We continue our look at various money managers' portfolios with Bruce Berkowitz of the Fairholme Fund. Notable changes include the following:
Fairholme continues its thematic investing, opening or adding to bullish positions in defense and health insurers. New investments include Humana (NYSE:HUM) and General Dynamics (NYSE:GD), which complement existing stakes in Boeing (NYSE:BA), Northrup Grumman (NYSE:NOC), Spirit Aerosystems (NYSE:SPR), Wellpoint (WLP) and Wellcare (NYSE:WCG).
In a continuing theme among the value investors I track, Berkowitz is sticking a toe into financials/asset managers with new positions in American Express (NYSE:AXP), Jefferies Group (JEF) and Winthrop Realty Trust (NYSE:FUR). As the economic and credit crisis drags on, money managers are starting to sift through the rubble. Time will tell if they're early yet.
Notable divestments included Mohawk Industries (NYSE:MHK), Berkshire Hathaway (NYSE:BRK.A) and Dish Network (NASDAQ:DISH). Berkowitz's admiration for Warren Buffett is well-known so his sell-off of Berkshire probably isn't any indication of his stance on the stock. Mohawk is a company that's been on my watchlist for some time, though I am more interested in the 9% YTM bonds than the stock.
After adding no new positions in Q4 2008, Mohnish Pabrai's portfolio added eight new positions this quarter. In his most recent partners' letter, Pabrai announced a change in his investment strategy, lowering his targeted stake sizes in hopes of lowering the massive volatility he's experienced the last two years.
Pabrai's new positions can be summed up as a bunch of commodities with a hint of financials. New mining stakes include Horsehead Holding Corp (NASDAQ:ZINC), Teck Cominco (NYSE:TCK) and indirectly, Leucadia National (NYSE:LUK). He also moved into the agriculture space with Potash (NYSE:POT) and Cresud SA (NASDAQ:CRESY). He also added a good-sized position in Goldman Sachs (NYSE:GS), which received a well-publicized capital boost from Pabrai's acknowledged idol, Warren Buffett. Pabrai completely divested his WCG position and massively reduced stakes in Buffett's Berkshire, Cryptologic (NASDAQ:CRYP), CompuCredit (CCRT) and Fairfax Financial (FFH).
Bob Rodriguez from FPA has been garnering some favorable publicity due to his market-beating performance last year with FPA New Income Fund. Because FPA's filing encompasses several funds' holdings, it is probably best for readers to look at the spreadsheet view. I made the following observations:
FPA's new holdings seemed weighted toward the energy sector, with stakes in North American land drillers BJ Services (BJS) and Helmerich Payne (NYSE:HP), offshore drillers Transocean (NYSE:RIG) and Pride International (NYSE:PDE) and exploration companies like French major Total (NYSE:TOT) and Newfield Exploration (NYSE:NFX).
Keep in mind that Rodriguez's market outperformance last year pertained to his fixed-income portfolio. The equity fund was down roughly in-line with the broader market.
Bruce Berkowitz Q4 2008 13F Holdings Spreadsheet
Robert Rodriguez Q4 2008 13F Holdings Spreadsheet
Mohnish Pabrai Q4 2008 13F Holdings Spreadsheet
You can also find other Q4 13F filing spreadsheets here.
Keep in mind that I use a perl script to parse these filings into the spreadsheet format and some information may be misrepresented or otherwise incomplete.