Fairholme Fund
just reported its second quarter portfolio. The fund did not
trade much during the second quarter. It added slightly to
Orchard Supply, and sold Berkshire Hathaway and CIT group. The
fund had $7 billion under management as of May 31, which is a
drop of more than 60% since 15 months ago.
Bruce Berkowitz
is still confident and concentrated most of his bet on positions
like AIG, Sears, and Bank of America. The fund gained 24.7%
versus 9.5% for S&P 500 in the first 6 months. He wrote:
Our best idea remains AIG (
AIG
) common (35% of the Fund) with a reported book value of $57 per
share. There are few occasions when systemically important
franchises sell for half of book value and are profitable. This
is one of those times. AIG warrants held by the Fund (another 3%
of the Fund) provide the right to 21+ million shares at $45, or
maybe more shares at lower strike prices for the next 34 quarters
if dividends above $0.675 per trailing 12-month period are paid.
Bank of America (
BAC
) is the Fund's next largest financial holding (9% of the Fund)
affected by the great housing price collapse. The company's
reported book value is over $20 per share. We believe that
America's bank is returning to its retail roots (think of Wells
Fargo) with a $1 trillion deposit franchise and that bank profits
will skyrocket as legacy real estate loans burn-off.
Fairholme Fund
buys Orchard Supply Hardware Stores Corp, sells Berkshire
Hathaway Inc., Cit Group Inc. during the 3-months ended
05/31/2012, according to the most recent filings of his
investment company,
Fairholme Fund
. As of 05/31/2012, Fairholme Fund owns 15 stocks with a total
value of $7.5 billion. These are the details of the buys and
sells.
This is the sector weightings of his portfolio:
|
Financials
|
71.4% |
|
Warrants
|
27.5% |
|
Industrials
|
0.9% |
These are the top 5 holdings of Fairholme Fund
- American International Group, Inc. (
AIG
) - 81,327,425 shares, 37.8% of the total portfolio. Shares
reduced by 3.33%
- Sears Holdings Corporation (
SHLD
) - 14,212,673 shares, 11.2% of the total portfolio.
- (
AAIGF
) - 190,751,000 shares, 9.9% of the total portfolio. Shares
reduced by 36.88%
- Bank Of America Corp (
BAC
) - 81,607,015 shares, 9.6% of the total portfolio.
- CIT Group Inc. (
CIT
) - 13,597,029 shares, 7.4% of the total portfolio. Shares
reduced by 16.88%
Sold Out: Berkshire Hathaway Inc. (
BRK.A
)
Fairholme Fund sold out his holdings in Berkshire Hathaway Inc..
His sale prices were between $117434 and $123555, with an
estimated average price of $120707. Berkshire Hathaway Inc. is a
holding company owning subsidiaries engaged in a number of
diverse business activities. Berkshire Hathaway Inc. has a market
cap of $212.12 billion; its shares were traded at around $127789
with a P/E ratio of 16.1 and P/S ratio of 1.9. Berkshire Hathaway
Inc. had an annual average earnings growth of 17.5% over the past
10 years.
Added: Orchard Supply Hardware Stores Corp (
OSH
)
Fairholme Fund added to his holdings in Orchard Supply Hardware
Stores Corp by 0%. His purchase prices were between $17.23 and
$26, with an estimated average price of $20.95. The impact to his
portfolio due to this purchase was 0.16%. His holdings were
605,293 shares as of 05/31/2012. Orchard Supply Hardware Stores
Corporation operates full-service hardware stores focused on
homeowners with repair, maintenance and improvement needs in
California. Orchard Supply Hardware Stores Corp has a market cap
of $75 million; its shares were traded at around $15.72 with and
P/S ratio of 0.1.
Reduced: Cit Group Inc. (
CIT
)
Fairholme Fund reduced to his holdings in Cit Group Inc. by
16.88%. His sale prices were between $33.81 and $43.19, with an
estimated average price of $38.94. The impact to his portfolio
due to this sale was -1.5%. Fairholme Fund still held 13,597,029
shares as of 05/31/2012. CIT Group Inc. is a bank holding company
that provides financing and leasing capital for commercial
companies throughout the world. Cit Group Inc. has a market cap
of $7.54 billion; its shares were traded at around $37.99 with
and P/S ratio of 1.6.
Here is the complete portfolio of Fairholme Fund. Also check out
the Undervalued Stocks, Top Growth Companies, and High Yield
stocks of Fairholme Fund.About GuruFocus: GuruFocus.com tracks
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