Bruce Berkowitz Has 26% Of The Fairholme Fund In AIG – Don’t You Think You Shoul

[racemize]

I've looked at this one a few times in the last six months--however, it seems like previous underwriting was not all that good.  Presumably they will be a little more cautious going forward?  I'm starting to dig in and go through it again.

[beerbaron]

I hate lifeco so much in this interest rate environment. Was it something like 6-7 years after the crash in Japan that LifeCo went bankrupt.. So if the Fed renew their commitment for 0% interest rate until 2015 we can expect blood in the streets.

 

BeerBaron

[BargainValueHunter]

After nearly four years Mr. Berkowitz has shrunk AIG to a secondary position at FCM.

 

http://www.bloomberg.com/news/articles/2015-08-14/berkowitz-cuts-aig-bank-of-america-stakes-adds-sears-canada

 

American International Group Inc., long the top holding in Bruce Berkowitz’s portfolio, lost that distinction in the second quarter as the money manager unloaded more than 20 percent of its shares.

[orthopa]

After nearly four years Mr. Berkowitz has shrunk AIG to a secondary position at FCM.

 

http://www.bloomberg.com/news/articles/2015-08-14/berkowitz-cuts-aig-bank-of-america-stakes-adds-sears-canada

 

American International Group Inc., long the top holding in Bruce Berkowitz’s portfolio, lost that distinction in the second quarter as the money manager unloaded more than 20 percent of its shares.

 

At some point I read he was going to systematically decrease exposure as the price rose. Presumably because value was less. I have a decent % of my portfolio in the warrants and happy with their return so far this year. He has a big chunk of those too but not much relative the his AUM I presume. The warrants were at steal at 5-7 a couple of years ago.

 

FWIW the AIG investment has been much more successful for him then others, namely SHLD but that story may still have a way to play out.

[InvestingOnSale]

After nearly four years Mr. Berkowitz has shrunk AIG to a secondary position at FCM.

 

http://www.bloomberg.com/news/articles/2015-08-14/berkowitz-cuts-aig-bank-of-america-stakes-adds-sears-canada

 

American International Group Inc., long the top holding in Bruce Berkowitz’s portfolio, lost that distinction in the second quarter as the money manager unloaded more than 20 percent of its shares.

 

At some point I read he was going to systematically decrease exposure as the price rose. Presumably because value was less. I have a decent % of my portfolio in the warrants and happy with their return so far this year. He has a big chunk of those too but not much relative the his AUM I presume. The warrants were at steal at 5-7 a couple of years ago.

 

FWIW the AIG investment has been much more successful for him then others, namely SHLD but that story may still have a way to play out.

 

Exactly. The article makes it sound like he was reshuffling the portfolio, when, in fact, the AIG sale was much bigger than the other moves. The better conclusion is that he is reducing exposure.