Fairholme Capital 13F: Sells MBIA, Wells Fargo; Buys Sears Holdings

Fairholme Capital 13F: Sells MBIA, Wells Fargo; Buys Sears Holdings

Fairholme Capital has filed its 13F for the first three months of 2013 with the SEC this afternoon. For those willing to read it, the full document is available at the SEC website at this link, though there’s a summary of the major changes to the fund’s asset holdings below. In the period, Fairholme saw its 13F portfolio change very little, coming in at $6,947,716,100 at the end of March compared to its December asset numbers of $6,998,113,793.

Fairholme Capital

Fairholme Capital Top 10 Holdings

The first three months of 2013 were an inactive period at Fairholme Capital. The company bought into no new positions in the period, added to only eight of its positions, left one stock and reduced its position in eight stocks. The value of the firm’s top ten holdings stands at more than 90 percent of the value of the entire holding, a mark of confidence at Fairholme.

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Fairholme Capital is invested most heavily in American International Group Inc (NYSE:AIG), with 43.62 percent of its portfolio in the firm. The company has 16.80 percent of its portfolio nested in Bank of America Corp (NYSE:BAC) shares, 10.80 percent in Sears Holdings Corp (NYSE:SHLD), 8.34 percent in The St. Joe Company (NYSE:JOE) and 6.14 percent in Leucadia National Corp. (NYSE:LUK).

In the first three months of 2013, Fairholme added to its position in all of those companies, bar The St. Joe Company (NYSE:JOE) where it sold an insignificant amount of its holdings. None of the changes at the top were too significant, except perhaps the purchase of 1,362,200 shares in Sears Holdings Corp (NYSE:SHLD), and 845,822 shares in Leucadia National Corp. (NYSE:LUK).

One of the few major changes made by Fairholme in the period ending March 31 was the sale of 11,069,600 shares, or 26 percent of its holdings, in MBIA Inc. (NYSE:MBI). The insurer has seen some good days in the second quarter after it reached a settlement with Bank of America Corp (NYSE:BAC) in a long running court battle.

Fairholme Capital also decided to sell 25 percent of it stake in Wells Fargo & Company. The bank under performed other institutions in the financial sector in the first three months of the year, and many funds have seen fit to reduce their holdings. Fairholme reduced its stake by 50,500 shares according to this 13F filing.

The two stocks that Fairholme Capital sold in this quarter were Jefferies Group LLC, which stopped trading earlier in the year, and CIT Group Inc. (NYSE:CIT). Fairholme sold all of its 3,223,229 shares in the bank holding company.

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