On August 14, 2023, Fairholme Fund (Trades, Portfolio), managed by Bruce Berkowitz (Trades, Portfolio), reduced its stake in The St. Joe Co (JOE, Financial), a prominent real estate development and asset management company. This article provides an in-depth analysis of the transaction, the profiles of Fairholme Fund (Trades, Portfolio) and The St. Joe Co, and the performance of the traded stock. It also compares Fairholme Fund (Trades, Portfolio)'s position in The St. Joe Co with that of another guru, Mario Gabelli (Trades, Portfolio).
Details of the Transaction
Fairholme Fund (Trades, Portfolio) sold 136,000 shares of The St. Joe Co at a price of $61.71 per share. This transaction reduced the fund's position in the company by 0.66%, resulting in a total holding of 20,414,857 shares. Despite the reduction, The St. Joe Co still constitutes a significant 34.99% of Fairholme Fund (Trades, Portfolio)'s portfolio, valued at approximately $1.19 billion.
Profile of Fairholme Fund (Trades, Portfolio)
Fairholme Fund (Trades, Portfolio), a firm managed by Bruce Berkowitz (Trades, Portfolio), has a remarkable track record. In the 10-year period following its inception in 1999, the fund gained 253% while the S&P lost money. Berkowitz concentrates his investments in a relatively small number of companies, focusing on those with good management and cash flow. His investment philosophy is encapsulated in the motto: "Ignore the Crowd". The fund's top holdings include Imperial Metals Corp (TSX:III, Financial), Commercial Metals Co (CMC, Financial), Enterprise Products Partners LP (EPD, Financial), The St. Joe Co (JOE, Financial), and Federal Home Loan Mortgage Corp (FMCC, Financial). The firm's equity is valued at $1.06 billion, with a strong focus on the Real Estate and Energy sectors.
Profile of The St. Joe Co
The St. Joe Co, based in the USA, is a real estate development, asset management, and operating company. It operates in the Commercial, Hospitality, Other, and Residential segments. The company has a market capitalization of $3.58 billion and a PE ratio of 41.74. According to GuruFocus, the stock is fairly valued, with a GF Value of $65.72 and a Price to GF Value ratio of 0.93. The St. Joe Co's stock has a GF Score of 89/100, indicating good outperformance potential.
Performance of The St. Joe Co's Stock
Since its IPO in 1992, The St. Joe Co's stock has gained 511.16%. The stock has also performed well year-to-date, with a gain of 56.53%. The company has a Financial Strength rank of 5/10, a Profitability Rank of 8/10, and a Growth Rank of 9/10. Its GF Value Rank and Momentum Rank are both 5/10 and 9/10, respectively.
Other Gurus' Positions in The St. Joe Co
Another guru who holds a position in The St. Joe Co is Mario Gabelli (Trades, Portfolio). However, Fairholme Fund (Trades, Portfolio), managed by Fairholme Capital Management, holds the largest stake in the company.
Conclusion
The recent transaction by Fairholme Fund (Trades, Portfolio) has slightly reduced its stake in The St. Joe Co, but the company remains a significant part of the fund's portfolio. The St. Joe Co's strong performance and potential for outperformance, as indicated by its high GF Score, make it an attractive investment. However, as always, investors should conduct their own thorough research before making investment decisions.
