GoodHaven Portfolio Update
Since GoodHaven is practically a brand new fund its no surprise to see them making large additions to existing holdings as they both increase their assets under management and start putting capital to work. There were no reduced positions in the quarter.
That aside there are a few small surprises in the new release:
Probably the biggest item of note is that GOODX has followed their former boss into positions in Sears Holdings (SHLD) and Jefferies Group (JEF), in addition to adding to an existing position in value stalwart Berkshire Hathaway (BRK.B). Since Larry and Keith (yeah, I'm totally on a first name basis with these guys) were with FAIRX when the SHLD position was initiated this is a nice endorsement of former boss Bruce Berkowitz's investment thesis.
The other item that stood out to me was the addition of positions in Southern Union (SO) and Barrick Gold (ABX). These stand out in opposition to the rest of the portfolio as pure macro economic plays whereas almost all other positions seem to follow the contrarian value investor theme one would expect from this fund. They also serve as decidedly defensive stock picks in a portfolio chock full of names that imply a belief in continued economic recovery (names such as Mueller Industries, Mohawk, and Spectrum Brands).
At a combined value of only 3% of the total portfolio there's more to these investment choices than downside protection. But owning SO contrasts sharply with their investment thesis for owning FII. One requires a low interest environment to flourish and the other needs a raising interest environment to return to its old glory.
Link to August holdings: