appears be losing faith in his teacher. Long considered a protegee of Warren Buffet's
value-based investment strategy, Berkowitz has now sold a big stake in Buffett's Berkshire Hathaway Inc
, reports Jason Kephart of InvestmentNews
In the second quarter, Berkowitz's Fairholme Capital Management
has dumped nearly all of its A shares of Berkshire Hathaway and reduced its holdings of B shares by about 17 percent, writes Kephart. Fairholme sold a total of 1,567 of the A shares, currently trading at $128,529 a pop, and 163,314 of the B shares, currently $85 each.
That's a total sale of about $215 million worth of Berkshire stock.
On the year, Berkowitz's flagship Fairholme Fund
"has been enjoying a bit of a renaissance," writes Kephart, gaining 30 percent year-to-date after losing over 32 percent in 2011. That's tops in the large-cap-value space this year. But the fund's three-year annualized return of 5.89 percent makes it nearly the worst-performing large-cap fund in that period.
says that the fund's biggest buy in the quarter was 2.7 billion shares of the Jeffries Group
Morningstar shows that the Fairholme Fund holds $7.1 billion. Its top four holdings are AIG (which accounts for 34 percent of the portfolio), Sears, AIA, and Bank of America.
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