Bruce Berkowitz’s portfolio for Q3
Source: http://hedgejournals.com/2012/12/03/id/931/bruce-berkowitzs-portfolio-for-q3.html
The Fairholme U.S. stock portfolio of Bruce Berkowitz has increased from 6.78B dollars to around 7B this Q3. It, however, had decreased by almost 11 per cent in Q2 in comparison to its increase of 27 per cent in 2012’s Q1. The positions in the portfolio went up by 2 – from 19 to 21. Despite this, the five largest positions account for more than 80 per cent of the portfolio’s overall value. Moreover, the portfolio continues to be concentrated on its largest position American International Group, which represents 45 per cent of it.
General Motors and Lincoln National are minute stakes and together account for less than 0.1 per cent of the portfolio. Despite the fact that these positions are small, Bruce Berkowitz is notorious for being bullish on such warrants – holding significant positions in warrants which include Bank Of America, Wells Fargo, American International Group, Hartford Financial Services and JP Morgan. The WTS of Lincoln International (10.715) is trading at 15 dollars and General Motors’ WTS (18.33) is trading at 9.25 dollars. Both these warrants have an expiry date – July 10, 2019.
The third largest position which occupies Bruce’s portfolio is Bank of America and BAC. This position was occupied in 2010 and it was kept steady since then. BAC traded at 7.04 – 9.55 dollars during the quarter and now currently trades at 9 dollars.
Berkshire Hathaway is another long-term holding in Bruce’s portfolio. In Q2 the stake was reduced to more than 80 per cent. This quarter (Q3), however, the stake increased at prices varying between 82.54 – 89.54 dollars through purchasing BRK.B shares. Its stock now trades at 85.51 dollars accounting for 1 per cent of the portfolio.
Sears Holdings Corporate is a 13.4 per cent stake which was established in 2007. In this Q3, the stake was increased at prices which varied between 48.36- 62 dollars. The stock trades at 58.42 dollars. The price of the current stock is way below Bruce’s average purchase price.
JP Morgan, Wells Fargo and Hartford Financial Group are small stakes but were increased this Q3. The warrant of Wells Fargo is 0.2 per cent position and the other 2 position are even smaller. WFC now trades at 31.43 dollars. JPM and the HIG trade at 10.05 and 11.87 dollars, respectively.
CIT Group accounts for 7 per cent of Bruce Berkowitz’s portfolio. The position increased by more than 30 per cent in 2010. During Q2, the position reduced by almost 25 per cent at prices varying between 32.57 – 41.60 dollars. In Q3, the stake reduced further by another 25 per cent at prices varying between 34.20 – 41.38 dollars. The stock now trades at 36.12 dollars.
Jeffries Group is a position firs purchased in 2011’s Q2. It accounts for 0.5 per cent of the portfolio. Its stake was doubled in 2012’s Q2 at prices varying between 13.64 – 19.49 dollars. In Q3, the stake was reduced by around 40 per cent at prices varying between 11.77 – 16.03 dollars.
American International Group, Citigroup, Orchard Supply Hardware, St Joe Companies and MBIA Incorporated are small positions which were reduced in Q3 and do not signify a clear bias.
View the full Fairholme U.S. stock portfolio for Q3 here.
