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 such control of companies that they can control any one-year period or two-year period. I’ve not seen it done. There’s a reason Warren Buffett judges Berkshire Hathaway’s book value against the S&P 500. He doesn’t use Berkshire’s stock price.”

Berkowitz said he remains very high on beaten-down value plays like Sears, Bank of America, and AIG. Sears, he says, is worth far more than investors think because of the value of its inventory, and its real estate. And he talks about the impact Superstorm Sandy could have on AIG’s business.