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Fairholme/Berkowitz


rjstc

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Semi-annual reports are out. Bruce believes sum of the parts value for Sears is $125.

 

http://www.valuewalk.com/2015/07/sears-holdings-shld-liquidation/

 

http://www.valuewalk.com/wp-content/uploads/2015/07/Sears-shld.jpg

 

Which jackass drew up those price targets? 3bn market cap if Eddie succeeds in turning the company?! ;D ;D ;D SHLD would have to shrink its revenues by 80% to come anywhere near 3bn market cap in case of profitability.

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  • 3 weeks later...
  • 2 months later...

Sears is now Fairholme's #1 position:

 

http://www.bloomberg.com/news/articles/2015-11-16/berkowitz-s-fairholme-sold-almost-all-its-aig-shares-in-quarter

 

Fairholme Capital’s largest position as of Sept. 30 was Sears Holdings Corp., whose shares have declined 24 percent in 2015.

 

Yeah sold out of all of AIG except warrants and BAC. Wonder if this is due more to redemption's or he thinks they have reached full value. Hard to think these reached full value if rates do eventually rise. Maybe the readthough is that he believes rates wont rise any time soon.

 

I dont think many shareholders are going to love that SHLD is his biggest position. That position hasnt worked out for a long time and unless your really patient money I can see some getting sick of waiting.

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Just Came in an email.

 

 

We are pleased to announce that The Fairholme Allocation Fund (FAAFX) will re-open to new investors effective Wednesday, November 18, 2015.  The November 17, 2015, press release, which can be found by visiting http://fairholmefunds.com/press-releases, describes the re-opening of the Fund in further detail.  The Manager reserves the right to change or modify the recommencement or suspension in the future.

   

Sincerely,

 

Fairholme Funds, Inc.

   

The Funds' investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the Funds, and it may be obtained by calling Shareholder Services at 1-866-202-2263 or visiting our website www.fairholmefunds.com. Read it carefully before investing.

Fairholme Funds, Inc.

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Sears is now Fairholme's #1 position:

 

http://www.bloomberg.com/news/articles/2015-11-16/berkowitz-s-fairholme-sold-almost-all-its-aig-shares-in-quarter

 

Fairholme Capital’s largest position as of Sept. 30 was Sears Holdings Corp., whose shares have declined 24 percent in 2015.

 

Yeah sold out of all of AIG except warrants and BAC. Wonder if this is due more to redemption's or he thinks they have reached full value. Hard to think these reached full value if rates do eventually rise. Maybe the readthough is that he believes rates wont rise any time soon.

 

I dont think many shareholders are going to love that SHLD is his biggest position. That position hasnt worked out for a long time and unless your really patient money I can see some getting sick of waiting.

 

At least he didn't buy VRX...  ;D ;D ;D

 

 

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Sears is now Fairholme's #1 position:

 

http://www.bloomberg.com/news/articles/2015-11-16/berkowitz-s-fairholme-sold-almost-all-its-aig-shares-in-quarter

 

Fairholme Capital’s largest position as of Sept. 30 was Sears Holdings Corp., whose shares have declined 24 percent in 2015.

 

Yeah sold out of all of AIG except warrants and BAC. Wonder if this is due more to redemption's or he thinks they have reached full value. Hard to think these reached full value if rates do eventually rise. Maybe the readthough is that he believes rates wont rise any time soon.

 

I dont think many shareholders are going to love that SHLD is his biggest position. That position hasnt worked out for a long time and unless your really patient money I can see some getting sick of waiting.

 

At least he didn't buy VRX...  ;D ;D ;D

 

Bruce has done a few of deals with Ackman....im sure hes well aware of the situation. I wouldn't be surprised if hes at least looked at it.

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...just noticed he is nibbling at SHOS too plus he is upping his holdings of SRSC.

 

He is all over the Sears universe in his portfolio. I HAVE to believe he has had at least ONE conversation with his fellow nuevo Floridian Eddie Lampert.  :P

 

He actually does speak with ESL. Confirmed by myself and another poster at an event last year. Unclear how often they speak, but I have to think it's pretty often given his concentration in the Sears universe.

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  • 2 months later...

He just keeps on buying...

 

http://www.emqtv.com/bruce-r-berkowitz-purchases-142000-shares-of-sears-holdings-corp-shld-stock/147696/

 

Bruce R. Berkowitz bought 142,000 shares of the firm’s stock in a transaction dated Tuesday, January 19th. The shares were acquired at an average price of $17.39 per share, for a total transaction of $2,469,380.00.
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Either he and Eddie have a very tight game plan mapped out, or in case he bought it as a general investment because he thinks it is cheap, he is going to lose badly on this investment in the end.

 

I don't think it's the "tight game plan". He has given a couple of answers again, and again, and again, when people ask:

 

1) The real estate is worth a ton of money. More recently, he has stated that this is a) confirmed by the Seritage spin-off, and b) the remaining, non-spun real estate is substantially similar to what went to Seritage.

 

2) The guarantor/non-guarantor structure matters (I must be an idiot for mentioning this, essentially encouraging the same debate to occur for the 73rd time...)

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  • 2 weeks later...

He is super convinced its worth $125 a share.

 

You are probably correct in assuming that he is super convinced.

 

However the issue is that super convinced, then super wrong is how you make super losses.  :)

 

You have to be right damn near 100% of the time when you take such high AUM % positions.

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