Bruce Berkowitz

Bruce Berkowitz

Last Update: 02-15-2017
Related: Fairholme Fund
Fairholme Focused Income Fund

Number of Stocks: 8
Number of New Stocks: 0

Total Value: $983 Mil
Q/Q Turnover: 0%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

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.

Historical Allocation of Stock, Bonds, Cash

Total Holding History

Performance of Fairholme Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
201625.6811.9613.7
2015-11.481.38-12.9
2014-2.7213.69-16.4
3-Year Cumulative8.2 (2.7%/year)29 (8.9%/year)-20.8 (-6.2%/year)
201335.5432.393.2
201235.811619.8
5-Year Cumulative99.2 (14.8%/year)98.2 (14.7%/year)1 (0.1%/year)
2011-32.422.11-34.5
201025.4715.0610.4
200939.0126.4612.5
2008-29.7-377.3
200712.355.496.9
10-Year Cumulative85.5 (6.4%/year)95.7 (6.9%/year)-10.2 (-0.5%/year)
200616.7115.790.9
200513.744.918.8
200424.9310.8814.1
200323.9628.68-4.7
2002-1.58-22.120.5
15-Year Cumulative275.2 (9.2%/year)164.2 (6.7%/year)111 (2.5%/year)
20016.18-11.8918.1
200046.54-9.155.6

Top Ranked Articles

Bruce Berkowitz Gets a Win in Judicial Panel on Fannie Mae and Freddie Mac Panel ruled in favor of plaintiffs
Bruce Berkowitz (Trades, Portfolio), founder of Fairholme Fund (Trades, Portfolio)s, has been pursuing compensation for shareholders of Fannie Mae and Freddie Mac, the failed mortgage lenders at the heart of 2008's financial crisis. He sent this letter Monday to inform shareholders that a judicial panel ruled courts would hear cases in plaintiffs' respective districts rather than consolidate them: Read more...
Sears Sells Craftsman Brand to Stanley Black & Decker Company announces 150 store closures
Sears Holdings Corp. (NASDAQ:SHLD) announced today it is selling its well-known Craftsman tool brand to Stanley Black & Decker (NYSE:SWK) and will be closing 150 stores. Read more...
Bruce Berkowitz Comments on Fannie Mae Guru stock highlight
Daniel Schmerin: Let’s turn to Fannie Mae (FNMA) and Freddie Mac. Shareholders expressed a lot of support for our ongoing efforts. I know that you recently corresponded with a soldier bravely serving overseas in the 5th Marine Expeditionary Brigade. Read more...
Bruce Berkowitz Comments on Atwood Oceanics Guru stock highlight
Stressed energy markets led us to invest in senior bonds of offshore driller Atwood Oceanics (NYSE:ATW). The bonds were purchased at attractive prices relative to the backlog of future cash flow from drilling operations and the value of Atwood’s modernized fleet. Thus far, Atwood has weathered tough conditions as the industry slowly rebalances between rig supply and demand in a lower commodity price environment. Atwood’s management has reduced cash operating costs by 25% while extending contracts with customers and suppliers. Atwood also reduced the outstanding senior bond class by over 30% through debt repurchases and raised liquidity through an equity offering. All actions combine to give us comfort that Atwood is positioned to capitalize on the eventual upcycle. Read more...
Bruce Berkowitz Comments on Bank of America Guru stock highlight
Improving operating efficiencies more than counter declining net interest margins. Bank of America (NYSE:BAC)’s return on tangible assets has hit our 10% goal. Yet, common share prices remain below tangible assets (on a per share basis). Recent regulatory approval for a 50% increase in dividends and another $5 billion of stock buybacks will improve capital allocation.
Read more...
» More Bruce Berkowitz Articles

Commentaries and Stories

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Bruce Berkowitz Sells Final Financial Crisis Bet Bank of America Exit also narrows portfolio to several contrarian stocks Bruce Berkowitz - Bruce Berkowitz Sells Final Financial Crisis Bet Bank Of America
Completing his exit from Bank of America (NYSE:BAC) in the fourth quarter also erased the final holdover from Bruce Berkowitz’s famed bets on distressed financials brought to their knees in the 2008 market crisis. More...

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Bruce Berkowitz Comments on Atwood Oceanics Guru stock highlight
Stressed energy markets led us to invest in senior bonds of offshore driller Atwood Oceanics (NYSE:ATW). The bonds were purchased at attractive prices relative to the backlog of future cash flow from drilling operations and the value of Atwood’s modernized fleet. Thus far, Atwood has weathered tough conditions as the industry slowly rebalances between rig supply and demand in a lower commodity price environment. Atwood’s management has reduced cash operating costs by 25% while extending contracts with customers and suppliers. Atwood also reduced the outstanding senior bond class by over 30% through debt repurchases and raised liquidity through an equity offering. All actions combine to give us comfort that Atwood is positioned to capitalize on the eventual upcycle. More...

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Bruce Berkowitz Comments on Chesapeake Energy Guru stock highlight
In early 2016, news on all things related to oil and natural gas devoted little coverage to how declining commodity prices were forcing energy companies to reduce supply, lower debt, and cut operating costs. Time and again, history shows that a commodity price forges its own anchor. Our credit investments in Chesapeake Energy (NYSE:CHK) performed exceptionally well in 2016 due to the combination of operational efficiencies driving down unit costs, higher natural gas prices, and success with debt buybacks and asset sales. More...

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Bruce Berkowitz Comments on Imperial Metals Corp Guru stock highlight
Imperial Metals Corporation (TSX:III) More...

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Bruce Berkowitz Comments on St. Joe Guru stock highlight
To outperform in sports, you must go to where the ball will be – not where it already is. The same is true of investing and our investment in St. Joe (NYSE:JOE). Northwest Florida Beaches International Airport, the newest U.S. international airport, is approaching 1,000,000 “travel legs” per year. Becca Hardin, President of the Bay Economic Development Alliance, which helps bring business to the airport and surrounding area, recently commented: “We’ve got a couple of really hot prospects that are looking at some sites in VentureCrossings … We think 2017 is going to be the year that some of these projects come into fruition and we will be able to announce them.”7 Joe is growing and has the assets and entitlements to meet multi-generational demand for affordable housing, commercial facilities, healthcare, education, and transportation. See for yourself at www.venturecrossings.com and www.watersound.com – you’ll get the idea. As St. Joe’s Chairman, I cordially invite you to visit the beginning of Florida’s newest metropolis. More...

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Bruce Berkowitz Comments on Seritage Guru stock highlight
Fortune Magazine notes that “there is still a lot of life in that American mainstay, the suburban mall,” but the tenant mix is shifting to accommodate new consumer preferences.5 Indeed, growing demand for “very un-mall-like grocery stores, spin-class fitness shops, and entertainment centers” presents attractive opportunities for landlords such as Seritage, who can convert existing retail square footage to “non-retail spaces that people want.”6 In 18 months, Seritage (NYSE:SRG) has re-leased 2.2 million square feet and commenced or completed 48 wholly owned redevelopment projects. Sears now represents 65% of signed lease revenue; down from 90%. Headlines overlook this renter diversification and ignore Seritage’s acceleration with large mixed-use redevelopments in Santa Monica (California), Aventura (Florida), Hicksville (New York), and Redmond (Washington). More...

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Bruce Berkowitz Comments on Sears Guru stock highlight
Focusing on tangible assets has served us over many years, but most believe Sears (NASDAQ:SHLD) to be the exception to the rule. Disruptive technologies; near-zero cost of capital; and few, if any, legacy obligations provide young competitors with great advantages over old-line operators. Today, Airbnb is the largest lodging company in the world without owning a single hotel room. Uber is the world’s largest taxi company without owning a car (and perhaps soon without utilizing a single driver). Intuit’s Rocket Mortgage lends only via the net. Amazon crushes competition without a physical retail footprint. Mega-tech companies are now trusted in all aspects of personal and corporate life. I’m reminded of this every day by my Fairholme team, our clients, fellow directors at Sears, and friends. More...

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Bruce Berkowitz Comments on Fannie Mae and Freddie Mac Guru stock highlight
Odds favor Fannie Mae (FNMA) or Freddie Mac (FMCC) helped your parents and you obtain a first home, and that the same will be true for your children and grandchildren. Fannie Mae and Freddie Mac guarantee the timely payment of principal and interest demanded by lenders. Investors just like you own and fund their operations. Yet, we fight an expropriation of our principal by the government. Here’s where we stand: prosperity exists in a capitalist society only when contracts are honored. The rule of law must be respected and cannot be eliminated by fiat. If you disagree, just see the despair in Venezuela. We look forward to a decision from the United States Court of Appeals for the District of Columbia Circuit that protects and preserves our investments in Fannie Mae and Freddie Mac. Signs indicate that we are nearing the end of our “Alice in Washington” journey. More...

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Bruce Berkowitz's Full-Year Fairholme Fund Letter Berkowitz discusses such holdings as Sears, Fannie Mae and St. Joe in annual letter Bruce Berkowitz - Bruce Berkowitz's Full-Year Fairholme Fund Letter
January 30, 2017 More...

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How to Diversify Without Selling Stocks You Already Own and Love Commit to starting new positions at a smaller size Warren Buffett, Bruce Berkowitz, Glenn Greenberg - How To Diversify Without Selling Stocks You Already Own And Love
Someone emailed me this question: More...

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Ackman, Berkowitz May Not Get Their Fannie Mae Payout So Fast Under Trump Ackman said this week he is banking on reform under new administration Bill Ackman,Bruce Berkowitz - Ackman, Berkowitz May Not Get Their Fannie Mae Payout So Fast Under Trump
Bill Ackman (Trades, Portfolio), who has sued to release Fannie Mae (FNMA) and Freddie Mac (FMCC) from government conservatorship, said this week he has increased confidence that the Trump administration would ensure and hasten the reform of the government-sponsored entities, a move that would further enrich him and a number of his hedge and mutual fund peers. More...

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Largest Insider Trades of the Week Last week's insider trades above $5 million Bruce Berkowitz - Largest Insider Trades Of The Week
The GuruFocus All-in-One Screener can be used to find insider trades from the past week. Under the Insiders tab, change the settings for All Insider Buying to “$5,0000,000+” and the duration to “January 2016” and All Insider Sales to “$5,000,000+.” More...

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Sears Sells Craftsman Brand to Stanley Black & Decker Company announces 150 store closures Edward Lampert,Bruce Berkowitz,Barrow Hanley Mewhi - Sears Sells Craftsman Brand To Stanley Black & Decker
Sears Holdings Corp. (NASDAQ:SHLD) announced today it is selling its well-known Craftsman tool brand to Stanley Black & Decker (NYSE:SWK) and will be closing 150 stores. More...

SEARS,STANLEY,CRAFTSMAN,TOOLS,KMART


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17 Questions With Tim Travis of T&T Capital Management 'You can’t be afraid to lock in a loss as they are inevitable from time to time' Warren Buffett,Bruce Berkowitz,Martin Whitman,Mohn - 17 Questions With Tim Travis Of T&T Capital Management
1. How and why did you get started investing? What is your background? More...

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Bruce Berkowitz's Fairholme Capital Management Conference Call Transcript Berkowitz discusses Fannie Mae progress, market positioning, St. Joe, JC Penney and other holdings Bruce Berkowitz - Bruce Berkowitz's Fairholme Capital Management Conference Call Transcript
EDITED FOR CLARITY AND ACCURACY More...

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Guru and Insider Invests in Lands' End Insider purchased 412,294 shares Edward Lampert, Bruce Berkowitz - Guru And Insider Invests In Lands' End
Edward Lampert (Trades, Portfolio), insider and 10% owner of Lands’ End (NASDAQ:LE), purchased 412,294 shares in eight separate transactions on eight separate days, according to the Securities and Exchange Commission. More...

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How Can You Beat the Market? There are many markets where you can find your edge Warren Buffett,Bruce Berkowitz,Seth Klarman - How Can You Beat The Market?
The investing world is full of tough competition. Better results require hard work. Sometimes even hard work is not enough. More...

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Bruce Berkowitz Leans Toward Lands’ End Guru increased his position in retailer in 3rd quarter Bruce Berkowitz,Edward Lampert,Robert Olstein,Chuc - Bruce Berkowitz Leans Toward Lands’ End
Bruce Berkowitz (Trades, Portfolio) of Fairholme Capital Management increased his position in Lands’ End Inc. (NASDAQ:LE) by 11.8% on Sept. 30. More...

LANDS END, SEARS, BERKOWITZ, FAIRHOLME


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Former Fairholme Managers' New Fund Returning Double S&P Early bets begin to pay off Larry Pitkowsky,Bruce Berkowitz - Former Fairholme Managers' New Fund Returning Double S&P
The GoodHaven Fund (GOODX) surged back from a years-long stretch of underperformance with returns of more than double the S&P 500 this year as early bets on basic materials paid off along with the rebound in the sector. More...

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Berkowitz: You Know It Will Badly Fail at Some Point Berkowitz joins fellow Gurus Ackman and Stahl in their wariness about the growth of assets managed through passive vehicles Bruce Berkowitz - Berkowitz: You Know It Will Badly Fail At Some Point
If the next crash is ETF-based you can’t say you haven’t been warned. After Murray Stahl (Trades, Portfolio), Bill Ackman (Trades, Portfolio), Berkowitz is now also warning these vehicles for all their worth come with drawbacks. More...

BERKOWITZ, CRASH, ETF


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