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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Bruce Berkowitz Comments on AIG

He then joined consulting firm Strategic Planning Institute. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. The government had a pretty good record selling its shares in Citi without hurting the stock price. Subscribe to ValueWalk Newsletter. 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. All Rights Reserved This copy is for your personal, non-commercial use only.

By Scott Cendrowski May 10, Shorts, cash positions, foreign investments and other assets are not included. It is important to note that these filings are due 45 days after the quarter end date. The stock has been pummeled recently after disappointing earning results and an unanticipated rise in expected insurance claims. Sears Holdings Corporation Nasdaq: This helped him outperform his peers in Barron’s Bill Alpert wrote, back inthat one oddball hire in particular was partly to blame for lackluster performance in recent years.


He founded Fairholme Capital in to manage a hedge fund. In he moved to Lehman Brothers and then relocated back to New York with the same firm. Qualifying assets include long positions in U.

He moved to London in to join Merrill Lynch. If the 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 beerkowitz its intrinsic value rather than a constant focus on the stock overhang. In he moved to Smith Barney Investment Advisors where he was a managing director.

We respect your privacy no spam ever. You can get the latest data on the holdings discussed below at the Fairholme Capital page. Check out our H2 hedge fund letters here.

Berkowitz’s AIG Sale To Result In Huge Taxable Distribution – Barron’s

Send me ocassional third party offers Yes No. SHLD for many years, having first invested in He built a large position in when the US Treasury owned 92 percent of the company. In a interviewBerkowitz said.

This copy is for your personal, non-commercial use only. The year-old fund manager looked especially smart last year while amassing 40 million shares of the insurance giant. The Ideas section of finbox. Instead of the U. In other words, it’s time for fund owners to shoulder the cost of Faireholme’s successful bet on a risky company. But the plan fizzled.


For non-personal use or to order multiple copies, please contact Dow Jones Reprints at or visit www. Berkowitz graduated from the University of Massachusetts Amherst in I mean, if you take a look now at the amount of the government shares, the government is going to do great.

Funds are required to distribute those gains to their shareholders, who, in turn, must pay taxes on them.

The American International Group Inc. He expected the Treasury stake to be sold at book value, but it was ultimately sold back to the market at a deep discount.

We’ve detected you are on Internet Explorer. He also uses relatively high cash holdings to limit volatility.

In he set up Fairholme Funds, which burce three mutual funds and acted as an investment advisor to long-only institutional funds. By October he had stepped down from the board and became highly critical of the company. 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.

Not Just Sears Holdings Corp (SHLD) – The Rise And Fall Of Bruce Berkowitz’s Fairholme Capital

It currently owns 1. Thank you This article has been sent to. Do you think that will happen with AIG?