Bruce Berkowitz

Bruce Berkowitz

Bruce R. Berkowitz is an equity fund manager and registered investment adviser. [1] Berkowitz founded Fairholme Capital Management in 1997 and was formerly a senior portfolio manager at Lehman Brothers Holdings and a managing director of Smith Barney. Berkowitz was named 2009 Domestic-Stock Fund Manager of the Year and Domestic-Stock Fund Manager of the Decade by Morningstar, Inc.[2]

Berkowitz lives in Coral Gables, Florida.[3] In late 2010 it was announced that Berkowitz had joined the board of directors of the St. Joe Company.

Investing Philosophy:
Bruce Berkowitz concentrates his investments in a relatively small number of companies. He thinks that the more diversified the portfolio, the more likely the performance will be average. He likes companies with great managers, and deeply undervalued stocks. Benjamin Graham's "The Intelligent Investor" serves as the inspiration for Berkowitz's investment strategy. He focuses investments on companies that have exceptional management, that generate free cash, and that are cheaply priced. Berkowitz will also invest in mediocre companies that are trading at a significant discount to intrinsic value where there exists a catalyst ?an event that makes it likely the gap between market price and intrinsic value will narrow in a reasonable amount of time.

Performance of Fairholme Fund
Year Return (%) S&P500 (%) Excess Gain (%)
2010 25.5 15.1 10.4
2009 39.01 26.5 12.5
2008 -29.7 -37 7.3
2007 12.35 5.61 6.7
2006 16.71 15.79 0.9
5-Year Cumulative 60.8 12.2 48.6
2005 13.74 4.91 8.8
2004 24.93 12 12.9
2003 23.96 28.7 -4.7
2002 -1.58 -22.1 20.5
2001 6.18 -11.9 18.1
10-Year Cumulative 196 16.4 179.6
2000 46.54 -9.1 55.6

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