(Fairholme story updated to include Berkshire Hathaway stake sale.)
NEW YORK ( TheStreet) -- Fairholme Funds, the $7.5 billion mutual fund complex run by Bruce Berkowitz, liquidated its holdings of Warren Buffett's Berkshire Hathaway (BRK.A), while reducing stakes in American International Group (AIG), CIT Group (CIT) and Orchard Supply Hardware Stores Corp. (OSH), according to Fairholme's latest semi-annual report filed with the Securities and Exchange Commission Tuesday.
"Fund share redemptions have forced the Funds to raise liquidity. Rather than selling across the board, we have learned not to sell our best ideas," Berkowitz wrote in a modified version of the report posted on Fairholme's website.
In an apparent inconsistency, however, Berkowitz says that "our best idea remains AIG common
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