Insights into the Fairholme Fund (Trades, Portfolio)'s Latest Investment Moves
Bruce Berkowitz (Trades, Portfolio), the esteemed founder and Managing Member of the Fairholme Fund (Trades, Portfolio), is renowned for his focused investment approach, drawing inspiration from Benjamin Graham's "The Intelligent Investor." Berkowitz's strategy is to invest in a select number of undervalued companies with exceptional management and the potential for free cash generation. His latest 13F filing for the third quarter of 2023 reveals strategic additions, increases, and reductions in his portfolio, offering valuable insights to value investors.
New Additions to the Portfolio
Bruce Berkowitz (Trades, Portfolio) has expanded his portfolio with two new stocks in the third quarter:
- Bank OZK (OZK, Financial) is the standout addition with 147,500 shares, making up 0.39% of the portfolio and valued at $5.47 million.
- Home BancShares Inc (HOMB, Financial) follows, comprising 103,400 shares, which is approximately 0.15% of the portfolio, with a total value of $2.17 million.
Increased Stakes in Existing Holdings
Berkowitz has also bolstered his position in one particular stock:
- Enterprise Products Partners LP (EPD, Financial) saw an addition of 651,000 shares, bringing the total to 5,064,200 shares. This represents a significant 14.75% increase in share count and a 1.27% impact on the current portfolio, valued at $138.61 million.
Complete Exits from Certain Holdings
The third quarter also saw Berkowitz exit five positions entirely:
- Commercial Metals Co (CMC, Financial) was sold off completely, with 128,800 shares liquidated, impacting the portfolio by -0.52%.
- Energy Transfer LP (ET, Financial) was another full exit, with all 268,700 shares sold, resulting in a -0.26% portfolio impact.
Significant Reductions in Key Positions
Noteworthy reductions were made in four stocks, with the most significant being:
- The St. Joe Co (JOE, Financial) was reduced by 1,068,700 shares, leading to a -4.49% decrease in shares and a -3.93% impact on the portfolio. The stock traded at an average price of $57.76 during the quarter and has seen a -15.64% return over the past three months and a 35.58% year-to-date return.
- Berkshire Hathaway Inc (BRK.B, Financial) was trimmed by 14,647 shares, marking a -22.22% reduction in shares and a -0.38% impact on the portfolio. The stock's average trading price was $354.77 for the quarter, with a -1.18% return over the past three months and a 14.68% year-to-date return.
Portfolio Overview and Sector Concentration
As of the third quarter of 2023, Bruce Berkowitz (Trades, Portfolio)'s portfolio is composed of 8 stocks, with the top holdings being 87.69% in The St. Joe Co (JOE), 9.85% in Enterprise Products Partners LP (EPD, Financial), 1.28% in Berkshire Hathaway Inc (BRK.B), 0.58% in WR Berkley Corp (WRB, Financial), and 0.39% in Bank OZK (OZK, Financial). The investments are primarily concentrated in four industries: Real Estate, Energy, Financial Services, and Technology.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
