Bruce Berkowitz

Bruce Berkowitz

Last Update: 12-18-2015
Related: Fairholme Fund
Fairholme Focused Income Fund

Number of Stocks: 22
Number of New Stocks: 9

Total Value: $3,471 Mil
Q/Q Turnover: 24%

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 (%)
2015-11.481.19-12.7
2014-2.7213.69-16.4
201335.5432.393.2
3-Year Cumulative16.7 (5.3%/year)52.3 (15.1%/year)-35.6 (-9.8%/year)
201235.811619.8
2011-32.422.11-34.5
5-Year Cumulative7.1 (1.4%/year)80.4 (12.5%/year)-73.3 (-11.1%/year)
201025.4715.0610.4
200939.0126.4612.5
2008-29.7-377.3
200712.355.496.9
200616.7115.790.9
10-Year Cumulative72.2 (5.6%/year)102 (7.3%/year)-29.8 (-1.7%/year)
200513.744.918.8
200424.9310.8814.1
200323.9628.68-4.7
2002-1.58-22.120.5
20016.18-11.8918.1
15-Year Cumulative217 (8%/year)107.5 (5%/year)109.5 (3%/year)
200046.54-9.155.6

Top Ranked Articles

Bruce Berkowitz Shows New Stock Positions for Q4 Two are from oil industry
Bruce Berkowitz (Trades, Portfolio) released his fourth-quarter letter and portfolio update Wednesday, reporting he purchased three new stocks. Read more...
Bruce Berkowitz Comments on AIG Guru stock highlight
Fund shareholders have realized over $2 billion in gains from our investment in American International Group (“AIG”) common stock. Today, our remaining AIG (NYSE:AIG) stake is composed of double-ratchet, long-dated warrants (14.2% of Fund assets) received in connection with AIG’s 2011 recapitalization. These warrants are our largest position for three reasons: (i) AIG’s common shares continue to trade at a meaningful discount to the company’s tangible book value of nearly $80 per share; (ii) AIG has the potential to materially improve the cost structure of its property and casualty business, as its expense ratio remains higher than its peer group average; and (iii) future dividend increases and capital distributions will improve the conversion ratio and exercise price of the warrants until their 2021 expiry. Read more...
Bruce Berkowitz Comments on Sears Holdings Corp Guru stock highlight
Sears Holdings Corporation (“Sears”) (NASDAQ:SHLD) common stock, warrants, and bonds comprise 13.2% of Fund assets. Our ongoing valuation work reinforces our longstanding belief that Sears is worth multiples of its current market price (as evidenced in the chart below), largely based on its vast real estate empire and disparate businesses confi gured to sell, deliver, connect, control, service, and replace all manner of consumer products. Throughout the year, the Fund took advantage of price declines to increase its stake.

Last year’s sale of 266 properties for $3.1 billion unlocked one-fourth of the company’s real estate square footage. The properties included in the transaction were not exclusively the crème de la crème of the company’s real estate portfolio as many have falsely asserted. Instead, the quality of the properties included in the transaction closely mirrors the approximately 170 million square feet of real estate retained by Sears today as Read more...
Bruce Berkowitz Comments on Seritage Growth Properties Guru stock highlight
Seritage Growth Properties (“Seritage”) (NYSE:SRG), a newly formed public real estate investment trust (REIT) that purchased the aforementioned 266 properties from Sears in mid-2015, comprises 2.5% of Fund assets. Our detailed property-by-property analysis, which has been independently corroborated by third party real estate professionals, indicates that Seritage is signifi cantly undervalued at current market prices. One can only speculate that Warren Buffett (Trades,Portfolio) concurs with our assessment given his recent decision to personally acquire shares. Seritage’s real estate portfolio, which includes 235 properties and joint venture interests in 31 additional properties, has the opportunity to command signifi Read more...
Bruce Berkowitz Comments on Fannie Mae Guru stock highlight
In 1986, famed Magellan Fund manager Peter Lynch touted Fannie Mae (OTCBB:FNMA) as “the best business, literally, in America.” At that time, Fannie Mae had a price-to-earnings ratio of one. Lynch noted that “when a company can earn back the price of its stock in one year, you’ve found a good deal.” Thirty years later, the price-to-earnings ratio of Fannie Mae is back at one – but the circumstances are quite different. In our view, current prices of Fannie Mae as well as its smaller cousin Freddie Mac do not refl ect the economic value of existing assets, let alone future earnings power, embedded in these world-class franchises. Indeed, the companies are not priced for a run-off of their existing businesses; they are priced for the permanent expropriation of all assets.

Fannie Mae and Freddie Mac represent 16.4% of Fund assets, primarily in the form of preferred stock. For those unfamiliar, Fannie Mae and Freddie Mac are simple and straightforward insurance companies. They are not Read more...
» More Bruce Berkowitz Articles

Commentaries and Stories

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Bruce Berkowitz Shows New Stock Positions for Q4 Two are from oil industry Bruce Berkowitz - Bruce Berkowitz Shows New Stock Positions For Q4
Bruce Berkowitz (Trades, Portfolio) released his fourth-quarter letter and portfolio update Wednesday, reporting he purchased three new stocks. More...

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Rating: 0.0/5 (0 votes)

Bruce Berkowitz Comments on Imperial Metals Corp Guru stock highlight
Imperial Metals Corporation (“Imperial”) (TSX:III), whose securities comprise 4.9% of Fund assets, posted record production results in 2015: 88.1 million pounds of copper, 44.7 thousand ounces of gold, and 224.5 thousand ounces of silver. During the year, the company focused on ramping up its world-class Red Chris mine that is expected to produce copper at cash costs around $1.20 per pound for decades to come. While primarily known for its huge copper reserve, Red Chris also boasts the seventh largest gold deposit in the world. We anticipate that Imperial will prudently weather this commodity cycle while preparing for the next development phase at Red Chris. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Bruce Berkowitz Comments on Bank of America Guru stock highlight
Bank of America (NYSE:BAC) warrants comprise 9.4% of Fund assets. The warrants offer attractive upside given that the company trades under tangible book value per share of $15.62. CEO Brian Moynihan recently noted that Bank of America’s 2015 results were the “company’s highest earnings in nearly a decade,” and much more improvement is possible. As the company reduces expenses and increases capital distributions, the double-ratchet feature of our warrants ensures that we are more than compensated for dividends paid to common equity shareholders. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Bruce Berkowitz Comments on Sears Holdings Corp Guru stock highlight
Sears Holdings Corporation (“Sears”) (NASDAQ:SHLD) common stock, warrants, and bonds comprise 13.2% of Fund assets. Our ongoing valuation work reinforces our longstanding belief that Sears is worth multiples of its current market price (as evidenced in the chart below), largely based on its vast real estate empire and disparate businesses confi gured to sell, deliver, connect, control, service, and replace all manner of consumer products. Throughout the year, the Fund took advantage of price declines to increase its stake. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Bruce Berkowitz Comments on Imperial Metals Corporation Guru stock highlight
Imperial Metals Corporation (“Imperial”) (TSX:III) common shares and senior unsecured notes due 2019 comprise 5.4% of Fund assets. We first bought Imperial after observing Murray Edwards develop Canadian Natural Resources Limited – particularly its massive Horizon oil sands project – into a world-class energy producer. We believe that Imperial’s Red Chris mine is a replay of low-cost Horizon, but with one of the largest copper resources and the seventh largest gold deposit in the world. Imperial posted record production results in 2015, and we expect the company to weather the current commodity cycle while preparing for the next upswing. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Bruce Berkowitz Comments on St. Joe Company Guru stock highlight
The St. Joe Company (“St. Joe”) (NYSE:JOE) comprises 12.8% of Fund assets. Today, St. Joe stands well capitalized and focused on future developments in Florida’s Bay and Walton Counties. The company is entitled to develop 170,000 residential units and 22 million square feet of retail, commercial, and industrial facilities on 110,500 acres of nearly contiguous land on the “Emerald Coast.” We believe that the intrinsic value of St. Joe’s current entitlements and other assets is substantially higher than its recent market price, and were pleased that the company repurchased almost 17 million shares of its common stock (over 18% of the outstanding public float) at $18 per share in 2015. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Bruce Berkowitz Comments on Fannie Mae Guru stock highlight
In 1986, famed Magellan Fund manager Peter Lynch touted Fannie Mae (OTCBB:FNMA) as “the best business, literally, in America.” At that time, Fannie Mae had a price-to-earnings ratio of one. Lynch noted that “when a company can earn back the price of its stock in one year, you’ve found a good deal.” Thirty years later, the price-to-earnings ratio of Fannie Mae is back at one – but the circumstances are quite different. In our view, current prices of Fannie Mae as well as its smaller cousin Freddie Mac do not refl ect the economic value of existing assets, let alone future earnings power, embedded in these world-class franchises. Indeed, the companies are not priced for a run-off of their existing businesses; they are priced for the permanent expropriation of all assets.Fannie Mae and Freddie Mac represent 16.4% of Fund assets, primarily in the form of preferred stock. For those unfamiliar, Fannie Mae and Freddie Mac are simple and straightforward insurance companies. They are not More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Bruce Berkowitz Comments on Seritage Growth Properties Guru stock highlight
Seritage Growth Properties (“Seritage”) (NYSE:SRG), a newly formed public real estate investment trust (REIT) that purchased the aforementioned 266 properties from Sears in mid-2015, comprises 2.5% of Fund assets. Our detailed property-by-property analysis, which has been independently corroborated by third party real estate professionals, indicates that Seritage is signifi cantly undervalued at current market prices. One can only speculate that Warren Buffett (Trades,Portfolio) concurs with our assessment given his recent decision to personally acquire shares. Seritage’s real estate portfolio, which includes 235 properties and joint venture interests in 31 additional properties, has the opportunity to command signifi More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Bruce Berkowitz Comments on Sears Holdings Corp Guru stock highlight
Sears Holdings Corporation (“Sears”) (NASDAQ:SHLD) common stock, warrants, and bonds comprise 13.2% of Fund assets. Our ongoing valuation work reinforces our longstanding belief that Sears is worth multiples of its current market price (as evidenced in the chart below), largely based on its vast real estate empire and disparate businesses confi gured to sell, deliver, connect, control, service, and replace all manner of consumer products. Throughout the year, the Fund took advantage of price declines to increase its stake.Last year’s sale of 266 properties for $3.1 billion unlocked one-fourth of the company’s real estate square footage. The properties included in the transaction were not exclusively the crème de la crème of the company’s real estate portfolio as many have falsely asserted. Instead, the quality of the properties included in the transaction closely mirrors the approximately 170 million square feet of real estate retained by Sears today as More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Bruce Berkowitz Comments on AIG Guru stock highlight
Fund shareholders have realized over $2 billion in gains from our investment in American International Group (“AIG”) common stock. Today, our remaining AIG (NYSE:AIG) stake is composed of double-ratchet, long-dated warrants (14.2% of Fund assets) received in connection with AIG’s 2011 recapitalization. These warrants are our largest position for three reasons: (i) AIG’s common shares continue to trade at a meaningful discount to the company’s tangible book value of nearly $80 per share; (ii) AIG has the potential to materially improve the cost structure of its property and casualty business, as its expense ratio remains higher than its peer group average; and (iii) future dividend increases and capital distributions will improve the conversion ratio and exercise price of the warrants until their 2021 expiry. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Bruce Berkowitz's Annual Shareholder Letter for Fairholme Focused Income Fund 2015 Review of holdings and markets Bruce Berkowitz - Bruce Berkowitz's Annual Shareholder Letter For Fairholme Focused Income Fund 2015
To the Shareholders and Directors of The Fairholme Focused Income Fund: More...

  • Currently 5.00/5

Rating: 5.0/5 (2 votes)

Bruce Berkowitz's Annual Shareholder Letter for Fairholme Allocation Fund 2015 Review of holdings and markets Bruce Berkowitz - Bruce Berkowitz's Annual Shareholder Letter For Fairholme Allocation Fund 2015
To the Shareholders and Directors of The Fairholme Allocation Fund: More...

  • Currently 4.50/5

Rating: 4.5/5 (2 votes)

Bruce Berkowitz's Fairholme Fund Year-End Letter Fund declines 11.5% in 2015 Bruce Berkowitz - Bruce Berkowitz's Fairholme Fund Year-End Letter
The Fairholme Fund (Trades, Portfolio) (the “Fund” or “FAIRX”) decreased 11.48% versus a 1.38% gain for the S&P 500 Index (the “S&P 500”) in 2015. The following table compares the Fund’s unaudited performance (after expenses) with that of the S&P 500, with dividends and distributions reinvested, for various periods ending December 31, 2015. More...

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Rating: 0.0/5 (0 votes)

Insiders Buy Northern Oil & Gas, Sears Holdings 10% owner Bruce Berkowitz purchases shares of Sears Holdings Bruce Berkowitz - Insiders Buy Northern Oil & Gas, Sears Holdings
The All-In-One Screener can be used to find insider buys and sales over the last week by clicking on the Insiders tab and changing the settings for All Insider Buying to “$1,000,000+” and duration to "January 2016." More...

  • Currently 5.00/5

Rating: 5.0/5 (2 votes)

Most-Bought Financial Citigroup Gets Even Cheaper After Strong Q4 Results The financial company the most value gurus purchased in Q4 has continued to decline this year Bruce Berkowitz,George Soros - Most-Bought Financial Citigroup Gets Even Cheaper After Strong Q4 Results
The financial stock bought by the most gurus, Citigroup Inc. (NYSE:C), announced mostly earnings results Friday, yet the stock became even cheaper. More...

  • Currently 4.89/5

Rating: 4.9/5 (9 votes)

Now Inc. Could Be Multi-Bagger Over Next Decade Distributor to oil and gas sector has deep moat and strong management Bruce Berkowitz,First Eagle Investment - Now Inc. Could Be Multi-Bagger Over Next Decade
Here goes another bloody day for the energy sector. It is a good time to consider Now Inc. (DNOW), which could be one of those babies thrown out with the bath water. More...

LONG, ENERGY


  • Currently 4.00/5

Rating: 4.0/5 (1 vote)

3 Investment Opportunities Double Tapped by Insiders and Gurus GuruFocus' double buy screen is a valuable source of interesting investment ideas Warren Buffett,Bruce Berkowitz,Edward Lampert,Jim  - 3 Investment Opportunities Double Tapped By Insiders And Gurus
GuruFocus has various tools and screeners available to make the quest for your next great investment a little bit more efficient. A tool of which I am fond is the Double Buy screen. By employing it you can easily screen a list of stocks that have been double tapped by both gurus and insiders. Both types of events tend to trigger my interest, but when they occur simultaneously it is time to pay close attention. I regularly review the list, and these are currently the top three stocks that come up on the screen: More...

LONG, ENERGY, AEROSPACE, INDUSTRIAL, REIT, BUFFETT


  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Berkowitz Boosts Sears Holdings Position After Turning Activist Fairholme manager plans to enforce changes at company Bruce Berkowitz - Berkowitz Boosts Sears Holdings Position After Turning Activist
Bruce Berkowitz (Trades, Portfolio) increased his shareholding of Sears Holdings Corp. after announcing a more active role in the company as its stock price slipped 39% this year in its third under leadership of CEO and investor Eddie Lampert. More...

  • Currently 4.20/5

Rating: 4.2/5 (5 votes)

Happy New Year From Bruce Berkowitz: Buffett Affirms Seritage, Buy When Others Sell Fairholme manager touches on holdings, strategy, opportunity and patience in New Year's message Bruce Berkowitz - Happy New Year From Bruce Berkowitz: Buffett Affirms Seritage, Buy When Others Sell
Dear Fellow Shareholders, More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Berkowitz's 3rd-Quarter Reductions Have Big Impact on Portfolio Guru slashes stakes in American International Group and Bank of America Bruce Berkowitz - Berkowitz's 3rd-Quarter Reductions Have Big Impact On Portfolio
Bruce Berkowitz (Trades, Portfolio) of Fairholme Capital Management made some big buys in the third quarter and comparatively fewer reductions, but his top two reductions were his largest transactions in terms of the impact on his portfolio. More...

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User Comments

Fox10
ReplyFox10 - 1 year ago
I would like to see a proof that berkowitz sold out of fannie and freddie (and mind you, way BEFORE the infamous lamberth-ruling). As it stands, it seems that both fairholme and pershing Square chose to not list fannie and freddie in their 13f filings anymore because they are NOTT required to do so under SEC rules. That is a huge difference though, to claiming they sold out! grurufocus may wish to comment/correct its tables?
Mocheng
ReplyMocheng - 1 year ago
On the homepage, it said Bruce added more SHLD, but it's not showing when I clicked to view details, is there anyway to find out how many shares he added?
Gurufocus
ReplyGurufocus - 2 years ago
"where's the fannie and freddie?"

They are in the portfolio of Fairholme Fund:

http://www.gurufocus.com/holdings.php?GuruName=Fairholme+Fund
A632784
ReplyA632784 - 2 years ago
where's the fannie and freddie??????????????????
Gegogego
ReplyGegogego - 2 years ago
Why are Freddie Mac and Fannie Mae not listed in current holdings or recent buys?

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