This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

6 Investors Win 10-Year Performance Records

Stocks in this article: AIG BAC C G FCX CMP NWSA

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) 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) and Citigroup (C), both at 5.3%.

2 of 7

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs