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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 (
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.
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 - Get Report),
AstraZeneca(AZN). Fairholme sold out its stake in
Wellcare Health Plans(WCG) and
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,
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
The table below provides a summary of Berkowitz's portfolio activity during the first quarter:
This was originally published on Insider Monkey.