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, the article reports. It adds that Berkowitz is “unapologetic” for the poor returns, saying that “he always has promised his investors ultra-concentrated, often contrarian bets […]

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– which cites comments by Morningstar analyst Kevin McDevitt concerning the fund’s increased liquidity risk in the wake of steady outflows and forced sell-offs. McDevitt’s concern, […]

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” of loans to take on, enhancing profits. In a separate video, Berkowitz says he thinks shares of financials like AIG and BOA will quadruple over […]