The Fairholme Fund have bounced back nicely in 2009, showing a 30% gain for the year. Quick summary follows but you can view Berkowitz's portfolio moves in this spreadsheet.
- Their new positions seem to indicate that Berkowitz has changed his mind regarding some lukewarm comments about Berkshire Hathaway's (NYSE:BRK.A) low growth potential a while back. He added about $150M to BRK.A and BRK.B positions. Fairholme's other notable new position is yet another ode to the equipment rental industry, RSC Holdings (NYSE:RRR-OLD). They already have positions on industry peers, United Rentals (NYSE:URI) and Hertz Global Holdings (NYSE:HTZ). Berkowitz has mentioned his attraction to the industry's counter-cyclical free cash flows on numerous occasions.
- The only noteworthy divestiture was Canadian Natural Resources (NYSE:CNQ). Berkowitz made a great sell call on the energy space near last year's peak (which I should have heeded!) and continues to avoid the space.
- Sizable accumulations during the quarter included the aforementioned HTZ, Humana (NYSE:HUM), Spirit Aerosystems (NYSE:SPR) and St Joe (NYSE:JOE). HUM and SPR seem to be company-specific plays since the fund sold sizable chunks of related players like Boeing (NYSE:BA), Northrop Grumman (NYSE:NOC), Wellpoint (WLP) and UnitedHealth Group (NYSEARCA:UNG). As for JOE, Berkowitz has been a long-time (and long-term) bull on its play in Florida land development and continues to stand by that view with conviction.
- Fairholme decided to book the quick gain on American Express (NYSE:AXP), reducing that position by over 70% as the stock rose.
Mohnish Pabrai's fund is no longer tracked in the pages of Barron's but I would guess his funds are also rebounding better than the broader market. He held his hand for the most part during the quarter as shown in this spreadsheet of Pabrai's holdings.
- Pabrai added two new positions: Terex Corporation (NYSE:TEX) and Brookfield Properties (NYSE:BPO). Both are fairly contrarian plays. Terex has a big debt load in a tough credit market while Brookfield is a large player in the commercial real estate market, where analysts are waiting with baited breath for a market implosion.
- Other than booking his profits in Sears (NASDAQ:SHLD), no other big moves on the sell side.
- Pabrai added 50% to his Fairfax Financial Holdings (FFH) position.
Robert Rodriguez's 13F filing encompasses several funds and is rather long so readers can best examine FPA's Q2 2009 portfolio moves in this spreadsheet. Rodriguez announced an imminent pending sabbatical from the money management business and at that time, I may stop following FPA but for now, the only move that really caught my eye was the firm doubling down on its energy positions, with big raises placed on Chevron (NYSE:CVX), Total (NYSE:TOT) and ConocoPhillips (NYSE:COP).
You can view other managers' 13F holdings spreadsheets here.
- Bruce Berkowitz Q2 2009 13F Holdings Spreadsheet
- Mohnish Pabrai Q2 2009 13F Holdings Spreadsheet
- Robert Rodriguez Q2 2009 13F Holdings Spreadsheet