Bruce Berkowitz’s portfolio

Bruce Berkowitz

The eminent guru and founder of the Fairholme Fund Bruce Berkowitz lost 32 per cent of the fund 2 years ago but he has managed to get back at the top with the help of his good performance in 2012.

With his bets on the financial giants Bank of America, Citigroup and American International Group Inc. the Fairholme Fund is again on the top once again. Berkowitz, however, buys at a discount.

He has also commented on his poor 2011 performance in which the fund lost almost 2/3 of its assets. He says that things could have gone even worse. Bruce Berkowitz has packed sixty per cent of his assets into 4 holdings: Sears Holding, AIG and General Growth Property and Bank of America. AIG is around 42.30 per cent of his portfolio weighted 68.5 per cent for the financial services sector.

By the summer of 2012, Bruce’s assets had almost recovered. Moreover, it has been announced that the Fairholme Fund had more than doubled market and it had also returned 35.8 per cent.

Bruce Berkowitz has recently written that his fund still focuses on quantity ideas which include warrants on common stock of various companies which are affected by residential real estate markets.

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