When Bruce Berkowitz buys a stock, investors should be informed. Why? Since he started his mutual fund, The Fairholme Fund, at the end of 1999, his fund has returned cumulatively more than 200%, while the S&P 500 is still in negative territory. During the 6 months ended May 31, His fund returned more than 10%. Bruce Berkowitz’s most recent stock ideas: Duke Energy (DUK), Ensign Energy Services (ESVIF.PK) and Mohawk Industries (MHK).
Duke energy (DUK) sells electricity in North Carolina. It also provides natural gas sales and distribution service in Canada . Bruce Berkowitz purchased more than 1.9 million shares of Duke energy for his fund. His purchase price is around $29. Today, Duke energy closed at $30.36.
Ensign Energy Services, Inc. (ESVIF.PK) is Canada ’s second largest land-based drilling contractor and the third largest well servicing contractor. They provide oilfield services for the North American and International market. Bruce Berkowitz bought over $4.5 millions shares of Ensign Energy Services, Inc. As of May 31, these shares worth more than $105 million. In the concentrated portfolio of Bruce Berkowitz, Ensign is the 8 th largest holding, account for about 4% of the total portfolio. Since the purchase of Ensign, this stock has contributed to the gain of his fund.
Bruce Berkowitz’s purchase of Mohawk Industries is not that lucky (is it a matter of luck?). Mohawk Industries fell amid higher energy prices and increased concerns about its growth strategies as housing markets slowed, according to Bruce Berkowitz. However, “certain securities declined in value does not always indicate that the investment adviser believes these securities to be less attractive – in fact the investment adviser believes that some price declines may present significant buying opportunities.”
Bruce Berkowitz certainly has a lot of money to invest, since he has seen significant money inflows recently. He added to existing holdings in Berkshire Hathaway, Inc., Canadian Natural Resources, EchoStar Communications, IDT Corporation, Penn West Energy Trust, and Sears Holdings. Berkshire Hathaway, Inc., EchoStar Communications Corp. and Canadian Natural Resources Ltd. are the top 3 holdings of the Fairholme Fund, each accounts for 10% or more of the total portfolio.
During the last 6 months, Bruce Berkowitz sold Coutrywide Financial, Ethan Allen, Freddie Mac, MCI (and merger successor Verizon), Mercury General, RHJ International.