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Berkowitz Doubled Down on Stocks: AmeriCredit, Forest Laboratories, Hertz Global, Humana, RSC Holdings, Sears, St. Joe Company, United Rentals, WellCare, Winthrop Realty

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guruek

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GuruFocus has been digging into Bruce Berkowitz’s 2009 Annual Report to Fairholme Fund’s shareholdersand found the exact costs that Bruce Berkowitz paid for some of his stock.

As a mutual fund, Fairholme only need to report to its shareholders twice a year the exact holdings (number of shares and value at the end of the period) in the fund. It needs to report the exact portfolio (again, number of shares and value at the end of the period) to SEC each quarter. Either way, mutual fund managers do not need to tell the shareholder or SEC or anybody else how much exactly they paid for the stocks in the portfolio.

Situation changes completely when the fund owns more than 5% percent of the shares outstanding of a stock. At the threshold of 5%, a stock became that of an affiliated company, per Investment Company of 1940. Mutual fund needs to disclose the securities held (equity and debt) and the COSTs of the affiliated companies.

Now that success has fed Berkowitz with more than $12 billion of asset under management, and he tends to concentrate on a few good ideas rather than diversifying among many mediocre stocks, he routinely owns more than 5% of a stocks.

Among them, all the domestically traded stocks are listed in this table:

As of 11/30/20082009 Gross Additions
SymbolCompanyPriceSharesCostPriceSharesCostPrice
1ACFAmeriCredit Corp.$23.38 16,692,000 $199,228,670 $11.94 15,122,670 $86,437,475 $5.72
2FRXForest Laboratories$32.07 16,556,100 $546,918,488 $33.03 100,000 $2,127,110 $21.27
3HTZHertz Global Holdings, Inc.$9.78 18,630,100 $127,456,844 $6.84 30,863,400 $182,452,500 $5.91
4HUMHumana, Inc.$49.02 7,563,500 $249,984,758 $33.05 7,557,900 $253,283,113 $33.51
5RRRRSC Holdings$7.89 7,598,800 $52,914,631 $6.96
6SHLDSears Holdings Corp.$108.85 11,239,671 $1,056,090,389 $93.96 2,979,300 $151,359,650 $50.80
7JOEThe St. Joe Co.$31.28 9,654,700 $310,621,238 $32.17 13,829,302 $304,577,663 $22.02
8URIUnited Rentals, Inc.$8.39 8,291,818 $144,230,328 $17.39
9WCGWellcare Health Plans, Inc.$31.23 4,145,200 $146,541,372 $35.35 73,000 $965,183 $13.22
10FURWinthrop Realty Trust$12.96 2,988,648 $27,048,650 $9.05


Observations:

1. Berkowitz was able to take advantage of the low prices offered by the market’s dramatic decline. The current prices for most the stocks on the list are higher than much higher than the 2009 acquisition price. His double-down strategy worked handsomely.

2. Several stocks still sell at prices paid by Berkowitz paid prior to 2008 year end: FRX, JOE, URI, WCG. With the markets at 18 months high, these stock may warrants a deeper look. Two of the stocks are in Health Care sector (FRX and WCG).

Holding History:

GuruFocus has holding history data for these stocks:

AmeriCredit Corp. (ACF)

AmeriCredit Corp. is a independent automobile finance company that provides financing solutions indirectly through auto dealers and directly to consumers in the United States and Canada. Americredit Corp. has a market cap of $3.13 billion; its shares were traded at around $23.38 with a P/E ratio of 28.2 and P/S ratio of 1.5.

Berkowitz’s holding history with ACF:

QuarterEnd Date Value ($1000) Shares QuarterEnd Price
20091231 673,047 35,349,099 $ 19.04
20090930 510,133 32,307,322 $ 15.79
20090630 437,764 32,307,322 $ 13.55
20090331 189,321 32,307,322 $ 5.86
20081231 246,828 32,307,322 $ 7.64
20080930 213,228 21,049,200 $ 10.13
20080630 129,262 14,995,600 $ 8.62
20080331 130,662 12,975,400 $ 10.07



Forest Laboratories Inc. (FRX)

Forest Laboratories, Inc. and its subsidiaries develop, manufacture and sell both branded and generic forms of ethical drug products which require a physician's prescription, as well as non-prescription pharmaceuticalproducts sold over-the-counter. Forest Laboratories Inc. has a market cap of $9.7 billion; its shares were traded at around $32.07 with a P/E ratio of 9.3 and P/S ratio of 2.4. Forest Laboratories Inc. had an annual average earning growth of 20.9% over the past 10 years. GuruFocus rated Forest Laboratories Inc. the business predictability rank of 2-star.

Berkowitz’s holding history with FRX

QuarterEnd Date Value ($1000) Shares QuarterEnd Price
20091231 440,951 13,732,500 $ 32.11
20090930 439,110 14,915,414 $ 29.44
20090630 455,677 18,147,244 $ 25.11
20090331 440,680 20,067,400 $ 21.96
20081231 520,538 20,437,332 $ 25.47
20080930 511,701 18,094,100 $ 28.28
20080630 426,260 12,270,000 $ 34.74


Hertz Global Holdings Inc. (HTZ)

HERTZ GLOBAL HOLDING is the worlds largest general use car rental brand, operating from approximately 8,100 locations in 147 countries worldwide. Hertz Global Holdings Inc. has a market cap of $4.01 billion; its shares were traded at around $9.78 with a P/E ratio of 46.6 and P/S ratio of 0.5.

Berkowitz’s holding history with HTZ

QuarterEnd Date Value ($1000) Shares QuarterEnd Price
20091231 704,936 59,138,966 $ 11.92
20090930 634,969 58,630,603 $ 10.83
20090630 469,951 58,817,361 $ 7.99
20090331 167,961 42,738,138 $ 3.93
20081231 173,398 34,200,829 $ 5.07
20080930 93,569 12,360,500 $ 7.57


Humana Inc. (HUM)

Humana, Inc. is a health services company that facilitates the delivery of health care services through networks of providers to its medical members. Humana Inc. has a market cap of $8.34 billion; its shares were traded at around $49.02 with a P/E ratio of 8 and P/S ratio of 0.3. Humana Inc. had an annual average earning growth of 23.5% over the past 10 years. GuruFocus rated Humana Inc. the business predictability rank of 3-star.

Berkowitz’s holding history with HUM

QuarterEnd Date Value ($1000) Shares QuarterEnd Price
20091231 696,956 15,879,600 $ 43.89
20090930 558,105 14,962,600 $ 37.3
20090630 307,677 9,537,400 $ 32.26
20090331 176,238 6,757,600 $ 26.08
20081231 304,786 8,175,600 $ 37.28


RSC Holdings Inc. (RRR)

RSC HOLDINGS is one of the largest equipment rental providers in North America. Rsc Holdings Inc. has a market cap of $815.9 million; its shares were traded at around $7.89 with and P/S ratio of 0.6.

Berkowitz’s holding history with RRR

QuarterEnd Date Value ($1000) Shares QuarterEnd Price
20091231 76,128 10,813,600 $ 7.04
20090930 44,435 6,112,100 $ 7.27
20090630 19,334 2,877,100 $ 6.72




Sears Holdings Corp. (SHLD)

Sears Holdings Corporation, the parent of Kmart and Sears, Roebuck and Co. Sears Holdings Corp. has a market cap of $12.58 billion; its shares were traded at around $108.85 with a P/E ratio of 31.6 and P/S ratio of 0.3. Sears Holdings Corp. had an annual average earning growth of 12.1% over the past 10 years.

Berkowitz’s holding history with SHLD

QuarterEnd Date Value ($1000) Shares QuarterEnd Price
20091231 1,247,714 14,951,639 $ 83.45
20090930 997,743 15,277,039 $ 65.31
20090630 903,105 13,576,439 $ 66.52
20090331 655,433 14,338,939 $ 45.71
20081231 497,526 12,799,740 $ 38.87
20080930 1,364,791 14,596,690 $ 93.5
20080630 911,085 12,368,790 $ 73.66
20080331 918,768 8,999,590 $ 102.09
20071231 630,304 6,176,419 $ 102.05
20070930 367,925 2,892,489 $ 127.2
20070630 167,396 987,589 $ 169.5
20070331 178,284 989,589 $ 180.16
20061231 166,397 990,871 $ 167.93
20060930 156,046 987,071 $ 158.09
20060630 154,201 995,871 $ 154.84
20060331 142,465 1,080,671 $ 131.83
20051231 83,109 719,371 $ 115.53
20050930 18,664 150,000 $ 124.43


The St. Joe Company (JOE)

St. Joe Company is one of the Southeast's largest real estate operating companies. The St. Joe Company has a market cap of $2.9 billion; its shares were traded at around $31.28 with and P/S ratio of 20.9.

Berkowitz’s holding history with JOE

QuarterEnd Date Value ($1000) Shares QuarterEnd Price
20091231 775,219 26,833,468 $ 28.89
20090930 745,814 25,611,755 $ 29.12
20090630 655,668 24,751,543 $ 26.49
20090331 308,959 18,456,326 $ 16.74
20081231 273,421 11,242,676 $ 24.32
20080930 430,494 11,012,900 $ 39.09
20080630 325,776 9,492,300 $ 34.32
20080331 552,801 12,876,800 $ 42.93
20071231 127,985 3,604,200 $ 35.51


United Rentals Inc. (URI)

United Rentals, Inc. is one of North America's largest equipment rental companies with over branches in the majority of states, several Canadian provinces and Mexico. United Rentals Inc. has a market cap of $504.8 million; its shares were traded at around $8.39 with and P/S ratio of 0.2. GuruFocus rated United Rentals Inc. the business predictability rank of 2-star.

Berkowitz’s holding history with URI

QuarterEnd Date Value ($1000) Shares QuarterEnd Price
20091231 44,801 4,566,862 $ 9.81
20090930 75,432 7,323,525 $ 10.3
20090630 65,327 10,065,761 $ 6.49
20090331 43,111 10,240,205 $ 4.21
20081231 96,711 10,604,310 $ 9.12
20080930 131,837 8,650,727 $ 15.24
20080630 190,109 9,694,500 $ 19.61
20080331 84,682 4,494,800 $ 18.84


WellCare Health Plans Inc. (WCG)

WellCare Health Plans, Inc. provides managed care services targeted exclusively to government-sponsored healthcare programs, focusing on Medicaid and Medicare. Wellcare Health Plans Inc. has a market cap of $1.32 billion; its shares were traded at around $31.23 with a P/E ratio of 12.7 and P/S ratio of 0.2.

Berkowitz’s holding history with WCG

QuarterEnd Date Value ($1000) Shares QuarterEnd Price
20091231 289,772 7,882,809 $ 36.76
20090930 206,751 8,387,474 $ 24.65
20090630 155,312 8,399,763 $ 18.49
20090331 91,512 8,134,413 $ 11.25
20081231 106,910 8,313,407 $ 12.86
20080930 299,711 8,325,300 $ 36
20080630 297,316 8,224,500 $ 36.15
20080331 297,687 7,642,800 $ 38.95
20071231 324,445 7,650,200 $ 42.41


WINTHROP REALTY TRUST (FUR)

Winthrop Realty Trust is a Boston-based real estate investment trust. Winthrop Realty Trust has a market cap of $264.6 million; its shares were traded at around $12.96 with a P/E ratio of 7.9 and P/S ratio of 5.5. The dividend yield of Winthrop Realty Trust stocks is 5.1%.

Berkowitz’s holding history with FUR

QuarterEnd Date Value ($1000) Shares QuarterEnd Price
20091231 46,673 4,297,670 $ 10.86
20090930 11,106 1,140,294 $ 9.74
20090630 10,272 1,150,234 $ 8.93
20090331 8,352 1,208,678 $ 6.91
20081231 13,601 1,254,717 $ 10.84


Conclusion

Even the invincible Bruce Berkowitz got into situations when he bought a stock and the stock started to decline. By taking advantage of the lower price offered by the market he scored big with a number of his holdings.

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Rating: 4.0/5 (23 votes)

Comments

Buffetteer
Buffetteer - 4 years ago
See the Other 2 related articles:

Bruce Berkowitz's HIGH YIELD Stocks & HIGH GROWTH Stocks

canopy2829
Canopy2829 - 4 years ago


Oustanding information, my rating is 5 all the way.

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