Renowned investor Bruce Berkowitz recently disclosed his firm's portfolio updates for the second quarter of 2023, which ended on June 30, 2023. Berkowitz, known for his value-oriented investment approach, has a portfolio that contained 11 stocks with a total value of $1.32 billion. The top holdings were JOE (87.41%), EPD (8.84%), and BRK.B (1.71%).
Top Three Trades of the Quarter
The following were Berkowitz's top three trades of the quarter, which significantly impacted the equity portfolio.
St. Joe Co (NYSE:JOE)
Berkowitz reduced his investment in St. Joe Co (NYSE:JOE) by 430,500 shares, impacting the equity portfolio by 2.11%. During the quarter, the stock traded for an average price of $64.51. As of August 14, 2023, JOE's price was $61.71, with a market cap of $3.60 billion. The stock has returned 46.71% over the past year. GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 8 out of 10. In terms of valuation, JOE has a price-earnings ratio of 41.98, a price-book ratio of 5.42, a price-earnings-to-growth (PEG) ratio of 1.58, a EV-to-Ebitda ratio of 25.47, and a price-sales ratio of 11.26.
Commercial Metals Co (NYSE:CMC)
Berkowitz also reduced his investment in Commercial Metals Co (NYSE:CMC) by 1,144,100 shares, impacting the equity portfolio by 4.63%. During the quarter, the stock traded for an average price of $46.69. As of August 14, 2023, CMC's price was $56.01, with a market cap of $6.54 billion. The stock has returned 29.29% over the past year. GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 8 out of 10. In terms of valuation, CMC has a price-earnings ratio of 6.92, a price-book ratio of 1.63, a price-earnings-to-growth (PEG) ratio of 0.16, a EV-to-Ebitda ratio of 4.82, and a price-sales ratio of 0.73.
WR Berkley Corp (NYSE:WRB)
Berkowitz established a new position in WR Berkley Corp (NYSE:WRB), purchasing 131,200 shares, which now account for 0.59% of the equity portfolio. Shares traded for an average price of $59.02 during the quarter. As of August 14, 2023, WRB's price was $63.8, with a market cap of $16.43 billion. The stock has returned -1.96% over the past year. GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 7 out of 10. In terms of valuation, WRB has a price-earnings ratio of 14.02, a price-book ratio of 2.39, a price-earnings-to-growth (PEG) ratio of 1.07, a EV-to-Ebitda ratio of 9.98, and a price-sales ratio of 1.53.
In conclusion, Bruce Berkowitz (Trades, Portfolio)'s Q2 2023 portfolio update reveals a strategic approach to value investing, with significant changes in holdings and new positions established. These moves reflect Berkowitz's investment philosophy and provide valuable insights for value investors.
