Seeking Alpha

Berkowitz planning new big bets as Fairholme reopens

  • Last week's reopening of the Fairholme Fund just months after it was closed to new investors suggests Bruce Berkowitz has some big investment ideas today that he didn't have earlier this year. At the top of the possibilities list would be a doubling-down of his investments in Fannie Mae (FNMA.OB -3.5%) and Freddie Mac (FMCC.OB -3.4%). The preferred stock of the two make up more than 5% of Fairholme's current holdings.
  • Fairholme is among those suing to challenge Treasury's taking all of the GSE's profits.
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Comments (3)
  • harlizzle
    , contributor
    Comments (12) | Send Message
     
    i thought this would have led to a jump in the stock prices, but it seems to be performing poorly. what do you guys think will happen with the lawsuits?
    27 Aug 2013, 12:29 PM Reply Like
  • Energysystems
    , contributor
    Comments (1425) | Send Message
     
    ...so his "new" ideas were his old ones? Sounds like the trend of investors fleeing from Fairholme will continue. Assets under management at Fairholme went from 23B to 7B for a reason.
    27 Aug 2013, 12:38 PM Reply Like
  • Danielvincer
    , contributor
    Comments (155) | Send Message
     
    I don't think bruce would talk about the fmcc fnma purchase if he planned on buying more. I think he has some other ideas.
    28 Aug 2013, 10:10 PM Reply Like
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