Fairholme Focused Income Fund Premium Guru

Last Update: 02-03-2012
Related: Bruce Berkowitz
Fairholme Fund

Number of Stocks: 11
Number of New Stocks: 0

Total Value: $7,931 Mil
Q/Q Turnover: 14%

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

Fairholme Focused Income Fund Watch

  • Fairholme Focused Income Fund Buys Financials: BAC, C

    Fairholme Focused Income Fund is managed by Bruce Berkowitz, one of the best investors among the newer generation. Voted as the Domestic-Stock Fund Manager of the Decade in 2009, Berkowitz is known for his relatively concentrated portfolio. He holds a relatively small number of companies, believing that the more diversified the portfolio, the more likely that the performance will be average. He targets deeply undervalued stocks with proficient management and strong free cash flow. His Fairholme Focused Income Fund seeks current income, other forms of cash distributions, and capital preservation. To meet these objectives, the fund invests in a focused portfolio of cash distributing securities and has the flexibility to invest in numerous different securities, including corporate debt securities, government debt securities, bank loans, convertible bonds, and equity securities. The fund follows Fairholme's focused, multi-sector, value-based approach. According to its second quarter portfolio update, Fairholme Focused Income Fund's biggest moves included new positions in Bank of America (BAC) and Citigroup (C).

    Bank of America Corp. (BAC)  

  • Fairholme Focused Income Fund Buys BAC, C, LLY, AZN, GSK, BMY; Sells VZ, T

    Fairholme Focused Income Fund added to its holdings in Eli Lilly & Co. by 22.22%. The impact to his portfolio due to this purchase was 1.01%. His holdings were 209,000 shares as of May 31, 2011.

    Eli Lilly and Company discovers, develops, manufactures and sells products in one significant business segment -pharmaceutical products. Eli Lilly & Co. has a market cap of $43.02 billion; its shares were traded at around $37.16 with a P/E ratio of 7.8 and P/S ratio of 1.9. The dividend yield of Eli Lilly & Co. stocks is 5.3%. Eli Lilly & Co. had an annual average earnings growth of 1.3% over the past 10 years.  

  • Bruce Berkowitz Details His Thesis On BAC

    Bruce Berkowitz detailed his investing thesis on Bank of America (NYSE:BAC) in a speech given at AAII in June. He is confident with Bank of America and his other positions in AIG (NYSE:AIG) and MBIA (NYSE:MBI). As of March 31, Bruce Berkowitz’s firm Fairholme Capital Management owns more than 92 million share of Bank of America. His average cost is around $15 a share. He has lost one third of his investment on Bank of America.

    These are the excerpts from his speech at AAII. For the complete speech, click here.  

  • Fairholme Focused Income Fund Buys Telephone Companies and Big Pharmas: T, TEF, AZN, GSK, BMY, LLY

    Fairholme Focused Income Fund buys heavily into telephone companies and pharmaceuticals to generate yield for the fund. It bought into Telefonica S.A. (NYSE:TEF), Astrazeneca Plc (NYSE:AZN), Glaxosmithkline Plc (NYSE:GSK), Bristolmyers Squibb Co. (NYSE:BMY), Eli Lilly & Co. (NYSE:LLY), AT&T Inc. (NYSE:T), sells General Growth Properties Inc. (NYSE:GGP), Mercury General Corp. (NYSE:MCY) during the three months ended 02/28/2011, according to the most recent filings of his investment company. As of 02/28/2011, he owns 11 stocks with a total value of $112 million.

    As we discussed, Fairholme Focused Income Fund is the third portfolio we track for Bruce Berkowitz. The objective of this fund is to generate incomes. Therefore, it heavily invests in high dividend yield stocks. Compared with YTD loss of 2.3% at Fairholme Fund, the Focused Income Fund gained 4.93% in the first quarter of the year.  

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