Bruce Berkowitz (Trades, Portfolio) is the founder and the managing member of the Fairholme Fund (Trades, Portfolio). During the first quarter he traded the following stocks:
The guru increased his shares in Bank of America Corp. (BAC) by 119.31% with an impact of 3.81% on the portfolio.
It is a bank holding and a financial holding company. Through its subsidiaries, it provides banking and nonbanking financial services and products throughout the U.S. and in selected international markets. During the last quarter deposits increased 6% from the first quarter of 2015, and net income was 21 cents per diluted common share.
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 72% 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 3.15.
Dodge & Cox is the company's largest shareholder among the gurus with 2.1% of outstanding shares followed by Barrow, Hanley, Mewhinney & Strauss with 0.83%, HOTCHKIS & WILEY with 0.58%, Ken Fisher (Trades, Portfolio) with 0.42%, Bill Nygren (Trades, Portfolio) with 0.35%, Richard Pzena (Trades, Portfolio) with 0.29%, First Pacific Advisors (Trades, Portfolio) with 0.26% and Steven Romick (Trades, Portfolio) with 0.23%.
The investor almost closed his stake in Leucadia National (Trades, Portfolio) Corp. (LUK), reducing his shares by 98.55% with an impact of -3.2% on the portfolio.
The company through its subsidiaries is engaged in investment banking and capital markets, beef processing, manufacturing, energy projects, asset management and real estate.
GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with ROE of -3.15% and ROA of -0.66% that are underperforming 82% of the companies in the Global Packaged Foods industry. Financial strength has a rating of 6 out of 10 with cash to debt of 3.66 that is above the industry median of 0.75.
The largest shareholder among the gurus is First Pacific Advisors (Trades, Portfolio) with 5.77% of outstanding shares followed by Romick with 4.92%, Charles Brandes (Trades, Portfolio) with 1.38%, Murray Stahl (Trades, Portfolio) with 0.29%, Prem Watsa (Trades, Portfolio) with 0.08%, Third Avenue Management (Trades, Portfolio) with 0.07% and First Eagle Investment (Trades, Portfolio) with 0.06%.
The guru closed his stake in MRC Global Inc. (MRS) with an impact of -2.99% on the portfolio.
The company along with its subsidiaries is an industrial distributor of pipe, valves and fittings and related products and services to the upstream, midstream and downstream energy industries.
First quarter sales were 39% lower than the first quarter of 2015 and 19% lower than the fourth quarter of 2015. As compared to last year, reduced customer activity across all segments and sectors drove the decline as a result of lower oil and natural gas prices.
GuruFocus gives the stock a profitability and growth rating of 5 out of 10 with ROE of -32.15% and ROA of -12.04% that are underperforming 79% of the companies in the Global Oil & Gas Equipment & Services industry. Financial strength has a rating of 6 out of 10 with cash to debt of 0.23 that is below the industry median of 0.43.
Tweedy Browne (Trades, Portfolio) is the other largest shareholder of the company among the gurus with 5.81 % of outstanding shares followed by Fairholme Fund (Trades, Portfolio) with 4.79%, Joel Greenblatt (Trades, Portfolio) with 2.31%, Arnold Schneider (Trades, Portfolio) with 1.99% and Jim Simons (Trades, Portfolio) with 1.68%.
The investor reduced his shares in Sears Holdings Corp. (SHLD) by 5.69% with an impact of -1.35% on the portfolio.
The company along with its subsidiaries is an integrated retailer with full-line and specialty retail stores in the U.S., operating through Kmart and Sears.
Fourth quarter gross margin rate for the year was 23.1%, a slight improvement over the prior year, and revenues decreased $796 million to $7.3 billion for the fourth quarter of 2015, compared to revenues of $8.1 billion for the prior-year fourth quarter.
GuruFocus gives the stock a profitability and growth rating of 3 out of 10 with ROC of -24.46% and ROA of -8.85% 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 1.07.
Other notable shareholders among the gurus are Edward Lampert (Trades, Portfolio) with 20.92% of outstanding shares followed by Fairholme Fund (Trades, Portfolio) with 13.58%, Stahl with 2.41%, Francis Chou (Trades, Portfolio) with 0.07% and Simons with 0.06%.
The guru exited his shares in Canadian Natural Resources Ltd. (CNQ) with an impact of -0.99% on the portfolio.
The company is engaged in the acquisition, exploration, development, production, marketing and sale of crude oil, NGLs and natural gas.
The first quarter was operationally strong for Canadian Natural. The company delivered production volumes within guidance and lower operating costs. It achieved record quarterly natural gas volumes of 1,786 MMcf/d, 1% and 5% higher than first quarter of 2015 and fourth quarter of 2015 levels.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of -1.77% and ROA of -0.82% that are outperforming 75% of the companies in the Global Oil & Gas E&P industry. Financial strength has a rating of 6 out of 10 with cash to debt of 0.07 that is far below the industry median of 0.43.
T Rowe Price Equity Income Fund (Trades, Portfolio) is the company's largest shareholder among the gurus with 0.85% of outstanding shares followed by First Eagle Investment (Trades, Portfolio) with 0.74%, Ruane Cunniff (Trades, Portfolio) with 0.06%, Jeremy Grantham (Trades, Portfolio) with 0.05%, Ray Dalio (Trades, Portfolio) with 0.03% and Simons with 0.01%.
The investor closed his stake in American International Group Inc. (AIG) with an impact of -0.69% on the portfolio.
The company, through its subsidiaries, provides insurance and related services in the U.S. and abroad.
During the first quarter normalized ROE increased by 110 basis points to 8.9% from the first quarter of 2015, and the company returned $4.0 billion to shareholders.
GuruFocus gives the stock a profitability and growth rating of 4 out of 10 with ROE of -0.46% and ROA of -0.09% that are underperforming 87% of the companies in the Global Insurance - Diversified industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.05 that is far below the industry median of 9,999.0.
The largest shareholder among the gurus is Carl Icahn (Trades, Portfolio) with 3.97% of outstanding shares followed by HOTCHKIS & WILEY with 1.5%, John Paulson (Trades, Portfolio) with 1%, First Pacific Advisors (Trades, Portfolio) with 0.98%, Romick with 0.84%, First Eagle Investment (Trades, Portfolio) with 0.74% and Nygren with 0.65%.
The guru exited his stake in International Business Machines Corp. (IBM) with an impact of -0.41% on the portfolio.
The company creates business value for clients and solves business problems through integrated solutions that leverage information technology and knowledge of business processes.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 94.25% and ROA of 11.44% that are outperforming 84% of the companies in the Global Information Technology Services industry. Financial strength has a rating of 8 out of 10 with cash to debt of 0.33 that is below the industry median of 22.21.
Warren Buffett (Trades, Portfolio) is the company's largest shareholder among the gurus with 8.46% of outstanding shares followed by Diamond Hill Capital (Trades, Portfolio) with 0.14%, Watsa with 0.14%, Grantham with 0.1%, Barrow, Hanley, Mewhinney & Strauss with 0.09%, Ruane Cunniff (Trades, Portfolio) with 0.08%, Lampert with 0.07% and Greenblatt with 0.04%.
The investor reduced his shares in NOW Inc. (DNOW) by 5.62% with an impact of -0.26% on the portfolio.
The company offers consumable maintenance, repair and operating supplies, pipe, valves, electrical, artificial lift solutions, mill tools and spare parts. It offers services and solutions for upstream, midstream and downstream energy and industrial sectors.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of -33.54% and ROA of -25.60% that are underperforming 89% of the companies in the Global Oil & Gas Equipment & Services industry. Financial strength has a rating of 7 out of 10 with cash to debt of 2.38 that is above the industry median of 0.43.
The largest shareholder among the gurus is First Eagle Investment (Trades, Portfolio) with 7.81% of outstanding shares followed by Berkowitz with 6.31%, Fairholme Fund (Trades, Portfolio) with 5.83%, Buffett with 1.7%, Simons with 0.45%, Greenblatt with 0.33% and Tom Gayner (Trades, Portfolio) with 0.11%.
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