Bruce Berkowitz is the founder and portfolio manager of the Fairholme Fund. Fairholme has crushed the market since its inception in December 1999, turning in 15.9% annualized returns versus a paltry 0.2% return for the S&P 500.
Berkowitz is a value investor to the core with Warren Buffett and Benjamin Graham as major influences. It should come as no surprise that Fairholme has held a significant stake in Buffett's Berkshire Hathaway for the life of the fund.
Berkowitz adheres to a concentrated investment style, putting large amounts of money into his best ideas. For example, in the most recent quarter he put 10% of the fund into a new position in drug giant Pfizer. He wants to invest in companies with excellent management teams that have a track record of honesty and integrity. Berkowitz places a large emphasis on businesses that generate a lot of free cash flow. Of course, the company has to be significantly undervalued to be considered for his portfolio.
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