Fairholme Fund Manager Berkowitz Bets on Sears

Bruce Berkowitz, who was named mutual-fund manager of the decade in 2010, has seen his Fairholme Fund lose 89% of its assets from its 2011 peak due to poor performance—but he hopes to turn things around with a major bet on the battered Sears Holdings Corp. This according to an article in The Wall Street Journal. The Fairholme Fund has lost 12.9% so far this year compared to the 9% gain in the S&P 500,… Read More

Liquidity Concerns Increasing for Fairholme Fund

The Fairholme Fund, which was launched in 1999 by Bruce Berkowitz, has seen investors pull out more than $16 billion over the past six years due to poor performance, an exodus that is raising liquidity concerns. This according to a recent article in The Wall Street Journal. Morningstar estimates show the large-cap value fund has “shed assets every month since March 2011” and is now a “shadow of its former self,” according to the article–… Read More

Berkowitz Still Likes Those Unloved Financials

Bruce Berkowitz’s Fairholme fund got some bad news recently after a court ruling hit Fannie Mae and Freddie Mac hard. But over the long term, Berkowitz’s track record is impeccable, and in a recent interview with WealthTrack, he talked about the process that led him to go big into financial stocks amid the 2008-2009 financial crisis.

Berkowitz Expects AIG, BOA To Quadruple in 5-7 Years

Top fund manager Bruce Berkowitz says he believes financials like AIG and Bank of America remain the best value opportunities in the market right now, even though they jumped sharply in 2012. Berkowitz tells Bloomberg that he would buy more of BOA if he could, but mutual fund regulations prevent him from doing so. He thinks that as government-sponsored enterprises, like those that involve mortgages, run out, banks and insurers could have a “huge market”… Read More

Berkowitz’s Top Stocks

In a recent Fortune article, top fund manager Bruce Berkowitz discusses his fund’s struggles in 2011 and its bounce-back in 2012, as well as some of his favorite stocks in the market right now. “I think it’s fair,” Berkowitz said of criticism he received when his fund, which had been extremely successful over the long term, was hit hard in 2011. “What’s not fair is to believe that a manager or a businessperson is in… Read More

Berkowitz Still Going Against The Crowd On Financials

Top fund manager Bruce Berkowitz remains high on beaten-down financial stocks, saying that many have improving business trends and balance sheets and extremely cheap shares. Berkowitz tells WealthTrack’s Consuelo Mack that he started buying “systemically important companies” at huge bargains after the government recapitalized them, and after busines trends were recovering. Many were priced below liquidation value back then, he says — and they still are. But, he says, investors let fears keep them from believing… Read More

Berkowitz’s Checklist and Lessons

After struggling in 2011, Morningstar Fund Manager of the Decade Bruce Berkowitz is rebounding strong in 2012, with his Fairholme fund in the top 1% of funds in its category year-to-date, according to Morningstar.com. And at a recent Columbia Investment Management Association conference, Berkowitz laid out his checklist for analyzing a company and its stock, and Market Folly offered a summary: 1. Can you kill it? Is there adult supervision at the company? 2. Is the… Read More

Berkowitz Undeterred

Bruce Berkowitz, who was one of Morningstar’s Fund Managers of the Decade in the 2000s but saw his flagship portfolio hit very hard in 2011, is sticking to his guns. “Improving book value levels and ratios show companies recovering from tough times, prepared for uncertainty, and capable of profits without excess leverage,” Berkowitz writes in Fairholme Capital’s year-end manager’s report (click here for a PDF copy). “The Fund’s performance last year makes little sense in… Read More

Berkowitz: For Banks, Focus on Today’s Data — Not Unfounded Future Fears

Bruce Berkowitz, who in 2010 was named one of Morningstar’s Fund Managers of the Decade but has been hit hard in the past year, says he continues to be high on unloved financial stocks that have been dragging his portfolio down. Berkowitz tells WealthTrack’s Consuelo Mack that all of the negativity about financials has driven many of their stock prices down to incredibly attractive levels. “The negatives are all uncertainty about the future. And what… Read More