Fairholme Capital Management was founded by Bruce Berkowitz in 1997 who was formerly a senior portfolio manager at Lehman Brothers and a managing director of Smith Barney. Berkowitz was named 2009 Domestic-Stock Fund Manager of the Year and Domestic-Stock Fund Manager of the Decade by Morningstar, Inc. Berkowitz has been a popular topic lately among investors wondering if his massive positions in financials (notably Bank of America (NYSE:BAC)) could spell disaster for his fund.
A look at his 13F filings over time is shown below (Contact us for the full reports):
click to enlarge
Bruce’s big bet going into Q2 is AIG Group (NYSE:AIG). Shares increased from 44M to 103M with a reported market value of $3BN as of June 30th.
Shares in Berkshire Hathaway (NYSE:BRK.A) increased from 7.8M to 9.4M with reported market value of $730M.
Shares in Morgan Stanley (NYSE:MS) were cut 69% to 11.9M cutting the reported market value from $1.06BN to $275M going into Q2.
A number of positions from last quarter were cut. The two biggest:
Cisco Systems (NASDAQ:CSCO) (a 4% position last quarter) was removed after just 1 quarter in the portfolio.
Spirit Aerosystems (NYSE:SPR) was finally completely removed from the portfolio after slowly being trimmed from 27M shares in Q4 2009.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.