Berkowitz’s fund continued trimming its holdings in preferred shares of Freddie Mac and Fannie Mae. During the quarter, the fund sold 7,886,338 shares of Freddie Mac 8.375% fixed-to-floating preferred shares (FMCKJ.PFD) and 7,678,501 of Fannie Mae Series S preferred shares (FNMAS.PFD). The two trades chopped 9.78% of the portfolio in the aggregate.
Freddie Mac, a major U.S. government-sponsored enterprise, invests in mortgage loans and mortgage-related securities. The company disclosed on Tuesday that strong competitive fundamentals and continued guarantee book growth contributed to $2.2 billion in comprehensive income for the quarter. CEO Donald Layton said the strong performance “demonstrated the increased stability of [Freddie Mac’s] earnings” and continued progress in its mission to create a “better housing finance system” for lenders, investors, families and taxpayers.
GuruFocus ranks Freddie Mac’s profitability 4 out of 10: although the company has expanding operating margins, Freddie Mac’s return on assets of 0.28% underperform 83% of global competitors. On the other hand, Fannie Mae has a slightly worse return on assets of 0.07%.
My name is Samual Lau. I am a long-term value investor and a zealous disciple of Ben Graham. And I am a MBA graduated in May 2010 from Carnegie Mellon University. My concentrations are Finance, Strategy and Marketing.
TimelessInvestor
Bruce Berkowitz’s Fairholme Fund continues to trim GSEs preferred stocks
Not good news, Bruce Berkowitz’s Fairholme Fund continues to trim GSEs preferred stocks
Berkowitz’s fund continued trimming its holdings in preferred shares of Freddie Mac and Fannie Mae. During the quarter, the fund sold 7,886,338 shares of Freddie Mac 8.375% fixed-to-floating preferred shares (FMCKJ.PFD) and 7,678,501 of Fannie Mae Series S preferred shares (FNMAS.PFD). The two trades chopped 9.78% of the portfolio in the aggregate.
Freddie Mac, a major U.S. government-sponsored enterprise, invests in mortgage loans and mortgage-related securities. The company disclosed on Tuesday that strong competitive fundamentals and continued guarantee book growth contributed to $2.2 billion in comprehensive income for the quarter. CEO Donald Layton said the strong performance “demonstrated the increased stability of [Freddie Mac’s] earnings” and continued progress in its mission to create a “better housing finance system” for lenders, investors, families and taxpayers.
GuruFocus ranks Freddie Mac’s profitability 4 out of 10: although the company has expanding operating margins, Freddie Mac’s return on assets of 0.28% underperform 83% of global competitors. On the other hand, Fannie Mae has a slightly worse return on assets of 0.07%.
https://www.gurufocus.com/StockBuy.php?GuruName=Fairholme+Fund
Fairholme Fund Latest Trades:
(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)
Total Records: 264 Page:1 2 3 4 5 6 7 8 9 10
LAST (14)
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About Timeless Investor
My name is Samual Lau. I am a long-term value investor and a zealous disciple of Ben Graham. And I am a MBA graduated in May 2010 from Carnegie Mellon University. My concentrations are Finance, Strategy and Marketing.