Bruce Berkowitz (Trades, Portfolio) of Fairholme Capital Management made some big buys in the third quarter and comparatively fewer reductions, but his top two reductions were his largest transactions in terms of the impact on his portfolio.
Berkowitz’s most significant third-quarter reduction was his sale of more than 96% of his stake in American International Group Inc. (AIG, Financial), a New York-based insurance and financial services company. Berkowitz sold 18,070,051 shares for an average price of $61.12 per share. The transaction had a -22.72% impact on Berkowitz’s portfolio.
American International Group has had a place in Berkowitz’s portfolio since the first quarter of 2010. The $61.12 average price he received per share in the third quarter was at least 30% higher than any amount he has paid for a share in that time.
American International Group has a market cap of $77.36 billion and an enterprise value of $94.72 billion. It has a P/E of 18.4, a forward P/E of 12.0, a P/B of 0.8 and a P/S of 1.4. GuruFocus has given American International Group a Financial Strength rating of 5/10 and a Profitability and Growth rating of 4/10.
Arnold Schneider (Trades, Portfolio), Donald Smith (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio), Larry Robbins (Trades, Portfolio), Richard Pzena (Trades, Portfolio), Richard Snow (Trades, Portfolio), HOTCHKIS & WILEY, Leon Cooperman (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Charles Brandes (Trades, Portfolio), NWQ Managers (Trades, Portfolio), Murray Stahl (Trades, Portfolio), RS Investment Management (Trades, Portfolio) and Chris Davis (Trades, Portfolio) also reduced their stakes in American International Group in the third quarter.
American International Group sold for $62.6 per share Tuesday.
Berkowitz sold more than 63% of his stake in Bank of America Corporation (BAC, Financial), a Charlotte, North Carolina-based banking and financial services company. Berkowitz sold 47,962,167 shares for an average price of $16.85 per share. The deal had a -16.6% impact on Berkowitz’s portfolio.
Bank of America has been in Berkowitz’s portfolio since the first quarter of 2010. The $16.85 average price Berkowitz received for his shares in the third quarter was more than the average prices he paid for the shares he purchased in nearly six years.
Bank of America has a market cap of $180.24 billion and an enterprise value of $297.41 billion. It has a P/E of 12.8, a forward P/E of 10.8, a P/B of 0.8 and a P/S of 2.3. GuruFocus has given Bank of America a Financial Strength rating of 5/10 and a Profitability and Growth rating of 5/10.
Louis Moore Bacon (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Richard Snow (Trades, Portfolio), HOTCHKIS & WILEY, Richard Pzena (Trades, Portfolio), NWQ Managers (Trades, Portfolio), Ruane Cunniff (Trades, Portfolio), T Rowe Price Equity Income Fund (Trades, Portfolio), James Barrow (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Charles Brandes (Trades, Portfolio), Kahn Brothers (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), David Dreman (Trades, Portfolio), Chris Davis (Trades, Portfolio), Jeff Auxier (Trades, Portfolio), Donald Yacktman (Trades, Portfolio) and Fairholme Fund (Trades, Portfolio) also reduced their stakes in Bank of America in the third quarter.
Bank of America sold for $17.28 per share Tuesday.
It was reported Tuesday that Bank of America gave nearly $3 million in grants to 52 Atlanta-area nonprofits this year.
Berkowitz sold 2,104,882 shares of Leucadia National (Trades, Portfolio) Corp. (LUK, Financial), a New York-based holding company, for an average price of $22.43 per share. The deal had a -1.04% impact on Berkowitz’s portfolio.
Leucadia National (Trades, Portfolio) has a market cap of $6.23 billion. It has a P/E of 32,3, a forward P/E of 18.5, a P/B of 0.6 and a P/S of 0.6. GuruFocus has given Leucadia National (Trades, Portfolio) a Financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10.
Third Avenue Management (Trades, Portfolio), Tweedy Browne (Trades, Portfolio), Murray Stahl (Trades, Portfolio), Columbia Wanger (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio) and Fairholme Fund (Trades, Portfolio) also reduced their stakes in Leucadia National (Trades, Portfolio) in the third quarter.
Leucadia National (Trades, Portfolio) sold for $17.17 per share Tuesday.
Berkowitz sold 170,478 shares of The St. Joe Co. (JOE, Financial), a Watersound, Florida-based real estate development company, for an average price of $17.02 per share. The transaction had a -0.05% impact on Berkowitz’s portfolio.
The St. Joe Co. has a market cap of $1.43 billion and an enterprise value of $1.28 billion. It has a P/B of 2.1 and a P/S of 17.8. GuruFocus has given The St. Joe Co. a Financial Strength rating of 8/10 and a Profitability and Growth rating of 7/10.
Mario Gabelli (Trades, Portfolio) and Jim Simons (Trades, Portfolio) also reduced their stakes in The St. Joe Co. in the third quarter.
The St. Joe Co. sold for $19 per share Tuesday.
Berkowitz sold 8,400 shares of Berkshire Hathaway (BRK.B, Financial), an Omaha, Nebraska-based holding company, for an average price of $137 per share. The deal had a -0.02% impact on Berkowitz’s portfolio.
Berkshire Hathaway has had a position in Berkowitz’s portfolio since the first quarter of 2010. Berkowitz acquired nearly 9.5 million shares of Berkshire Hathaway by the middle of 2011, then began selling them. Berkowitz sold shares in all but two quarters between 2011 and his third-quarter reduction, which was made for at least 28% more than he paid for any of the Berkshire Hathaway shares in his portfolio.
Berkshire Hathaway has a market cap of $328.79 billion and an enterprise value of $350.48 billion. It has a P/E of 14.5, a forward P/E of 13.5, a P/B of 1.3 and a P/S of 1.6. GuruFocus has given Berkshire Hathaway a Financial Strength rating of 4/10 and a Profitability and Growth rating of 7/10.
Arnold Van Den Berg (Trades, Portfolio), Jim Simons (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Scott Black (Trades, Portfolio), Chris Davis (Trades, Portfolio), Murray Stahl (Trades, Portfolio), Tweedy Browne (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Mairs and Power (Trades, Portfolio) and Pioneer Investments (Trades, Portfolio) also reduced their stakes in Berkshire Hathaway in the third quarter.
Berkshire Hathaway’s BRK.B stock sold for $134.01 per share Tuesday.
To view the portfolios of more gurus, visit the List of Gurus page. Not a premium member of GuruFocus? Try it free for 7 days.
