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Fairholme Exits Common Stock?

Discussion › Recent News › Fairholme Exits Common Stock?

This topic contains 10 replies, has 6 voices.

Viewing 11 posts - 1 through 11 (of 11 total)
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  • November 15, 2014 at 1:29 pm #2699

    dpsims
    Participant

    Bruce Berkowitz’s Fairholme Capital Management LLC exited its common-stock investments inFannie Mae and Freddie Mac in the third quarter, while limiting disclosures about preferred stakes in the U.S. mortgage-finance companies.

    The investment firm opted to stop disclosing preferred stakes because U.S. Securities and Exchange Commission rules don’t require them to be listed, the firm said in today’s Form 13F filing.

    Fairholme’s investments in Fannie Mae and Freddie Mac were concentrated in the preferred securities, previous filings show. Investments in the firms accounted for about 15 percent of the portfolio at Berkowitz’s main Fairholme Fund, according to a July 29 letter.

    Investors in Fannie Mae and Freddie Mac suffered losses after losing a legal bid to force the bailed-out companies to share profits with private holders. The $7.85 billion Fairholme Fund fell 5.7 percent in the third quarter, its worst decline since 2011.

    “We remain steadfast in our belief that — at a minimum –- shareholders are due just compensation,” Berkowitz said in a letter to investors dated Oct. 1 about the Fannie-Freddie stake. “We will continue to pursue our legal rights.”

    Fannie Mae common shares lost 31 percent in the quarter to $2.69, while Freddie Mac common stock declined 32 percent to $2.64.

    Berkowitz’s Miami-based firm also exited a stake in Genworth Financial Inc. (GNW) in the third quarter, today’s filing shows, sidestepping a November plunge in the insurer’s shares. Fairholme owned about 1.1 million Genworth shares at the end of June.

    Money managers who oversee more than $100 million in equities in the U.S. must file a Form 13F within 45 days of each quarter’s end to list those stocks as well as options and convertible bonds. The filings don’t show non-U.S. securities, holdings that aren’t publicly traded, or cash.
    mobile.bloomberg.com/news/2014-11-14/fairholme-exits-fannie-freddie-common-limits-disclosures.html

    November 15, 2014 at 1:29 pm #2700

    dpsims
    Participant

    I don’t believe it.

    November 15, 2014 at 1:37 pm #2701

    dpsims
    Participant

    There seems to be a possibility that OTC investments don’t require disclosure. Another reason to uplist.

    November 15, 2014 at 2:11 pm #2703

    mrfidlsticks
    Participant

    Yes …. I believe you are right I found the 13f docs here
    http://www.sec.gov/Archives/edgar/data/1056831/000091957414006682/0000919574-14-006682-index.htm

    open the page then click on the “primary_doc.html” link and a cover page will open … then about half way down it reads ….
    “For purposes of this Form 13F-HR for the third quarter of 2014, the filer is not disclosing its holdings in both Federal Home Loan Mortgage Corp and Federal National Mortgage Association, because such securities are not included on the Official List of Section 13(f) securities released by the Securities and Exchange Commission.”

    looks like Fairholme have chosen not to list the securities
    I think the Bloomberg writer may have assumed the securities were sold as they are no longer listed on the latest 13f-hr ….
    could someone from IU contact them via comments or “other” (use your secret powers Tim) so we can find out if this is the case
    Or if they know something different … what is it ?

    November 15, 2014 at 2:51 pm #2711

    foscofrank2
    Participant

    David, the article is fake. Nobody in with half a brain would believe that story. We must be getting close to some big news. The BASHERS on yahoo are dumb enough to post such stuff is actually funny!

    Hope your doing well bud! I might be posting here more if your going to be around

    November 15, 2014 at 3:06 pm #2713

    catbirdseat
    Participant

    These articles are silly and meant to confuse retail investors, many of which don’t understand the listing requirements for OTC. Any well disciplined, in the know institutional investor like Berkowitz is using the downturn period to either double-down, lower cost basis, and possibly reduce taxes.

    November 15, 2014 at 4:28 pm #2717

    longwoolywilly
    Participant

    What’s up with the time stamp of the posts so far? The day and time right now on the east coast is November 15, 2014 11:22 AM but the time stamp on the last post is “November 15, 2014 at 3:06 pm”. Is this site using GMT or something else to record time? EST is clearly not being used neither any of the other standard times here in the US is being used.

    November 15, 2014 at 4:34 pm #2718

    foscofrank2
    Participant

    Seems like the morons posting this stuff do not think we have direct contact with our senior holder?
    They are dumb enough to think the article would not be exposed as fraud in minutes with one phone call to BERKO team???

    It is just insane the length low intelligent government workers will go to hurt its own people. What is sad is our tax funds go to UST to steal our profits, steal our company and steal our assets!!

    Those fools could not hold a job in the real world shown by the lack of success of giethner the fraud!!!

    November 15, 2014 at 7:21 pm #2722

    dpsims
    Participant

    I wonder if negative news stories like this are related to the short interest which has spiked recently.

    I think we need more disclosure over who is long and who is short.

    November 15, 2014 at 8:41 pm #2727

    dpsims
    Participant

    Someone posted this on Glen Bradford’s article regarding short interest.

    Thudpilot
    Nov 15 01:25 PM
    I just found out that the story printed by Bloomberg was not correct. The writer failed to check the Form 13F-HR correctly which Fairholme filed with the SEC. In other words, Fairholme did not sell there holding in the GSE’s:
    Quote from the Form 13F-HR, “For purposes of this Form 13F-HR for the third quarter of 2014, the filer is not disclosing its holdings in both Federal Home Loan Mortgage Corp and Federal National Mortgage Association, because such securities are not included on the Official List of Section 13(f) securities released by the Securities and Exchange Commission.”

    This nullifies the report that Fairholme sold out.

    November 17, 2014 at 10:54 am #2749

    Investors Unite
    Keymaster

    Thanks for bringing the time stamp issue to our attention, longwoolywilly. We’ve adjusted the settings, and all new posts should now appear in EST.

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