Bruce Berkowitz waited until financial-services stocks had more than doubled from their March 2009 lows before buying stakes now valued at more than $3 billion. The manager of the $16.5 billion Fairholme Fund said his bet wasn’t placed too late.
Bruce Berkowitz, the money manager battling the U.S. government over the future of Fannie Mae and Freddie Mac, cut his stakes in the common stock of both U.S.- owned mortgage finance companies in the first quarter.
Fairholme Capital Management LLC, the mutual-fund firm run by Bruce Berkowitz, proposed buying two businesses that insure mortgage-backed securities from Fannie Mae and Freddie Mac to salvage a bet on the two government- backed companies.
Bruce Berkowitz won the battle to change management at St. Joe Co ., the money-losing Florida landowner. Now, he has to figure out how to make its forests and swamps profitable as short sellers bet against the shares.