(GuruFocus, August 5, 2009) Bruce Berkowitz recently released his latest semi-annual report. He disclosed during the first six months of the fiscal year (ended on May 31, 2009), the Fund materially disposed of holdings in the following investments: Canadian Natural Resources Ltd., Mueller Water Products, Inc., DISH Network Corp. Jefferies Group, Inc., and EchoStar Corp.
Here is a brief survey and his holding history of these stocks:
1. Canadian Natural Resources Ltd. (CNQ, Financial)
Canadian Natural Resources Limited is a senior independent oil and natural gas exploration development and production company based in Calgary Alberta. The Company's operations are focused in Western Canada the North Sea and Offshore West Africa. Canadian Natural Resources Ltd. has a market cap of $34.22 billion; its shares were traded at around $63.14 with a P/E ratio of 11.4 and P/S ratio of 2.5. The dividend yield of Canadian Natural Resources Ltd. stocks is 0.7%. Canadian Natural Resources Ltd. had an annual average earning growth of 25.5% over the past 5 years.
Berkowitz first bought 1.3 million shares in 4Q04. By 3Q07, he owned a peak of 20.6 million shares but then he sold down to 4.7 million shares by 2Q08. He increased his ownership in the second half of 2008 to 10.7 million only to reduce to 1.3 million shares in 1Q09.
2. Mueller Water Products, Inc. (MWA-B)
MUELLER WATER PRODUCTS is a manufacturer and marketer of infrastructure and flow control products for use in water distribution networks and treatment facilities. Its product portfolio includes engineered valves hydrants ductile iron pipe and pipe fittings which are utilized by municipalities as well as the commercial and residential construction oil and gas HVAC and fire protection industries.
Berkowitz bought 7.7 million shares of MWA-A first in 4Q06 and increased to 13 million shares in 1Q08. He has since sold shares and by 1Q03, he has sold out.
3. DISH Network Corp. (DISH, Financial)
DISH NETWORK offers satellite television products and services. DISH NETWORK CORPORATION CLASS A COMMON has a market cap of $8.12 billion; its shares were traded at around $18.18 with a P/E ratio of 8 and P/S ratio of 0.7.
Berkowitz first owned 21.9 million shares in 4Q07 and increased to 25 million shares by 2Q08. Since then, he has been selling and sold out by 1Q09.
4. Jefferies Group, Inc. (JEF, Financial)
Jefferies Group Inc. offer a variety of services for institutional investors and middle-market companies. Subsidiaries of Jefferies Group Inc. together comprise a full-service investment bank and institutional securities firm focused on the middle market. Jefferies offers financial advisory capital raising mergers and acquisitions and restructuring services to small and mid-cap companies. Jefferies Group Inc. has a market cap of $3.98 billion; its shares were traded at around $23.25 with and P/S ratio of 2.4. Jefferies Group Inc. had an annual average earning growth of 21.9% over the past 10 years.
Berkowitz first bought 573,600 shares of JEF in 2Q1999 and held some shares through the past 10 years. In 2Q08, he suddenly increased shares held to 2 million shares and by 4Q08, he increased to 4.3 million shares, only to sell them all in 1Q09.
5. EchoStar Corp. (SATS, Financial)
EchoStar Corp. operates two primary businesses: a digital set-top box business and a fixed satellite services business. Their set-top box business designs, develops and distributes set-top boxes and related products for direct-to-home satellite service providers. ECHOSTAR CORPORATION has a market cap of $1.29 billion; its shares were traded at around $14.83 with and P/S ratio of 0.6.
Berkowitz bought 5.8 million shares of SATS in 1Q08 and upped it to 6.1 million in 2Q08. He then sold down to 3.6 million shares and completely sold out by 4Q08.
Conclusion
According to GuruFocus Data, even the five stocks sold by Bruce Berkowitz has rallied substantially from the 52-week lows. Several of the stocks he sold at a loss. Does it mean he sold them too early? Asset management is such a trick business. At the time when investment decisions are executed, there is no telling as to whether they are a good decisions.
Fortunately, the healthy performance of Fairholme Fund vindicated all his decisions.
GuruFocus keeps track of the investment moves of Investment Gurus such as Warren Buffett and Bruce Berkowitz. More information is available to Premium Member. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.Â
Here is a brief survey and his holding history of these stocks:
1. Canadian Natural Resources Ltd. (CNQ, Financial)
Canadian Natural Resources Limited is a senior independent oil and natural gas exploration development and production company based in Calgary Alberta. The Company's operations are focused in Western Canada the North Sea and Offshore West Africa. Canadian Natural Resources Ltd. has a market cap of $34.22 billion; its shares were traded at around $63.14 with a P/E ratio of 11.4 and P/S ratio of 2.5. The dividend yield of Canadian Natural Resources Ltd. stocks is 0.7%. Canadian Natural Resources Ltd. had an annual average earning growth of 25.5% over the past 5 years.
Berkowitz first bought 1.3 million shares in 4Q04. By 3Q07, he owned a peak of 20.6 million shares but then he sold down to 4.7 million shares by 2Q08. He increased his ownership in the second half of 2008 to 10.7 million only to reduce to 1.3 million shares in 1Q09.
2. Mueller Water Products, Inc. (MWA-B)
MUELLER WATER PRODUCTS is a manufacturer and marketer of infrastructure and flow control products for use in water distribution networks and treatment facilities. Its product portfolio includes engineered valves hydrants ductile iron pipe and pipe fittings which are utilized by municipalities as well as the commercial and residential construction oil and gas HVAC and fire protection industries.
Berkowitz bought 7.7 million shares of MWA-A first in 4Q06 and increased to 13 million shares in 1Q08. He has since sold shares and by 1Q03, he has sold out.
3. DISH Network Corp. (DISH, Financial)
DISH NETWORK offers satellite television products and services. DISH NETWORK CORPORATION CLASS A COMMON has a market cap of $8.12 billion; its shares were traded at around $18.18 with a P/E ratio of 8 and P/S ratio of 0.7.
Berkowitz first owned 21.9 million shares in 4Q07 and increased to 25 million shares by 2Q08. Since then, he has been selling and sold out by 1Q09.
4. Jefferies Group, Inc. (JEF, Financial)
Jefferies Group Inc. offer a variety of services for institutional investors and middle-market companies. Subsidiaries of Jefferies Group Inc. together comprise a full-service investment bank and institutional securities firm focused on the middle market. Jefferies offers financial advisory capital raising mergers and acquisitions and restructuring services to small and mid-cap companies. Jefferies Group Inc. has a market cap of $3.98 billion; its shares were traded at around $23.25 with and P/S ratio of 2.4. Jefferies Group Inc. had an annual average earning growth of 21.9% over the past 10 years.
Berkowitz first bought 573,600 shares of JEF in 2Q1999 and held some shares through the past 10 years. In 2Q08, he suddenly increased shares held to 2 million shares and by 4Q08, he increased to 4.3 million shares, only to sell them all in 1Q09.
5. EchoStar Corp. (SATS, Financial)
EchoStar Corp. operates two primary businesses: a digital set-top box business and a fixed satellite services business. Their set-top box business designs, develops and distributes set-top boxes and related products for direct-to-home satellite service providers. ECHOSTAR CORPORATION has a market cap of $1.29 billion; its shares were traded at around $14.83 with and P/S ratio of 0.6.
Berkowitz bought 5.8 million shares of SATS in 1Q08 and upped it to 6.1 million in 2Q08. He then sold down to 3.6 million shares and completely sold out by 4Q08.
Conclusion
According to GuruFocus Data, even the five stocks sold by Bruce Berkowitz has rallied substantially from the 52-week lows. Several of the stocks he sold at a loss. Does it mean he sold them too early? Asset management is such a trick business. At the time when investment decisions are executed, there is no telling as to whether they are a good decisions.
Fortunately, the healthy performance of Fairholme Fund vindicated all his decisions.
GuruFocus keeps track of the investment moves of Investment Gurus such as Warren Buffett and Bruce Berkowitz. More information is available to Premium Member. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.Â
