Bruce Berkowitz

Fairholme Capital Management

Last Update: 2013-05-15

Number of Stocks: 21
Number of New Stocks: 3

Total Value: $7,860 Mil
Q/Q Turnover: 6%

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Bruce Berkowitz's Profile & Performance

Profile

Bruce Berkowitz is the founder and the Managing Member of the Fairholme Fund. Prior to forming Fairholme Capital Management, Mr. Berkowitz was a Managing Director of Smith Barney, Inc. from December of 1993 to October of 1997.

Web Page:http://www.fairholmefunds.com/

Investing Philosophy

Bruce Berkowitz concentrates his investments in a relatively small number of companies. He thinks that the more diversified the portfolio, the more likely the performance will be average. He likes companies with great managers, and deeply undervalued stocks. Benjamin Graham's "The Intelligent Investor" serves as the inspiration for Berkowitz?investment strategy. He focuses investments on companies that have exceptional management, that generate free cash, and that are cheaply priced. Berkowitz will also invest in mediocre companies that are trading at a significant discount to intrinsic value where there exists a catalyst ?an event that makes it likely the gap between market price and intrinsic value will narrow in a reasonable amount of time.

Total Holding History

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Performance of Fairholme Fund

Year	Return (%)	S&P500 (%)	Excess Gain (%)
2012	35.81	15.4	20.4
2011	-32.42	2.08	-34.5
2010	25.5	15.06	10.4
3-Year Cumulative	15.2 (4.8%/year)	35.5 (10.7%/year)	-20.3 (-5.9%/year)
2009	39.01	26.46	12.5
2008	-29.7	-37	7.3
5-Year Cumulative	12.6 (2.4%/year)	8 (1.5%/year)	4.6 (0.9%/year)
2007	12.35	5.61	6.7
2006	16.71	15.79	0.9
2005	13.74	4.91	8.8
2004	24.93	12	12.9
2003	23.96	28.7	-4.7
10-Year Cumulative	160 (10%/year)	99.7 (7.2%/year)	60.3 (2.8%/year)
2002	-1.58	-22.1	20.5
2001	6.18	-11.9	18.1
2000	46.54	-9.1	55.6

Commentaries and Stories

Currently 5.00/5

Rating: 5.0/5 (4 votes)

Bruce Berkowitz Buys Chesapeake Energy, Berkshire Hathaway Inc, Sears, Sells CIT, MBIA, Wells Fargo

May 16, 2013

Bruce Berkowitz had a good year in 2012. That was after a miserable 2011. It seems that the redemption of funds have stopped and he could buy some more stocks. He hasn’t done much buying over the past year due to redemption. But he did buy back some past holdings in his fund. He buys into Chesapeake Energy, Canadian Natural Resources, and Genworth Financial. All of them were the past holdings in his portfolio. He added to Berkshire Hathaway, Sears Holdings, Leucadia National Corporation, sells CIT Group, MBIA, Wells Fargo & Co during the 3-months ended 03/31/2013, according to the most recent filings of his investment company, Fairholme Capital Management. As of 03/31/2013, Fairholme Capital Management owns 21 stocks with a total value of $7.9 billion. These are the details of the buys and sells. More...

Currently 4.40/5

Rating: 4.4/5 (5 votes)

Bruce Berkowitz Pulls Plug on CIT - Sold Out 16 Million Shares

April 30, 2013

“Bullish on America” investor phenom Bruce Berkowitz once said, "I don’t invest in things I can’t understand.” More...

SPECIALTY FINANCE, INSURANCE - DIVERSIFIED, BANKS - REGIONAL - US, DEPARTMENT STORES, REAL ESTATE - GENERAL, CONGLOMERATES

Currently 3.40/5

Rating: 3.4/5 (10 votes)

Zenvestor Berkowitz and Savant Lampert – Fears for Sears?

March 31, 2013

From the stratosphere of hedge fund heights, where investors are more like wizards, how do these extraordinary managers really see the future of Sears Holdings Corporation (SHLD)? How does a Guru grok the future of this classic American retailer that has reflected changes in the country and commerce since 1925? We can look for patterns and believers. More...

RETAIL

Currently 2.33/5

Rating: 2.3/5 (3 votes)

OSH Trades by Lampert and Gurus - Can Orchard Bear Fruit?

March 29, 2013

In the world of garden tools, paint and outdoor furniture — where we shop for price — can Orchard Supply Hardware (OSH) compete with retail giants for top-of-mind among potential customers and flourish in California’s neighborhoods as the go-to place for home improvement? Only the Gurus know the answer, maybe. Meanwhile, California-centric Orchard Supply Hardware faces tough competition in the home improvement and garden market, selling against The Home Depot, Ace Hardware, Costco, Wal-Mart, Target, TrueValue and Lowe’s. More...

Currently 3.74/5

Rating: 3.7/5 (19 votes)

Bruce Berkowitz’s Investments Still Have Significant Upside

March 25, 2013

Though Bruce Berkowitz’s Fairholme Fund (FAIRX) has already come back from a 32.42% loss in 2011 to a 35.81% gain 2012, he believes his investment thesis for the stocks largely responsible for the deficit will not play out in full for about five years. In a February interview with Bloomberg, Berkowitz gave an idea of his vision for the future of the stocks in his fund. “Over the next five to seven years, as they recover, equity values will increase and market prices more so,” he said. Most of the companies, he said, he bought at half of liquidation value. More...

Currently 4.00/5

Rating: 4.0/5 (3 votes)

Steve Forbes Interviews Former AIG CEO Hank Greenberg

March 22, 2013

The insurance industry and value investing are quite intertwined. More...

Currently 4.05/5

Rating: 4.1/5 (20 votes)

'Zenvestor' Bruce Berkowitz – Cycles of Fortune

March 20, 2013

Eminently quotable and relativistic Guru Investor Bruce Berkowitz, founder and manager of the Fairholme Fund, radiates a zen-like understanding of human behavior and the market. His fund lost 32% in 2011, only to bounce back to the Himalayan-like heights of hedge fund performance charts in 2012. Thanks to his massive bets that financial giants American International Group Inc. (AIG), Bank of America (BAC) and Citigroup (C) would recover from the 2008 crisis, the Fairholme Fund is back at the very top of hedge funds once again. Devastated by the industry meltdown, his top financial picks are contrarian stocks, and great examples of how Berkowitz buys at a discount and holds for the long term. More...

FINANCIAL SERVIVCES, INSURANCE, BANKING

Currently 2.92/5

Rating: 2.9/5 (13 votes)

Bruce Berkowitz Provides a Recipe Designed to Quadruple Our Money

March 19, 2013

One thing is certain: Bruce Berkowitz is never going to be accused of being a “closet index” investor. More...

Currently 0.00/5

Rating: 0.0/5 (0 votes)

Eddie Lampert's Sears Sees Q4 Revenue Decline

February 28, 2013

Hedge fund manager and investing savant Edward Lampert formed Sears Holdings (SHLD) out of Sears and a Kmart emerging from bankruptcy in 2005. While several respected investors also poured money into the company, over the years, performance has been lumpy even as he as chairman has increased his control of the company, culminating in the installment of Lampert as CEO in January and fourth quarter results released today. More...

Currently 4.77/5

Rating: 4.8/5 (13 votes)

Bruce Berkowitz Interview Transcript - Feb 2013

February 26, 2013

Bruce Berkowitz Interview Transcript - Full Feb 2013 Bloomberg Interview More...

Currently 3.50/5

Rating: 3.5/5 (8 votes)

Protecting Yourself Against Fear

February 22, 2013

When I looked today at Hewlett Packard’s (HPQ) three-month, 40% run, I became physically ill. Then, remembering that I had only myself to blame, I punched myself in the leg for good measure. Why, you ask? Because three months ago I sold HP near its lowest point in 15 years. It was not the size of the mistake that frustrated me – it was a small position – but that I succumbed to the fear and made a rare emotion-based sell decision. More...

BRUCE BERKOWITZ, FAIRHOLME FUND, NASSIM TALEB

Currently 4.56/5

Rating: 4.6/5 (9 votes)

Bruce Berkowitz Interview: Why He Closed His Funds

February 4, 2013

Bruce Berkowitz probably learned a lesson or two from the cash flood into and out of his funds in 2011. He now closes the funds to new investors. More...

Currently 4.75/5

Rating: 4.8/5 (8 votes)

Fairholme’s Bruce Berkowitz Announces New Holding Sears Canada and Increase to Leucadia

February 1, 2013

Famed mutual fund manager Bruce Berkowitz seems satisfied with his Fairholme Fund (FAIRX)’s positioning – he made few adjustments in the fourth quarter. He made headlines in 2009 and 2010 for weighting his portfolio heavily in troubled financials, whose recovery delayed, leaving him with a year of unprecedented bad performance. In 2011, he lost 32.42%, compared to a modest gain for the S&P index. More...

Currently 1.67/5

Rating: 1.7/5 (3 votes)

Bruce Berkowitz's 2012 Letter for the Fairholme Allocation Fund

February 1, 2013

Mutual fund investing involves risks including loss of principal. The chart below covers the period from inception of The Fairholme Allocation Fund (December 31, 2010) to December 31, 2012. Past performance information to December 31, 2012, quoted below is unaudited and does not guarantee future results. The investment return and principal value of an investment in The Fairholme Allocation Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance information quoted below. Performance figures assume reinvestment of dividends and capital gains, but do not reflect a 2.00% redemption fee on shares redeemed within 60 days of purchase. Any questions you may have, including most recent month-end performance, can be answered by calling Shareholder Services at 1.866.202.2263. The S&P 500 Index is a broad based measurement of changes in the stock market, is used for comparative purposes only, and is not meant to be indicative of The Fairholme Allocation Fund's performance, asset composition or volatility. Given the wide scope of securities held by the S&P 500, it should be More...

Currently 5.00/5

Rating: 5.0/5 (1 vote)

Bruce Berkowitz Annual Letter for the Fairholme Focused Income Fund

February 1, 2013

Mutual fund investing involves risks, including loss of principal. The chart below covers the period from inception of The Fairholme Focused Income Fund (December 31, 2009) to December 31, 2012. Past performance information to December 31, 2012, quoted below is unaudited and does not guarantee future results. The investment return and principal value of an investment in The Fairholme Focused Income Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance information quoted below. Performance figures assume reinvestment of dividends and capital gains. Any questions you may have, including most recent month-end performance, can be answered by calling Shareholder Services at 1.866.202.2263. The Barclays Capital U.S. Aggregate Bond Index is an unmanaged market-weighted index comprised of investment grade corporate bonds (rated BBB or better), mortgages, and U.S. Treasury and government agency More...

Currently 4.54/5

Rating: 4.5/5 (13 votes)

Bruce Berkowitz's 2012 Letter for the Fairholme Fund

February 1, 2013

Mutual fund investing involves risks, including loss of principal. The chart below covers the period from inception of The Fairholme Fund (December 29, 1999) to December 31, 2012. Past performance information to December 31, 2012, quoted below is unaudited and does not guarantee future results. The investment return and principal value of an investment in The Fairholme Fund will fl uctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. current performance may be higher or lower than the performance information quoted below. Performance fi gures assume reinvestment of dividends and capital gains, but do not refl ect a 2.00% redemption fee on shares redeemed within 60 days of purchase. Any questions you may have, including most recent month-end performance, can be answered by calling Shareholder Services at 1.866.202.2263. The S&P 500 Index is a broad based measurement of changes in the stock market, is used for comparative purposes only, and is not meant to be indicative of The [url=http://www.gurufocus.com/StockBuy.php?GuruName=Fairholme+Fund]Fairholme More...

Currently 3.54/5

Rating: 3.5/5 (13 votes)

If There Is One Stock to Focus Your Attention on for 2013, It Has to Be Berkowitz High-Conviction Bet AIG

December 27, 2012

In the Fairholme Fund’s June 30 semi-annual report, Bruce Berkowitz offered only a few lines on portfolio holding AIG. Those comments were as follows: More...

Currently 3.64/5

Rating: 3.6/5 (14 votes)

Investing Guru of the Year 2012 Is Bruce Berkowitz

December 19, 2012

In a landslide vote by readers, Bruce Berkowitz, the leader of the Fairholme Fund, has been named GuruFocus’ Guru of the Year for 2012. Berkowitz received 46.7% of votes, followed by David Tepper who received 17.8% and Prem Watsa who received 15.1%. More...

Currently 3.73/5

Rating: 3.7/5 (15 votes)

Best Guru Contender, Bruce Berkowitz’s Most Attractive Stocks This Year

December 14, 2012

Investor names have flooded the nominations for GuruFocus’ 2012 Guru of the Year. Big names like Tom Russo, David Tepper, Mohnish Pabrai and Donald Yacktman have all been the topic of discussions about who to award the infamous title to. Among the Guru names that have been passed around is none other than Fairholme Fund’s Bruce Berkowitz. More...

Currently 3.95/5

Rating: 4.0/5 (20 votes)

Merry Early Christmas to BAC and BAC Warrants Guru Holders as Prices Surge

December 7, 2012

Investors who invested in warrants of Bank of America (BAC) were rewarded recently: The price has soared 20.5% from low to high in less than a month, to trade for $4.58 on Friday. News that Citigroup (C) would lay off 11,000 employees, or roughly 4% of its workforce, pushed that bank’s stock up 6 percent, and affected other banks as well. Bank of America, up 91% year to date, rose about 8% since the layoff news was announced on Wednesday. More...

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Add Notes, Comments or Ask Questions

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Comments

Reply Ernestko22 - 2 years ago

Hi! Bruce;
My name is Ernesto Moreno. I just discovered this web page and is facisnated. I went through your profile and your achievements are great. Bruce, I have question. How do you pick a market sector weighting? I am learning about the market and eventulally I want to start trading, but I would like to be preventive by doing a thourough reseach before buying any stock. Any tip will be appreciated

Best

Ernesto

Reply Vuasu - 3 years ago

Kudos to Gurufocus for adding annual performance table to Gurus' profiles!