Bank OZK Takes the Lead in Fairholme Focused Income Fund's Latest Portfolio Update
Insight into Bruce Berkowitz (Trades, Portfolio)'s Investment Moves for Q4 2023
Fairholme Focused Income Fund (Trades, Portfolio), managed by renowned investor Bruce Berkowitz (Trades, Portfolio), has revealed its N-PORT filing for the fourth quarter of 2023. The fund is known for its strategy of seeking current income and capital preservation through a focused portfolio of cash-distributing securities. Bruce Berkowitz (Trades, Portfolio)'s investment approach is closely monitored by GuruFocus under two distinct profiles: "Bruce Berkowitz (Trades, Portfolio)" for Fairholme Capital Management's SEC filings, and "Fairholme Fund (Trades, Portfolio)" for the flagship fund's stock holdings.
Summary of New Buys
Fairholme Focused Income Fund (Trades, Portfolio) expanded its portfolio with 3 new stocks in the last quarter:
Bank OZK (NASDAQ:OZK) emerged as the standout addition with 281,700 shares, making up 15.4% of the portfolio and valued at $11.79 million.
CF Industries Holdings Inc (NYSE:CF) was the second major acquisition, comprising 27,600 shares or approximately 2.71% of the portfolio, worth $2.07 million.
Home BancShares Inc (NYSE:HOMB) rounded out the top three, with 69,600 shares accounting for 2.02% of the portfolio, totaling $1.54 million.
Key Position Increases
The fund also bolstered its position in an existing holding:
Enterprise Products Partners LP (NYSE:EPD) saw an increase of 187,300 shares, bringing the total to 1,988,000 shares. This adjustment signifies a 10.4% rise in share count and a 6.55% impact on the current portfolio, valued at $53.24 million.
Key Position Reductions
Conversely, Fairholme Focused Income Fund (Trades, Portfolio) trimmed its stake in one company:
The fund cut its investment in Freehold Royalties Ltd (TSX:FRU) by 22,100 shares, leading to a 55.25% decrease in shares and a 0.43% impact on the portfolio. The stock traded at an average price of C$14.59 during the quarter and has seen a -1.58% return over the past three months and a 2.41% year-to-date return.
Portfolio Overview
As of the fourth quarter of 2023, Fairholme Focused Income Fund (Trades, Portfolio)'s portfolio consisted of 7 stocks. The top holdings were 69.53% in Enterprise Products Partners LP (NYSE:EPD), 15.4% in Bank OZK (NASDAQ:OZK), 8.84% in WR Berkley Corp (NYSE:WRB), 2.71% in CF Industries Holdings Inc (NYSE:CF), and 2.02% in Home BancShares Inc (NYSE:HOMB). The investments are primarily concentrated in three industries: Energy, Financial Services, and Basic Materials.
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.
