This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

6 Investors Win 10-Year Performance Records

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Fairholme (FAIRX) fund, with $18 billion in assets, has a return of 21% this year and a 12% average annual return over the past 10 years. Its portfolio includes 12 bonds and 22 stocks, with 51% of fund assets in the top 10 holdings.

The financial-services sector is its main focus, with a 74% weighting.

In the reporting period that ended Aug. 31, the fund made the insurance conglomerate AIG (AIG - Get Report) a new holding and top position, at 7% of the fund's assets, by buying 29.3 million shares.

That stake has grown significantly since then, as Fairholme Capital, the parent of Fairholme fund, reported two weeks ago that it now holds almost 42 million shares, or 30% of AIG's stock that isn't owned by the U.S. government, making it the largest private investor in the firm.

AIG is up 75% this year, bringing its three-year performance to a loss of 95%. It traded recently at $54.13.

Bruce Berkowitz, who started the Fairholme fund in December 1999 and has been its chief manager since then, appears confident the worst is over at the troubled company. AIG threw out everything but the kitchen sink in its recent third quarter, writing down the value of all sorts of assets, including several businesses that it plans to sell, which resulted in a loss of $2.4 billion for the quarter. It also recently announced plans to recapitalize and pay down its government bailout loan.

Fairholme also raised its stake in investment-banking firm Morgan Stanley (MS) by 28 million shares, to just over 30 million, or 5.2% of the fund, in its most recent reporting period.

Also among the fund's top 10 holdings are the bankers: Goldman Sachs (GS), at 5.4%, and Bank of America (BAC - Get Report) and Citigroup (C - Get Report), both at 5.3%.
2 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AIG $54.62 -2.40%
BAC $14.04 -2.30%
C $44.25 -2.90%
CMP $75.03 0.25%
FCX $11.74 -2.20%


Chart of I:DJI
DOW 17,657.26 -93.65 -0.53%
S&P 500 2,050.44 -12.93 -0.63%
NASDAQ 4,727.6560 -35.5680 -0.75%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs