Bruce Berkowitz (Trades, Portfolio) is the founder of Fairholme Fund (Trades, Portfolio)s (FAIRX, Financial), a mutual fund company with $6.56 billion in assets under management at Jan. 7.
Berkowitz is famous for investing in battered financials when shocks in the stock market priced them lower than his estimate of intrinsic value. In his fourth quarter letter to shareholders, Berkowitz wrote:
“Today, we believe FAIRX is poised for above-average performance with look-through asset values estimated to be above the Fund’s market price. Cash currently exceeds 8% and we believe overall liquidity is ample to stay the course.”
In the fourth quarter, Berkowitz reported three new holdings were added to his funds: Sears Canada Inc. (SRSC, Financial), Sears Warrants (SHLDW, Financial) and Canadian Natural Resources Ltd. (CNQ, Financial).
Sears Canada Inc. (SRSC, Financial)
Berkowitz reported holding 14,095,696 shares of Sears Canada in the fourth quarter. The holding makes up 1.9% of his portfolio. His average quarterly stock price was $9.
Sears Canada Inc. was incorporated under the laws of Canada on Sept. 17, 1952. Sears Canada Inc. has a market cap of $964.0 million; its shares were traded at around $9.46 with a P/E ratio of 7.70 and P/S ratio of 0.30. Sears Canada Inc. had an annual average earnings growth of 4.10% over the past five years.
Sears Warrants (SHLDW, Financial)
Berkowitz reported holding 6,413,656 Sears Warrants, give it a 1.8% space in his portfolio.
Canadian Natural Resources Ltd. (CNQ, Financial)
Berkowitz reported holding 503,600 shares of Canadian Natural Resources Ltd., a stock he previously sold out of in the second quarter of 2013. The holding represents 0.21% of his portfolio. The stock’s price averaged $34.
Canadian Natural Resources Ltd. was incorporated under the laws of the Province of British Columbia on Nov. 7, 1973 as AEX Minerals Corporation (N. Canadian Natural Resources Ltd has a market cap of $34.92 billion; its shares were traded at around $31.98 with a P/E ratio of 14.0 and P/S ratio of 2.0. The dividend yield of Canadian Natural Resources Ltd. stocks is 2.70%. Canadian Natural Resources Ltd. had an annual average earnings growth of 7.0% over the past 10 years.
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