Bruce Berkowitz, David Einhorn Q4 2009 Portfolio Tracking

by: Davy Bui

Bruce Berkowitz is a respected value investor who helms Fairholme Capital, a firm with an enviable track record over the last decade or so. You can view their holdings in spreadsheet format below. Highlights include the following:

  • Less than two years after dismissing Berkshire Hathaway (BRK.A, BRK.B) as a company with its best years in the rear-view mirror, Berkowitz has moved back into Berkshire stock in a big way, adding substantially to A and B share holdings as well as moving into the Burlington Northern Santa Fe (BNI) transaction. It's unclear if Fairholme moved into BNI before Buffett offered to buy the company but he could wind up holding even more Berkshire stock.
  • While he may be known as a value investor, Berkowitz's activities can sometimes resemble sector rotation. The precient moves out of the energy space a few years back and into the healthcare space more recently stand out in my mind. This quarter's activity could be construed as a big endorsement of financials with Fairholme building big stakes in CIT Group (CIT -- joining Seth Klarman among others), Citigroup (NYSE:C) and Regions Financial (NYSE:RF). Berkowitz's track record suggests that the financial sector's woes are behind them.
  • The biggest sell move was a near-total drawdown of Fairholme's Pfizer (NYSE:PFE) stake. The sudden turnabout on this stock along with the Berkshire flip mentioned above suggests a possible lack of conviction but then again, if the investment thesis changes, one must act.
  • Berkowitz seems to be handicapping the equipment rentals space, favoring RSC Holdings (NYSE:RRR-OLD) and Hertz Global (NYSE:HTZ) over competitor, United Rentals (NYSE:URI).

David Einhorn, sometimes-poker-player and notorious short-seller, runs Greenlight Capital. Their long list of holdings is best viewed in spreadsheet form. To summarize:

  • Einhorn's move into CIT Group (NYSE:CIT) makes that stock a near-consensus among guru value investors. The other big addition to the Greenlight portfolio was Boston Scientific (NYSE:BSX).
  • Other than selling most of the Barrick Gold (NYSE:ABX), Patterson UTI Energy (NASDAQ:PTEN) and Teradata (NYSE:TDC) positions, no big divestitures for Greenlight this quarter.

View both managers' holdings in spreadsheet form:

Other managers' 13F-HR spreadsheets are available here.

Disclosure: No positions