Fairholme Fund (Trades, Portfolio), led by guru Bruce Berkowitz, sold shares in the following stocks during the fourth quarter.
The stake of Fannie Mae Pfd Shs Ser S (FNMAS) was reduced by 23.01% with an impact of -6.87% on the portfolio.
The Federal Home Loan Mortgage Corp 8 3/8 (FMCKJ)’s position was cut by 31.07% with an impact of -5.97% on the portfolio.
The holding of Fannie Mae Var Rate Non-Cum Pfd (FNMFN) was almost closed after a reduction of 85.19% and an impact of -1.63% on the portfolio.
The Federal Home Loan Mortgage Corp 5.57% (FMCKM)’s stake was trimmed by 78.25%. The transaction had an impact of -1.56% on the portfolio.
The guru closed his holding of Federal Home Loan Mortgage Corp Variab (FMCCM). The trade had an impact of -1.04% on the portfolio.
The guru reduced his stake in Fannie Mae Pfd Shs Ser P (FNMAH) by 69.54%, impacting the portfolio by -0.88%.
The fund reduced his holding of The St. Joe Co. (JOE) by 1.75%, impacting the portfolio by -0.55%.
The company operates residential real estate and commercial real estate properties and resorts. It has a market cap of $1.21 billion and an enterprise value of $1.14 billion.
GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity (ROE) of 3.76% and return on assets (ROA) of 2.40% are underperforming 65% of the companies in the Global Real Estate - General industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 1.34 is above the industry median of 0.35.
Bruce Berkowitz (Trades, Portfolio) is the largest shareholder of the company among the gurus with 41.8% of outstanding shares followed by Fairholme Fund (Trades, Portfolio) with 34.27%, Charles Brandes (Trades, Portfolio) with 2.76% and Chuck Royce (Trades, Portfolio) with 0.43%.
The stake of Sears Holdings Corp. (SHLD) was reduced by 6.63%. The trade had an impact of -0.54% on the portfolio.
Sears is a retailer that integrates digital and physical shopping experiences for consumers. It has a market cap of $252.89 billion and an enterprise value of $4.7 billion.
GuruFocus gives the company a profitability and growth rating of 2 out of 10. The ROE of -12.78% and ROA of -30.80% are underperforming 92% of the companies in the Global Department Stores industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.04 is below the industry median of 0.99.
The largest shareholder of the company among the gurus is ESL Partners LP with 59.54% of outstanding shares followed by Bruce Berkowitz with 19.79% and Edward Lampert (Trades, Portfolio) with 19.08%.
The Seritage Growth Properties Class A (SRG)’s position was cut by 1.75%. The transaction had an impact of -0.13% on the portfolio.
Seritage is a self-administered, self-managed REIT that operates in the real estate property business through its investment in Seritage Growth Properties LP. The company has a market cap of $2.29 billion and an enterprise value of $3.98 billion.
GuruFocus gives the company a profitability and growth rating of 5 out of 10. The ROE of -5.54% and ROA of -1.67% are underperforming 96% of the companies in the Global REIT - Retail industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.08 is above the industry median of 0.06.
Berkowitz is the largest shareholder of the company among the gurus with 6.72% of outstanding shares followed by Hotchkis & Wiley with 5.06%.
The guru reduced his stake in Fannie Mae Variable Rate NonCum (FNMAO) by 50.04%, impacting the portfolio by -0.09%.
The guru exited his Sears Canada Inc. (SCC.Canada) holding, impacting the portfolio by -0.06%.
The guru sold out his holding of Sears Hometown and Outlet Stores Inc. (SHOS). The trade had an impact of -0.04% on the portfolio.
The pharmaceutical company has a market cap of $52.22 million and an enterprise value of $157.43 million.
GuruFocus gives the company a profitability and growth rating of 4 out of 10. The ROE of -42.54% and ROA of -22.76% are underperforming 98% of the companies in the Global Department Stores industry. Financial strength is rated 5 out of 10. The cash-debt ratio of 0.12 is below the industry median of 0.99.
The largest shareholder of the company among the gurus is ESL Partners LP with 58.35% of outstanding shares followed by Lampert with 21.02%, Francis Chou (Trades, Portfolio) with 5.82% and Jim Simons (Trades, Portfolio) with 1.63%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
