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

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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.

As you may know, in order to track Bruce Berkowitz more closely, we track three portfolios of his. The first is Fairholme Capital Management under his name. The second is under Fairholme Fund, which is the portfolio we are discussing here. The third is Fairholme Focused Income Fund, which is his dividend generating portfolio.

Fairholme Fund buys Brookfield Asset Management Inc., China Pacific Insurance (group) Co., Ltd., adds to its positions in Regions Financial Corp., Sears Holdings Corp., Berkshire Hathaway, American Int'l Group Inc., The Goldman Sachs Group Inc., Citigroup Inc., Morgan Stanley, and sells General Growth Properties Inc., General Electric, Spirit Aerosystems Holdings Inc., Wellcare Health Plans Inc., Banco Santander S.A., Winthrop Realty Trust, Teva Pharmaceutical Industries Ltd. during the three months ended 02/28/2011, according to the most recent filings of his investment company, Fairholme Fund. As of 02/28/2011, Fairholme Fund owns 22 stocks with a total value of $13.6 billion. These are the details of the buys and sells.

This is the portfolio chart of Fairholme Fund. You can click on the legend of the chart to show/hide buys, sells, or holdings. Each ball on the chart represents a position in the portfolio. You can move your mouse on the balls to see the details of each position and click to see the details of all guru trades with this position.



For the details of Fairholme Fund's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Fairholme+Fund

This is the sector weightings of his portfolio:

Financials 75.3%
Industrials 2.1%


These are the top 5 holdings of Fairholme Fund

  1. AMERICAN INT'L GROUP INC (AIG) - 40,432,939 shares, 11.01% of the total portfolio. Shares added by 7.7%
  2. Sears Holdings Corp. (SHLD) - 14,494,373 shares, 8.87% of the total portfolio. Shares added by 12.71%
  3. BANK OF AMERICA CORP. (BAC) - 77,317,115 shares, 8.12% of the total portfolio.
  4. MORGAN STANLEY (MS) - 34,755,900 shares, 7.58% of the total portfolio. Shares added by 3.15%
  5. The Goldman Sachs Group Inc. (GS) - 6,145,700 shares, 7.4% of the total portfolio. Shares added by 10.16%


Added: Regions Financial Corp. (RF)

Fairholme Fund added to his holdings in Regions Financial Corp. by 19.23%. His purchase prices were between $5.38 and $8.02, with an estimated average price of $6.99. The impact to his portfolio due to this purchase was 1.05%. His holdings were 115,837,504 shares as of 02/28/2011.

Regions Financial Corporation is a regional bank holding company and has banking-related subsidiaries engaged in mortgage banking, credit life insurance, leasing, and securities brokerage activities with offices in various Southeastern states. Regions Financial Corp. has a market cap of $8.92 billion; its shares were traded at around $7.09 with and P/S ratio of 1.08. The dividend yield of Regions Financial Corp. stocks is 0.56%.

Added: Sears Holdings Corp. (SHLD)

Fairholme Fund added to his holdings in Sears Holdings Corp. by 12.71%. His purchase prices were between $65.5 and $93.03, with an estimated average price of $75.22. The impact to his portfolio due to this purchase was 1%. His holdings were 14,494,373 shares as of 02/28/2011.

Sears Holdings Corporation, the parent of Kmart and Sears, Roebuck and Co. Sears Holdings Corp. has a market cap of $8.46 billion; its shares were traded at around $78.07 with a P/E ratio of 46.75 and P/S ratio of 0.2. Sears Holdings Corp. had an annual average earnings growth of 8.3% over the past 10 years.

Added: Berkshire Hathaway (BRK.B)

Fairholme Fund added to his holdings in Berkshire Hathaway by 33.19%. His purchase prices were between $79.4 and $85.3, with an estimated average price of $81.59. The impact to his portfolio due to this purchase was 0.95%. His holdings were 5,963,650 shares as of 02/28/2011.

Berkshire Hathaway Inc. is a holding company owning subsidiaries engaged in a number of diverse business activities. Berkshire Hathaway has a market cap of $198.34 billion; its shares were traded at around $80.21 with a P/E ratio of 15.76 and P/S ratio of 1.46. Berkshire Hathaway had an annual average earnings growth of 10.8% over the past 10 years.

Added: American Int'l Group Inc (AIG)

Fairholme Fund added to his holdings in American Int'l Group Inc by 7.7%. His purchase prices were between $38.54 and $61.18, with an estimated average price of $48.22. The impact to his portfolio due to this purchase was 0.79%. His holdings were 40,432,939 shares as of 02/28/2011.

American International Group, Inc., world leaders in insurance and financial services, is the international insurance organization with operations in more than one hundred thirty countries and jurisdictions. American Int'l Group Inc has a market cap of $55.16 billion; its shares were traded at around $30.7 with and P/S ratio of 0.83.

Added: The Goldman Sachs Group Inc. (GS)

Fairholme Fund added to his holdings in The Goldman Sachs Group Inc. by 10.16%. His purchase prices were between $156.14 and $175, with an estimated average price of $166.77. The impact to his portfolio due to this purchase was 0.68%. His holdings were 6,145,700 shares as of 02/28/2011.

Goldman Sachs is a global investment banking and securities firm, providing a full range of investing, advisory and financing services worldwide to a substantial and diversified client base, which includes corporations, financial institutions, governments, and high net worth individuals. The Goldman Sachs Group Inc. has a market cap of $78.13 billion; its shares were traded at around $150.1 with a P/E ratio of 13.55 and P/S ratio of 2. The dividend yield of The Goldman Sachs Group Inc. stocks is 0.93%. The Goldman Sachs Group Inc. had an annual average earnings growth of 9.8% over the past 10 years.

Added: Citigroup Inc. (C)

Fairholme Fund added to his holdings in Citigroup Inc. by 4.37%. His purchase prices were between $4.2 and $5.13, with an estimated average price of $4.78. The impact to his portfolio due to this purchase was 0.3%. His holdings were 210,198,600 shares as of 02/28/2011.

Citigroup Inc., the global financial services company, has some two hundred million customer accounts and does business in more than hundred countries, providing consumers, corporations, governments, and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Citigroup Inc. has a market cap of $131.33 billion; its shares were traded at around $4.52 with a P/E ratio of 14.58 and P/S ratio of 1.52.

Added: Morgan Stanley (MS)

Fairholme Fund added to his holdings in Morgan Stanley by 3.15%. His purchase prices were between $24.46 and $30.99, with an estimated average price of $28.24. The impact to his portfolio due to this purchase was 0.23%. His holdings were 34,755,900 shares as of 02/28/2011.

Morgan Stanley is a preeminent global financial services firm that maintains market positions in each of its three primary businesses: securities; asset management; and credit services. Morgan Stanley has a market cap of $39.01 billion; its shares were traded at around $25.24 with a P/E ratio of 13.94 and P/S ratio of 1.23. The dividend yield of Morgan Stanley stocks is 0.79%. Morgan Stanley had an annual average earnings growth of 2.1% over the past 10 years.

New Purchase: Brookfield Asset Management Inc (BAM)

Fairholme Fund initiated holdings in Brookfield Asset Management Inc. His purchase prices were between $29.23 and $33.59, with an estimated average price of $32.33. The impact to his portfolio due to this purchase was 6.85%. His holdings were 27,500,000 shares as of 02/28/2011.

Brookfield Asset Management Inc. is an asset manager. Brookfield Asset Management Inc. has a market cap of $20.65 billion; its shares were traded at around $33.09 with a P/E ratio of 42.97 and P/S ratio of 1.52. The dividend yield of Brookfield Asset Management Inc stocks is 1.57%. Brookfield Asset Management Inc. had an annual average earnings growth of 27% over the past 10 years.

New Purchase: China Pacific Insurance (group) Co., Ltd. (CHPXF.PK)

Fairholme Fund initiated holdings in China Pacific Insurance (group) Co., Ltd. His purchase prices were between $0 and $0, with an estimated average price of $0. The impact to his portfolio due to this purchase was 4.4%. His holdings were 148,105,400 shares as of 02/28/2011.

Reduced: Spirit Aerosystems Holdings Inc. (SPR)

Fairholme Fund reduced to his holdings in Spirit Aerosystems Holdings Inc. by 37.05%. His sale prices were between $19.47 and $26.06, with an estimated average price of $22.34. The impact to his portfolio due to this sale was -1.25%. Fairholme Fund still held 11,115,600 shares as of 02/28/2011.

Spirit Aerosystems is the world's largest independent supplier of commercial airplane assemblies and components. Spirit Aerosystems has a market cap of $3.29 billion; its shares were traded at around $23.12 with a P/E ratio of 14.27 and P/S ratio of 0.79.

Reduced: Winthrop Realty Trust (FUR)

Fairholme Fund reduced to his holdings in Winthrop Realty Trust by 32.11%. His sale prices were between $11.53 and $13.15, with an estimated average price of $12.42. The impact to his portfolio due to this sale was -0.08%. Fairholme Fund still held 1,731,748 shares as of 02/28/2011.

Winthrop Realty Trust is a Boston-based real estate investment trust. Winthrop Realty Trust has a market cap of $323.43 million; its shares were traded at around $11.94 with a P/E ratio of 7.96 and P/S ratio of 5.84. The dividend yield of Winthrop Realty Trust stocks is 5.44%. Winthrop Realty Trust had an annual average earnings growth of 19% over the past 10 years.

Sold Out: General Growth Properties Inc. (GGP)

Fairholme Fund sold out his holdings in General Growth Properties Inc. His sale prices were between $14.35 and $16.19, with an estimated average price of $15.28.

General Growth Properties is one of the oldest and most experienced shopping center owners, developers and managers in the United States. General Growth Properties Inc. has a market cap of $15.35 billion; its shares were traded at around $15.92 with a P/E ratio of 12.84 and P/S ratio of 5.44. The dividend yield of General Growth Properties Inc. stocks is 3.02%. General Growth Properties Inc. had an annual average earnings growth of 4.3% over the past 10 years.

Sold Out: General Electric (GE)

Fairholme Fund sold out his holdings in General Electric. His sale prices were between $15.83 and $21.52, with an estimated average price of $19.01.

General Electric is one of the largest and most diversified industrial corporations in the world. General Electric has a market cap of $212.48 billion; its shares were traded at around $20.01 with a P/E ratio of 15.88 and P/S ratio of 1.41. The dividend yield of General Electric stocks is 2.8%. General Electric had an annual average earnings growth of 13.1% over the past 10 years.

Sold Out: Wellcare Health Plans Inc. (WCG)

Fairholme Fund sold out his holdings in Wellcare Health Plans Inc. His sale prices were between $27.76 and $38.77, with an estimated average price of $31.

WellCare Health Plans Inc. provides managed care services targeted exclusively to government-sponsored healthcare programs, focusing on Medicaid and Medicare. Wellcare Health Plans has a market cap of $2.01 billion; its shares were traded at around $47.33 with a P/E ratio of 14.98 and P/S ratio of 0.37.

Sold Out: Banco Santander S.A. (STD)

Fairholme Fund sold out his holdings in Banco Santander S.A. His sale prices were between $9.62 and $12.69, with an estimated average price of $11.32.

Banco Santander S.A. is the biggest bank in Spain and the biggest international bank in Latin America as well. Banco Santander S.A. has a market cap of $97.2 billion; its shares were traded at around $11.67 with a P/E ratio of 9.26 and P/S ratio of 0.91. The dividend yield of Banco Santander S.A. stocks is 5.74%.

Sold Out: Teva Pharmaceutical Industries Ltd. (TEVA)

Fairholme Fund sold out his holdings in Teva Pharmaceutical Industries Ltd.. His sale prices were between $48.75 and $56.29, with an estimated average price of $52.56.

Teva Pharmaceuticals USA, the business is to develop, manufacture, and market generic pharmaceuticals. Teva Pharmaceutical Industries Ltd. has a market cap of $44.14 billion; its shares were traded at around $47.08 with a P/E ratio of 10.35 and P/S ratio of 2.74. The dividend yield of Teva Pharmaceutical Industries Ltd. stocks is 1.84%. Teva Pharmaceutical Industries Ltd. had an annual average earnings growth of 37.1% over the past 10 years. GuruFocus rated Teva Pharmaceutical Industries Ltd. the business predictability rank of 2.5-star.


Rating: 2.2/5 (11 votes)

Comments

fareastwarriors
Fareastwarriors - 2 years ago
He's still buying financials with conviction. I hope he's right in the longer term.

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