Bruce Berkowitz 2013 report on holdings, below is the text and full PDF (with charts) can be found at the bottom.

Fairholme Capital Management, L.L.C.

Bruce berkowitz

 

PORTFOLIO MANAGER’S REPORT

 

For the Year Ended December 31, 2013

 

January 29, 2014

 

To the Shareholders and the Directors of The Fairholme Fund:

 

The Fairholme Fund (the “Fund” or “FAIRX” or “Fairholme”) gained 35.54% versus 32.39% for the S&P 500 Index (the “S&P 500”) in 2013. The following table compares the Fund’s performance (after expenses) with that of the S&P 500, with dividends and distributions reinvested, for various periods ending December 31, 2013.

 

 

Since

ONE YEAR       Five Years        Ten Years          Inception

 

(12/29/1999)

Cumulative

FAIRX

Fairholme

35.54%

116.98%

184.24%

450.94%

TOTAL

RETURN

S&P 500

32.39%

128.19%

104.30%

64.68%

$55.09

$50

Annualized
Fairholme

35.54%

16.76%

11.01%

12.95%

S&P 500

32.39%

17.94%

7.41%

3.62%

FAIRX

PRICE

$40

$39.20

$30

$20

S&P 500

TOTAL

RETURN

$16.47

$10

$0

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

 

 

 

 

This page is not part of The Fairholme Fund 2013 Annual Report. i

 

At December 31, 2013, the value of a $10.00 investment in the Fund at its inception was worth $55.09 (calculated by assuming reinvestment of distributions into additional fund shares) compared to $16.47 for the S&P 500. FAIRX returned almost seven times more than the S&P 500 on a $10.00 investment over 14 years. Of the $55.09, the year-end share price (net asset value per share) was $39.20 and the value of distributions reinvested was $15.89. This difference, more than anything, demonstrates how the Fund has outperformed the market (as represented by the S&P 500) over the long run.

The advantages of our long-term focused investment approach are most evident when evaluating our performance over any 5-year period since the inception of FAIRX. Fairholme has achieved 105 positive 5-year return periods and only 4 negative 5-year return periods, compared with 82 positive 5-year return periods and 27 negative 5-year return periods for the S&P 500. The Fund’s average rolling 5-year return was 69.15% versus 20.57% for the S&P 500. The Fund has outperformed the S&P 500 in 95 of 109 5-year periods, calculated after each month’s end. The Fund’s worst 5-year-period return was (6.89)% versus (29.05)% for the S&P 500. In its best 5-year period, the Fund’s return was 163.08% versus the S&P 500’s best return of 128.19%.

60-Month Forward Rolling Periods

 

Fund’s Rolling 5-Year-Period Returns*

 

FAIRX

S&P 500

RElative

Advantage

Best

+163.08%

+128.19%

+34.89%

(3/2000 – 2/2005)

(1/2009 – 12/2013)

Worst

(6.89)%

(29.05)%

+22.16%

(1/2007 – 12/2011)

(3/2004 – 2/2009)

Average

+69.15%

+20.57%

+48.58%

Positive Performance Periods

105 (96.3%)

82 (75.2%)

Negative Performance Periods

4

27

 

Monthly Rolling 5-Year FAIRX Performance Frequency Distributions*

 

$30

1, 2  - View Full Page