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Fairholme's Bruce Berkowitz Announces New Holding Sears Canada and Increase to Leucadia
2/1/2013 5:43:00 PM
Famed mutual fund manager
seems satisfied with his
)'s positioning - he made few adjustments in the fourth quarter.
He made headlines in 2009 and 2010 for weighting his portfolio
heavily in troubled financials, whose recovery delayed, leaving
him with a year of unprecedented bad performance. In 2011, he
lost 32.42%, compared to a modest gain for the S&P index.
TSX:SCC data by GuruFocus.com
Add: Leucadia National Corporation ( LUK )
Berkowitz increased his position in Leucadia National Corp. by 0.35%, or 42,700 shares with an average cost of $23. After the purchase, he owns a total of 12,229,050 shares of the company, or 5% of shares outstanding.
Leucadia in November came within a dollar of its 52-week low share price.
It is a holding company with subsidiaries that span the range from beef processing to oil and gas drilling. Additionally, in the third quarter of 2012 it acquired all of Jefferies Inc. ( JEF ) after owning an interest for years, and eliminated its holding of Mueller Industries Inc. ( MLI ).
Leucadia's revenue has been growing since 2007. In 2011, it reached $1.57 billion. Most years of the past decade the company was profitable, with the exception of a $2.5 billion loss in 2008. Cash flow is less predictable, with only three years of positive generation since 2002.
Approximately $1.48 billion in cash resides on Leucadia's balance sheet. And, wary of leverage, it carries $1.25 billion in long-term liabilities and debt.
Helming Leucadia is GuruFocus Guru Ian Cumming, who wrote in his 2011 annual letter that, though cautious, his team is "enthusiastic about the future of our broad array of operating businesses and investments and have our eyes open for additional acquisitions."
Cumming also noted the lack of correlation between its book value and share price growth: Though both have recovered from their Great Recession troughs, the share price has a ways to go to return to pre-recession levels, he said.
Currently, the P/E of Leucadia is 11.7, P/B is 1 and P/S is 0.89.
LUK data by GuruFocus.com
See Bruce Berkowitz's other fourth quarter moves and holding history in his portfolio here. Also check out the undervalued stocks, top growth companies and high yield stocks of Bruce Berkowitz.About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .