Tuesday, February 3, 2009

Fairholme Funds (FAIRX) 2008 Report

Posted by TraderMark at 6:00 AM TweetThis
Courtesy of Todd Sullivan, below is Bruce Berkowitz's Fairholme Fund Annual Report. FAIRX had a tough year but this is one of the better large cap "value" funds who generally runs a very conservative policy; but does have very concentrated positions. And unlike (sadly) the majority of fund managers he has a large stake of his own money in the fund. Frankly at $7B+ in assets I don't know how one could manage in this type of environment.

His top position, Pfizer (PFE) makes up 18% of the portfolio.

Making up the rest of the top 10 are: Sears Holdings (SHLD), Forest Labs (FRX), Canadian Natural Resources (CNQ),Wellpoint (WLP), Boeing (BA), Northrop Grumman (NOC), United Health (UNH), The St Joe (JOE), and Humana (HUM)

Recent removals from top 10 include: Leucadia (LUK), Berkshire Hathaway (BRK.A), DISH Network (DISH), Mohawk Industries (MHK),

Mr. Berkowitz is hiding out in the same 2 themes we've identified for 2009: defense and healthcare.... safest bets in a relative sense; although he lives in large cap value world, and I'm more of a small to medium growth player.

Web Pages 4 through 9 of the document below are of most interest to peruse.

2008ar

Posted by TraderMark at 6:00 AM Comments (2) | Edit This Post | Create A New Post

2 comments:

NW said...

I like his investment in sub-prime auto finance company AmeriCredit. I'd like to think people may foreclose their homes but they still need their cars. Most towns in US have very poor public transport systems. And sooner or later your old car will die out.

And considering that Cummings and Wheeler from Leucadia and Bruce Berkowitz are the directors of ACF, makes me feel ACF will survive in the long term.

February 3, 2009 10:29 AM  
TraderMark said...

He owns both the equity and some debt if you notice. The stock has been in free fall but maybe is forming a bottom.

February 3, 2009 11:06 AM  

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