As of June 11, 2013, Fairholme Capital Management lists 21 stocks, with three new stocks, in a portfolio valued at $7.86 billion, and a quarter-over-quarter turnover of 6%. The Berkowitz portfolio is heavily weighed with financial services, at 64.3%.
One large holding Berkowitz has in common with Edward Lampert is Sears Holdings Corporation (NASDAQ:SHLD), with a little over 19.5 million shares compared to Lampert’s 33.8 million shares. As the third top holding for Berkowitz, Sears Holdings makes up 12.4% of his portfolio. Out of 20 quarters, the first quarter of 2009 was the only quarter showing a gain of 19.6% for Berkowitz. His holding history:
The Sears makeover visionary and entrepreneurial investor Edward Lampert is founder of ESL Investments Inc., a private investment company, and the chairman of Sears Holdings Corporation. His current portfolio lists eight stocks, no new stocks, and a total value of $4.02 billion with a quarter-over-quarter turnover of 8%. On the list of Forbes 400 Richest Americans, Lampert is No. 68.
For Lampert, Sears is his top holding, comprising 42% of a portfolio almost entirely built on the consumer cyclical sector, at 97.5%.
In nine quarters, SHLD has never produced a gain for Lampert.
As it readjusts to Lampert’s vision for today’s consumers, the Sears share price dropped 56% in 2011 but then spiked 74.99% last March. The SHLD share price is up 5% since January 2013 but down 13% over 12 months. Sears has a market cap of $4.65 billion and trades at a P/B of 1.70. The current SHLD share price is: $43.84.
In addition to Sears Holdings, the other top two holdings for Berkowitz are:
American International Group Inc. (NYSE:AIG) - Up 48% over 12 Months
Shares Owned: 85,900,077
Current Share Price: $46.97
Up 48% over 12 months, American International Group Inc. (NYSE:AIG) has a market cap of $70.03 billion; its shares trade at around $46.97 with a P/E ratio of 37.20 and P/B ratio of 0.70.
Bank of America Corporation (NYSE:BAC) - Up 90% over 12 Months
Shares Owned: 100,589,215
Current Share Price: $14.34
Up 90% over 12 months, Bank of America Corporation (NYSE:BAC) has a market cap of $154.15 billion; its shares trade at around $14.34 with a P/E ratio of 44.40 and P/B ratio of 0.70. The dividend yield of Bank of America Corporation stocks is 0.30%.
After Sears, the other top holdings in Lampert’s portfolio are:
AutoNation Inc. (NYSE:AN) - Up 7% over 12 Months
Shares Owned: 31,444,341
Current Share Price: $45.42
Up 7% over 12 months, AutoNation Inc. (NYSE:AN) has a market cap of $5.59 billion; its shares trade at around $45.42 with a P/E ratio of 17.30 and P/B ratio of 3.20.
Gap Inc. (NYSE:GPS) - Up 54% over 12 Months
Shares Owned: 13,918,647
Current Share Price: $44.70
Up 54% over 12 months, Gap Inc. (NYSE:GPS) has a market cap of $21 billion; its shares trade at around $44.70 with a P/E ratio of 17.20 and P/B ratio of 6.60. The dividend yield of Gap Inc. (NYSE:GPS) stocks is 1.20%. Gap Inc. has had an annual average earnings growth of 8% over the past 10 years.
Learn more about the Fairholme Fund and the Fairholme Focused Income Fund.
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