitz Adds to Wells Fargo, Reduces CIT Group and Jefferies Group

    As of the quarter ending Sept. 30, Bruce Berkowitz, founder of Fairholme Capital Management, has reported three updates to his portfolio, which include an increase in his stake of Wells Fargo (WFC) and stake reductions in CIT Group (CIT) and Jefferies Group (JEF).

    Berkowitz’s investment philosophy targets undervalued stocks that have exceptional management, continuously generating free cash and a cheap price, especially compared to the stock’s intrinsic value.  


  • Fairholme Fund Buys Orchard Supply, Sells Berkshire Hathaway Inc., Cit Group Inc.

    Fairholme Fund just reported its second quarter portfolio. The fund did not trade much during the second quarter. It added slightly to Orchard Supply, and sold Berkshire Hathaway and CIT group. The fund had $7 billion under management as of May 31, which is a drop of more than 60% since 15 months ago.

    Bruce Berkowitz is still confident and concentrated most of his bet on positions like AIG, Sears, and Bank of America. The fund gained 24.7% versus 9.5% for S&P 500 in the first 6 months. He wrote:  


  • Stock Market Pitching a Fat One Down the Middle with American Bank Stock Prices?

    My gut tells me that we have a big investment opportunity today in American banks. The problem is that my brain tells me that there is no way I have the expertise to figure out exactly what is on the balance sheet of these entities.

    I’ve never been convinced that people inside banks are fully aware of the real risk that lies in their assets. I mean how many loans get underwritten by branches that are supervised by some guy who will never even meet the executives who run the bank? A bank is only as good as its internal controls on its underwriting standards. And internal controls are only as good as the people using them. And we all know what people are capable of. These are huge institutions that rely on the effectiveness of their systems. That frightens me.  


  • Pitkowsky and Trauner (former Fairholme Investors) - Value Investing in the Tech Boom 2.0

    Larry Pitkowsky and Keith Trauner sat out the first bubble. Now the value investors justify why Google (GOOG) is a top holding and Microsoft (MSFT) is more exciting now than a decade ago.

    FORTUNE -- Some splits in the mutual fund world are acrimonious, some aren't. This one fell somewhere in the middle. Larry Pitkowsky and Keith Trauner were happy working with Bruce Berkowitz at the Fairholme Fund. The fund's record was enviable through 2007, and it was attracting more and more new money by the day. If they continued picking winners and spotting trouble ahead -- Fairholme's annual reports fretted early about toxic bank holdings leading to a market shock -- Pitkowsky and Trauner might also be honored, as Berkowitz later was, as Morningstar's U.S. stock manager of the decade.  


  • Fairholme Fund Q1 Portfolio: Buys BAM, CHPXF.PK, RF, SHLD, BRK.B, AIG; Sells GGP, GE, WCG, STD, TEVA

    After a decade of stellar performance by buying high quality companies with strong cashflows and capable management, Fairholme Fund’s asset under management ballooned. With a much bigger size of fund, Bruce Berkowitz, the guru that manages Fairholme Fund, bet heavily that the giant financial companies will recover after the stresses they have experienced in the financial crisis. He has close to 80% of the fund equity investment in these big financials.

    We don’t know yet that his bet will reward him as much as his previous investments in long term. In short term, these investments have hurt his performance numbers.  


  • Fairholme Fund Buys STD, TEVA, AIG, CIT, BAC, RF, MS, BRK.B, GE

    This is the portfolio update for Fairholme Fund. The fund is run by the best mutual fund manager Bruce Berkowitz. It gained 25.5% in the last year, and has rewarded almost 200% in the last 10 years, as the market gained just 16%.

    If you don’t know, we track Bruce Berkowtiz in two portfolios, one is through his firm Fireholme Capital Management, the other is Fairholme Fund, which is reported here. The two portfolios have different fiscal periods. Tracking both of them helps us to follow Bruce Berkowitz’s trades more closely.  


  • Fairholme Fund Q3: Buys General Electric, Adds to AIG, BAC, BRK.A, MBI, MS, Sells Comcast

    This is the Q3 portfolio update of Fairholme Fund, the mutual fund that is managed by Bruce Berkowitz. Fairholme continues to add financial holdings like AIG, Bank of America. AIG is now the largest holding of the fund.

    Up to June 30, Fairholme Fund had achieved a cumulative gain of 255% since incepted on Dec. 29, 1999. The S&P500 lost 14.81% in the same period.  


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