This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

Bruce Berkowitz's New Contrarian Bets

Stocks in this article: CSCO GGP BAM TEF LLY BMY GSIC

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.



NEW YORK ( InsiderMonkey) -- Bruce Berkowitz is a pretty impressive mutual fund manager. We analyzed Berkowitz's returns using Carhart's four-factor model and determined that Berkowitz had an average annual alpha of three percentage points per year. Usually, mutual funds try to extract every drop of alpha in their successful strategies by expanding their assets and buying index stocks. They keep making money through management fees but their clients couldn't enjoy any alpha for long periods of time.

Berkowitz is different, and that's why we follow his moves.

Berkowitz filed his 13F form with the SEC this week and disclosed three new positions, one of which is truly new. Fairholme initiated a $614 million position in Cisco (CSCO - Get Report) during the first quarter. Fairholme also sold its entire $1.75 billion General Growth Properties (GGP - Get Report) stake and initiated an $892 million Brookfield Asset Management (BAM - Get Report) position. Unfortunately, Fairholme lost nearly $1 billion because of the decline in AIG (AIG) shares. This decline prompted Berkowitz to spend an additional $264 million on AIG warrants.

Berkowitz also initiated five other new but very small positions in Telefonica (TEF - Get Report), Eli Lilly (LLY - Get Report), Bristol Myers (BMY), GlaxoSmithKline (GSK) and AstraZeneca (AZN). Fairholme sold out its stake in Humana (HUM), Wellcare Health Plans (WCG) and General Electric (GE).

Several hedge funds got rid of their CSCO bets during the first quarter as the company kept disappointing. David Tepper's Appaloosa , Larry Robbins' Glenview Capital, and Alan Fournier's Pennant Capital sold their entire CSCO stakes. Phill Gross' Adage reduced its holdings by nearly 10%. On the opposite side of the trade were Eddie Lampert and Whitney Tilson.

The table below provides a summary of Berkowitz's portfolio activity during the first quarter:

This was originally published on Insider Monkey.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

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