Morningstar has a brief report on Bruce Berkowitz’s latest adventure into the disgraced financials. This time, he entered a position in American International Group (AIG, Financial).
Via Morningstar:
Berkowitz’s investment into AIG resembles what he did in 4Q09 when he took a large position in Citigroup. He was seen interviewed by Morningstar over the phone on his rational on Citigroup:
Via Morningstar:
- Berkowitz says Fairholme Capital owns more than 13 million of AIG's common shares, more than 20% of some tranches of the firm's convertible debt, as well as other AIG bonds.
- Berkowitz says AIG is ready to move on. He says the firm retains a valuable franchise, is resuscitating its cash flows, and has done a good job walling off its risks.
- Berkowitz says more than two years under government scrutiny have cleansed the company, leaving it solidly positioned.
- The situation is now clear enough to see how taxpayers get paid back by AIG, according to Berkowitz. He also sees the potential for a rights offering to help the firm move forward.
Berkowitz’s investment into AIG resembles what he did in 4Q09 when he took a large position in Citigroup. He was seen interviewed by Morningstar over the phone on his rational on Citigroup:
