Bargain-Hunting Berkowitz Enjoying 2009 Resurgence

Legendary investor Bruce Berkowitz saw his Fairholme Fund (Nasdaq: FAIRX) decline by -29.7% in 2008, but Fairholme is up 18% compared to a 5% gain for the S&P 500 so far in 2009.

Like many value-focused investors, Berkowitz was using the market’s desperate dips over the last year to find bargains. He told the Los Angeles Times this month, “There are better bargains now than any time in the last 10 years.”

The recent performance of some of Berkowitz’s end-of-Q1 holdings show that his bargain hunting may be paying off. Since the end of Q1, car rental firm Hertz Global Holdings (HTZ) and independent auto finance company Americredit (ACF) have more than doubled, and credit card company American Express (AXP) isn’t far behind. Other top performers from Fairholme’s end-of-Q1 holdings during Q2 included health insurer Wellpoint (WLP), diversified conglomerate Leucadia (LUK), and retailer Sears Holdings (Nasdaq: SHLD).

The laggards, meanwhile, included pharmaceutical companies Pfizer (PFE) and Forest Laboratories (FRX) and aerospace firm Northrop Grumman (NOC).

Investors won’t be sure of where Berkowitz stands now until next month, when the deadline for end-of-Q2 filings hits. At tickerspy.com, members can track Berkowitz’s latest holdings, see a graph of their combined performance, and be notified when new holdings are made public.

Pro portfolio performance is based on institutions’ top-15 holdings as disclosed in quarter-end filings with the SEC. Pro performance does not take into account additional holdings beyond the top 15 nor does it include positions that are not required to be disclosed by the SEC. As such, Pro portfolio performance should be considered an approximation and not a precise record of how an institution has performed over time.

Tags: ACF, AXP, FAIRX, FRX, HTZ, LUK, NOC, PFE, SHLD, WLP