More than three-fourths of the holdings in Bruce Berkowitz (Trades, Portfolio)’s Fairholme Fund (Trades, Portfolio) are in financial services, and the firm did little to alter that reputation in the fourth quarter of 2014.
The Fairholme Fund (Trades, Portfolio) sold more than 13 million shares of American International Group Inc (AIG, Financial) in the fourth quarter. Fairholme sold 13,573,700 shares of AIG, a New York-based insurance company, for an average price of $53.6 per share. That transaction had a 9.43% impact on the firm’s portfolio.
The firm added one new stock to its portfolio in the most recent quarter – Sears Canada Inc (SCC.Canada) – and added to its existing stakes in five others – Federal Home Loan Mortgage Corp (FMCJK, Financial), Fannie Mae (FNMAS, Financial), Imperial Metals Corp (III.Canada), Federal Home Loan Mortgage Corp (FMCC, Financial) and Federal Home Loan Mortgage Corp (FMCCH).
The purchase of 5,078,700 shares of Sears Canada, a Toronto-based retailer, cost the Fairholme Fund (Trades, Portfolio) an average price of $10.66 per share. It had a 0.75% impact on Fairholme’s portfolio.
In the fourth quarter, Fairholme bought more than 7 million shares of mortgage-finance companies Fannie Mae and Freddie Mac
Fairholme added 3,725,000 shares of Federal Home Loan Mortgage Corp (FMCJK, Financial), a secondary mortgage market company informally known as Freddie Mac and based in Virginia, to the firm’s portfolio. The shares sold for an average price of $4.08 per share and had a 0.26% impact on the portfolio.
Fairholme also acquired 3,537,500 shares of Fannie Mae, a secondary mortgage market company based in Washington, D.C., for an average price of $4.07 per share. The transaction had a 0.24% impact on the portfolio.
Fairholme also reduced its holdings in three companies – American International Group Inc, Lands' End Inc (LE, Financial) and Leucadia National Corp (LUK).
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