Fairholme Fund (Trades, Portfolio) is managed by its founder Bruce Berkowitz (Trades, Portfolio). For the 10-year period after inception in 1999, the fund gained 253% while the Standard & Poor's lost money. During the first quarter the fund traded some stocks as follows:
It exited its position in Bank of America Corp. (BAC) with an impact of -7.44% on the portfolio.
The company, through its banking and various nonbanking subsidiaries throughout the U.S. and in selected international markets, provides a diversified range of banking and nonbanking financial services and products. During the first quarter loans in primary lending segments grew 11% from the same quarter of a year before and deposits increased 6%.
GuruFocus gives the stock a profitability and growth rating of 5 out of 10 with ROE of 5.45% and ROA of 0.72% that are underperforming 70% of the companies in the Global Banks - Global industry. Financial strength has a rating of 6 out of 10 with cash to debt of 0.70 that is below the industry median of 2.79.
Dodge & Cox is the company's largest shareholder among the gurus with 1.81% of outstanding shares followed by Barrow, Hanley, Mewhinney & Strauss with 0.82%, HOTCHKIS & WILEY with 0.47%, Ken Fisher (Trades, Portfolio) with 0.42%, Bill Nygren (Trades, Portfolio) with 0.34%, Richard Pzena (Trades, Portfolio) with 0.28%, Steven Romick (Trades, Portfolio) with 0.23% and Pioneer Investments (Trades, Portfolio) with 0.23%.
The guru closed its position in Leucadia National (Trades, Portfolio) Corp. (LUK) with an impact of -3.04% on the portfolio.
The company through its subsidiaries is engaged in a variety of businesses, including investment banking and capital markets, beef processing, manufacturing, energy projects, asset management and real estate and other investments, which include Berkadia, Linkem and Garcadia. First quarter net revenues reflect realized and unrealized gains of $686.6 million related to its recent FXCM (FXCM, Financial) investment, $18.6 million of which was received in cash during the quarter, and $668.0 million of which represents an unrealized fair value gain on the value of the investment.
GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with ROE of 2.62% and ROA of 0.56% that are underperforming 71% of other companies in the Global Packaged Foods industry. Financial strength has a rating of 6 out of 10 with cash to debt of 4.27 that is above the industry median of 0.67.
The largest shareholder among the gurus is Romick with 4.92% of outstanding shares followed by First Pacific Advisors (Trades, Portfolio) with 4.82%, Charles Brandes (Trades, Portfolio) with 1.24%, Columbia Wanger (Trades, Portfolio) with 1.04%, Murray Stahl (Trades, Portfolio) with 0.29% and Third Avenue Management (Trades, Portfolio) with 0.06%.
The guru reduced its stake in Fannie Mae (FNMA) by 18.21% with an impact of -0.19% on the portfolio.
The company is a government-sponsored enterprise that was chartered by Congress in 1938 to support liquidity, stability and affordability in the secondary mortgage market, where existing mortgage-related assets are purchased and sold. The strong 2015 results demonstrate its commitment to improving both the company and the broader housing finance system. Fourth quarter net income of $2.5 billion increased from $2.0 billion in the third quarter of 2015.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of -6.13% and ROA of 0.34% that are underperforming 96% of other companies in the Global Specialty Finance industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.01 that is far above the industry median of 2.79.
The fund reduced its stake in Federal Home Loan Mortgage Corp. (FMCC) by 7.30% with an impact of -0.12% on the portfolio.
The company was chartered by Congress in 1970 to provide liquidity, stability and affordability to the U.S. housing market. Freddie Mac's participation in the secondary mortgage market includes providing its credit guarantee for residential mortgages originated by mortgage lenders and investing in mortgage loans and mortgage-related securities. First quarter book value decreased 1.5% and reported net income of 25 cents per diluted common share compares to net income of 26 cents per diluted common share for the previous quarter.
GuruFocus gives the stock a profitability and growth rating of 3 out of 10 with ROE of -0.76% and ROA of 0.33% that are underperforming 94% of the companies in the Global Specialty Finance industry. Financial strength has a rating of 6 out of 10 with cash to debt of 0.18 that is below the industry median of 1.64.
The fund raised its stake in Sears Holdings Corp. (SHLD) by 1.95% with an impact of 0.26% on the portfolio.
The company along with its subsidiaries is an integrated retailer with 1,725 full-line and specialty retail stores in the U.S., operating through Kmart and Sears. During the first quarter net loss attributable to Sears Holdings' shareholders was $2.85 loss per diluted share compared to a loss of $3.79 loss per diluted share for the prior-year first quarter and domestic adjusted EBITDA of $(141) million compared to $(178) million in the prior-year first quarter.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of -8.85% and ROA -24.46% that are underperforming 91% of the companies in the Global Department Stores industry. Financial strength has a rating of 6 out of 10 with cash to debt of 0.08 that is below the industry median of 1.00.
Berkowitz is the company's largest shareholder among the gurus with 24.89% of outstanding shares followed by Edward Lampert (Trades, Portfolio) with 20.92%, Fairholme Fund (Trades, Portfolio) with 13.58%, Stahl with 2.41%, Francis Chou (Trades, Portfolio) with 0.84% and Jim Simons (Trades, Portfolio) with 0.09%.
