Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.
Includes detailed analysis of Fairholme Fund's positions in JOE, FMCC, FNMA, IPMLF, SHLD, ITWG, VSTO, SPB, VST, T, C, SRG, ALLY, BAC, GS, WFC, CHK, HCCDZ, HCHC, OAK.
Fund performance was disappointing in the first half of the year mostly due to the decline in the preferred shares of Fannie Mae and Freddie Mac even though the enterprises’ businesses are stronger than ever.
Consistent with our value-oriented criteria, we initiated new investments in cash generative businesses at discounted prices.