Bank OZK Takes Center Stage in Fairholme Focused Income Fund's Latest Portfolio Adjustments
Insight into Bruce Berkowitz (Trades, Portfolio)'s Strategic Moves in Q2 2024
Fairholme Focused Income Fund (Trades, Portfolio), managed by renowned investor Bruce Berkowitz (Trades, Portfolio), has recently disclosed its N-PORT filing for the second quarter of 2024. The fund is known for its strategic focus on generating current income and preserving capital through a concentrated portfolio of cash-distributing securities. These include a diverse range of assets from corporate and government debt to equity securities across both U.S. and international markets.
Significant Increase in Bank OZK Holdings
Fairholme Focused Income Fund (Trades, Portfolio) has notably increased its investment in Bank OZK (NASDAQ:OZK), adding 163,100 shares. This adjustment has expanded the total holding to 363,500 shares, marking an 81.39% increase in share count. This move has a substantial 7.28% impact on the current portfolio, with the total value of the investment reaching $15,223,380.
The most notable increase was in Bank OZK (NASDAQ:OZK), with an additional 163,100 shares, bringing the total to 363,500 shares. This adjustment represents a significant 81.39% increase in share count, a 7.28% impact on the current portfolio, and a total value of $15,223,380.
Reduction in Berkshire Hathaway Holdings
The fund also made a significant reduction in its position in Berkshire Hathaway Inc (NYSE:BRK.B), cutting down by 8,800 shares. This represents a 25% decrease in shares, impacting the portfolio by -4.07%. During the quarter, the stock traded at an average price of $408.37 and has seen a return of 11.09% over the past three months and 23.58% year-to-date.
Reduced Berkshire Hathaway Inc (NYSE:BRK.B) by 8,800 shares, resulting in a -25% decrease in shares and a -4.07% impact on the portfolio. The stock traded at an average price of $408.37 during the quarter and has returned 11.09% over the past three months and 23.58% year-to-date.
Portfolio Overview and Sector Concentration
As of the second quarter of 2024, Fairholme Focused Income Fund (Trades, Portfolio)'s portfolio included 5 stocks. The top holdings were 61.87% in Enterprise Products Partners LP (NYSE:EPD), 16.22% in Bank OZK (NASDAQ:OZK), 11.65% in Berkshire Hathaway Inc (NYSE:BRK.B), 8.05% in WR Berkley Corp (NYSE:WRB), and 2.21% in Federal Home Loan Mortgage Corp (FMCC). The holdings are mainly concentrated in the Energy and Financial Services sectors, reflecting a strategic focus on these industries.
This detailed overview of the Fairholme Focused Income Fund (Trades, Portfolio)'s recent portfolio adjustments provides valuable insights into Bruce Berkowitz (Trades, Portfolio)'s investment strategy, particularly his increased confidence in Bank OZK and adjusted stance on Berkshire Hathaway. Investors and analysts alike will be watching closely to see how these moves play out in the coming months.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.