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Holly LaFon
Holly LaFon
Articles (7844) 

Berkowitz Drops Spirit Aerosystems, Reduces RRR and FUR

July 12, 2011 | About:
Bruce Berkowitz sold out his 10.9 million shares of Spirit Aerosystems Holdings Inc. (NYSE:SPR) at an average price of $22, according his most recent 13G filings. Miami-based Bruce Berkowitz is widely considered a master mutual fund manager, but his $20 billion Fairholme Fund is down 9% year to date, compared to a gain of 7.6% for the S&P.

Spirit Aerosystems is the leading supplier of aerostructures to Boeing and Airbus. It lost $163 million in 2010 and has lost money despite growing revenue every year since 2006. The company expects only a modest revenue increase for the full year 2011 in the $4.5 - $4.7 billion range. Multiple factors could drag on revenues, however, including the state of the business jet market and the company’s ability to meet forecast production levels, among other things.

The 2010 earnings report released on May 5 depressed the stock significantly. It is down 0.62% year to date despite big gains in the first half of the year.

Berkowitz also reduced his positions in RSC Holdings Inc. and Winthrop Realty Trust (NYSE:FUR). He eliminated 94% of his 11.9 million shares of equipment rental service in RSC Holdings Inc. (NASDAQ:RRR) in June and has reduced his position multiple times since the fourth quarter 2010. The stock is up 20.6% year to date. He trimmed his holding of 1.6 million shares of Winthrop Realty trust by 18.32% in July, which is down 6.25% year to date.

Rating: 3.6/5 (11 votes)


Paulwitt - 6 years ago    Report SPAM
The Fairholme Allocation fund (FAAFX) looks interesting. With 210 million in assets and a large cash position it almost looks like a trading account. Nice!

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