In Bruce Berkowitz of the Fairholme Fund put 18% of his portfolio into AIG. Investors should have been paying attention as it subsequently. FORTUNE — With AIG stock cratering nearly 50% this year, all eyes have turned to investor Bruce Berkowitz, AIG’s largest private shareholder. Bruce Berkowitz (Trades, Portfolio): As we have written in all of our letters, we bought AIG at substantial discount to tangible book value.
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The American International Group Inc. Berkowitz was mum on AIG AIG this year until yesterday, when the Wall Street Journal first reported that he took his lumps and told his investors in a conference call that he had made a critical error.
Berkowitz’s AIG Sale To Result In Huge Taxable Distribution – Barron’s
Here’s an interview Barron’s did with Berkowitz when he was at the top of his game. Sears Holdings Corporation Nasdaq: We’ve detected you are on Internet Explorer. We respect your privacy no spam ever. He then joined consulting firm Strategic Planning Institute. He also uses relatively high cash holdings to limit volatility. The stock has been pummeled recently after disappointing earning results and an unanticipated rise in expected insurance claims.
In a interviewBerkowitz said. I mean, if you take a look now at the amount of the government shares, the government is going to do great. Bruce Berkowitz is the founder and president of Fairholme Funds and a well-known value investor. You can get the latest data on the holdings discussed below at the Fairholme Capital page.
Berkowitz and Fairholme Capital Management bolted from American International Group AIG in the third quartera move that will hand investors in the firm’s flagship mutual fund a mammoth tax distribution. All Rights Reserved This copy is for your personal, non-commercial use only.
Bruce Berkowitz Comments on AIG
Cashflow is King Berkowitz is a contrarian investor and invests in companies with reliable cashflows that are trading at attractive levels relative to those cashflows. The government had a pretty good record selling its shares in Citi without hurting the stock price.
SHLD for many years, having first bbruce in In he moved to Smith Barney Investment Advisors where he was a managing director. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http: In other words, it’s time for fund owners to berkowittz the cost of Faireholme’s successful bet on a risky company. Qualifying assets include long positions in U.
By Scott Cendrowski May 10, Berkowitz is a contrarian investor and invests in companies with reliable cashflows that are trading at attractive levels relative to those cashflows.
Not Just Sears Holdings Corp (SHLD) – The Rise And Fall Of Bruce Berkowitz’s Fairholme Capital
He, therefore, tends to hold highly concentrated portfolios — in his positions in Fannie Mae and Freddie Mac made up 36 percent of the fund. Thank you This article has been sent to. On the conference call with investors, Berkowitz ended his prepared remarks on Brucd with a curious quote attributable to two value-investing luminaries. Berkowitz graduated from the University of Massachusetts Amherst in Article by Brian Dentino, Finbox.
Over the past 15 years, it’s on the top one percentile of all large-cap growth funds, according to Morningstar.
If berkowizt marketplace understands that the Treasury is not going to be forced to sell its position at a poor price, then the value of the company will start to be judged based upon its intrinsic value rather than a constant focus on the stock overhang.
Do you think that will happen with AIG? It became apparent last year that the government would begin unloading its stake in the first half of Subscribe to ValueWalk Newsletter.
This strategy worked well in the mid s when he held outsize positions in energy stocks, but has hurt performance since then. He is a strong believer in business cyclesand looks for companies that are out of favor due to the current business cycle.
Sig list value of bfuce holdings is down Why he turned out to be wrong on the U. While AIG paid off handsomely, the performance of Berkowitz’s fund has been, shall we say, mercurial. Berkowitz bets on the jockey as much as on the horse; he looks for companies that are built to survive in any environment with strong management. He often sticks with specific stocks for very long periods, something that has also hurt performance.
Firstly, he has avoided the technology sector which is where most of the index gains have accrued. Instead of the U. He founded Fairholme Capital in to manage a hedge fund. AIG is taking to the road this week to entice prospective investors.