10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

Once a decade discount

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

Fairholme Focused Income Fund Buys Telephone Companies and Big Pharmas: T, TEF, AZN, GSK, BMY, LLY

Fairholme Focused Income Fund buys heavily into telephone companies and pharmaceuticals to generate yield for the fund. It bought into Telefonica S.A. (TEF), Astrazeneca Plc (AZN), Glaxosmithkline Plc (GSK), Bristolmyers Squibb Co. (BMY), Eli Lilly & Co. (LLY), AT&T Inc. (T), sells General Growth Properties Inc. (GGP), Mercury General Corp. (MCY) during the three months ended 02/28/2011, according to the most recent filings of his investment company. As of 02/28/2011, he owns 11 stocks with a total value of $112 million.

As we discussed, Fairholme Focused Income Fund is the third portfolio we track for Bruce Berkowitz. The objective of this fund is to generate incomes. Therefore, it heavily invests in high dividend yield stocks. Compared with YTD loss of 2.3% at Fairholme Fund, the Focused Income Fund gained 4.93% in the first quarter of the year.

This is the portfolio chart of Fairholme Focused Income 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 Focused Income Fund's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Fairholme+Focused+Income+Fund

This is the sector weightings of his portfolio:

Telecommunications 52.9%
Health Care 16.5%
Oil & Gas 11.3%
Financials 1.4%


These are the top five holdings of Fairholme Focused Income Fund

  1. TELEFONICA S.A. (TEF) - 817,500 shares, 18.7% of the total portfolio. Shares added by 10000%
  2. Verizon Communications Inc. (VZ) - 542,700 shares, 17.92% of the total portfolio.
  3. AT&T INC. (T) - 642,700 shares, 16.32% of the total portfolio. Shares added by 3.21%
  4. BANCO SANTANDER S.A. (STD) - 1,122,500 shares, 12.35% of the total portfolio.
  5. ROYAL DUTCH SHELL PLC (RDS.B) - 174,900 shares, 11.3% of the total portfolio.


Added: AT&t Inc. (T)

Fairholme Focused Income Fund added to his holdings in AT&t Inc. by 3.21%. His purchase prices were between $27.49 and $29.98, with an estimated average price of $28.58. The impact to his portfolio due to this purchase was 0.51%. His holdings were 642,700 shares as of 02/28/2011.

AT&T Inc. is a premier communications holding company. AT&t Inc. has a market cap of $185 billion; its shares were traded at around $31.26 with a P/E ratio of 13.71 and P/S ratio of 1.49. The dividend yield of AT&t Inc. stocks is 5.5%. AT&t Inc. had an annual average earnings growth of 4.7% over the past 10 years.

New Purchase: Telefonica S.A. (TEF)

Fairholme Focused Income Fund initiated holdings in Telefonica S.A. His purchase prices were between $21.3 and $25.74, with an estimated average price of $23.7. The impact to his portfolio due to this purchase was 18.7%. His holdings were 817,500 shares as of 02/28/2011.

Telefonica is the largest supplier of telecommunications services in the Spanish and Portuguese speaking world. Telefonica S.A. has a market cap of $111.77 billion; its shares were traded at around $24.49 with a P/E ratio of 6.67 and P/S ratio of 1.34. The dividend yield of Telefonica S.A. stocks is 9.25%. Telefonica S.A. had an annual average earnings growth of 25.5% over the past 10 years. GuruFocus rated Telefonica S.A. the business predictability rank of 4.5-star.

New Purchase: Astrazeneca Plc (AZN)

Fairholme Focused Income Fund initiated holdings in Astrazeneca Plc. His purchase prices were between $45.8 and $49.38, with an estimated average price of $47.73. The impact to his portfolio due to this purchase was 5.67%. His holdings were 129,000 shares as of 02/28/2011.

AstraZeneca Plc is one of the top five pharmaceutical companies in the world based on sales and is a therapeutic leader in cardiovascular, gastrointestinal, oncology, anesthesia including pain management, central nervous system (CNS) and respiratory products. Astrazeneca Plc has a market cap of $71.23 billion; its shares were traded at around $50.55 with a P/E ratio of 8.51 and P/S ratio of 2.14. The dividend yield of Astrazeneca Plc stocks is 3.6%. Astrazeneca Plc had an annual average earnings growth of 18% over the past 10 years. GuruFocus rated AstraZeneca Plc the business predictability rank of 4.5-star.

New Purchase: Glaxosmithkline Plc (GSK)

Fairholme Focused Income Fund initiated holdings in Glaxosmithkline Plc. His purchase prices were between $36.33 and $40.04, with an estimated average price of $38.66. The impact to his portfolio due to this purchase was 5.53%. His holdings were 160,000 shares as of 02/28/2011.

GlaxoSmithKline is one of the world's research-based pharmaceutical and healthcare companies and is committed to improving the quality of human life by enabling people to do more, feel better and live longer. Glaxosmithkline Plc has a market cap of $111.69 billion; its shares were traded at around $42.99 with a P/E ratio of 15.3 and P/S ratio of 2.43. The dividend yield of Glaxosmithkline Plc stocks is 5.97%. Glaxosmithkline Plc had an annual average earnings growth of 3.2% over the past 10 years.

New Purchase: BristolMyers Squibb Co. (BMY)

Fairholme Focused Income Fund initiated holdings in Bristolmyers Squibb Co. His purchase prices were between $25.18 and $26.72, with an estimated average price of $25.93. The impact to his portfolio due to this purchase was 5.47%. His holdings were 237,000 shares as of 02/28/2011.

Bristol-Myers Squibb Company is a global leader in the research and development of innovative lifesaving and life-enhancing treatments for heart disease; high blood pressure; stroke; diabetes; cancer; HIV/AIDS and other infectious diseases; depression, schizophrenia and other mental disorders; pain; and other conditions. Bristolmyers Squibb Co. has a market cap of $48.82 billion; its shares were traded at around $28.64 with a P/E ratio of 13.14 and P/S ratio of 2.51. The dividend yield of Bristolmyers Squibb Co. stocks is 4.61%. Bristolmyers Squibb Co. had an annual average earnings growth of 15% over the past five years.

New Purchase: Eli Lilly & Co. (LLY)

Fairholme Focused Income Fund initiated holdings in Eli Lilly & Co. His purchase prices were between $33.66 and $35.84, with an estimated average price of $34.88. The impact to his portfolio due to this purchase was 5.29%. His holdings were 171,000 shares as of 02/28/2011.

Eli Lilly and Co. discovers, develops, manufactures and sells products in one significant business segment — pharmaceutical products. Eli Lilly & Co. has a market cap of $44.44 billion; its shares were traded at around $38.39 with a P/E ratio of 8 and P/S ratio of 1.93. The dividend yield of Eli Lilly & Co. stocks is 5.11%. Eli Lilly & Co. had an annual average earnings growth of 1.3% over the past 10 years.

Sold Out: General Growth Properties Inc. (GGP)

Fairholme Focused Income 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: Mercury General Corp. (MCY)

Fairholme Focused Income Fund sold out his holdings in Mercury General Corp. His sale prices were between $39.5 and $44.49, with an estimated average price of $42.51.

Mercury General Corp. is engaged primarily in writing all risk classifications of automobile insurance in a number of states, principally California. Mercury General Corp. has a market cap of $2.23 billion; its shares were traded at around $40.78 with a P/E ratio of 20.81 and P/S ratio of 0.81. The dividend yield of Mercury General Corp. stocks is 5.89%.

Rating: 3.4/5 (8 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK