Bruce Berkowitz (Trades, Portfolio) is an equity fund manager and registered investment adviser. He founded Fairholme Capital Management in 1997 and he formerly worked for the Lehman Brothers as a managing director of Smith Barney. Most recently, Berkowitz has made two significant reductions in American International Group Inc. (AIG, Financial) and Bank of America (BAC, Financial).
Berkowitz reduced his holdings by 742,936 shares in AIG, a reduction of 96.05%, and 27,523,418 shares in Bank of America, a 63.54% reduction.
AIG is also traded in Japan, Chile, Germany and Argentina.
AIG serves more than 88 million people in 130 countries worldwide. It was originally founded in 1919. AIG provides property casualty insurance, life insurance, retirement products and other financial services globally.
AIG has a market cap of $75.52 billion, a P/E ratio of 17.91, a P/S ratio of 1.39 and a dividend yield of 1.08%.
Below is a Peter Lynch chart for AIG:
Berkowtiz also reduced his holding in Bank of America by selling 27,523,418 shares, a reduction of 63.54%.
The company is also traded in the UK, Japan, Germany and Chile.
Bank of America focuses on five business segments: consumer and business banking, consumer real estate services, global wealth and investment management, global banking and global markets.
The bank has a market cap of $181.8 billion, a P/E ratio of 12.96, a P/S ratio of 2.33 and a dividend yield of 1.15%.
Below is a Peter Lynch chart for Bank of America:
With such large reductions in two large companies, it’s possible that Berkowitz is predicting a correction in the market in the near future.
Cheers to your investment success.
