The Fairholme Fund is up more than 35 percent over the past year. Bruce Berkowitz, president of Fairholme Capital Management, and Morningstar’s fund manager of the year, shared his best investment ideas for the year.
“I’m optimistic about the economy—we are in the spring of a recovery,” Berkowitz told CNBC.
“There may be frost here and there, but the markets are thawing out and we have some wonderful companies in the portfolio that remain quite cheap in relationship to the cash that they generate for their owners.”
Berkowitz’s favorite sectors include health care and financials. The company recently added Winthrop Realty to its fund.
“They’re a small REIT, very smart operator…and now is the time,” he said of Winthrop. “It always pays to be greedy when most are fearful. They’re announcing some very astute acquisitions of debt. There’s a long way to go" for the stock.
Top Five Holdings in Berkowitz’s Fairholme Fund:
- Watch Berkowitz's Previous Appearance on CNBC (Dec. 1, 2009)
More Market Views:
- 6 New Stock Picks from 2009 Market Champ
- Bull Run at Risk of 20% Corrections: Mobius
- 7 Dividend Plays For Investors: Stock Pickers
CNBC Data Pages:
No immediate information was available for Berkowitz or his firm.