Nearly 80% of Fairholme's $1.51B portfolio sits in St. Joe Company. Berkowitz added Kraft Heinz and boosted Progressive, signaling continued conviction in distressed value bets.
Bruce Berkowitz reported a $1.51 billion equity portfolio for the latest quarter, sticking with the concentrated approach that has defined Fairholme Capital Management. The top ten holdings absorb 100% of the reported assets, and a single company accounts for nearly 80% of the total.
The St. Joe Company (JOE) represents 79.67% of the portfolio. That is the cornerstone of the strategy, a Florida land developer Berkowitz has held for years. Enterprise Products Partners (EPD) comes next at 13.63%, offering energy infrastructure cash flows. Bank OZK (OZK) is 2.79%, W.R. Berkley (WRB) 1.12%, and Progressive (PGR) 0.87%. Berkshire Hathaway Class B (BRK.B) sits at 1.60%, while Kraft Heinz (KHC) is 0.16%, Apple (AAPL) 0.04%, and Home BancShares (HOMB) 0.02%. The portfolio also includes a tiny Berkshire Hathaway Class A (BRK.A) stake.
Activity during the quarter was limited. Fairholme initiated a new position in Kraft Heinz, a business with a durable franchise but a long turnaround. The firm significantly expanded its Progressive stake, one of the largest percentage additions. Bank OZK saw a modest increase. The biggest holding, St. Joe, was slightly trimmed, though it still dominates. The insurance holding W.R. Berkley was reduced a small amount.
The portfolio reflects Berkowitz's long-held preference for conservatively managed financials – Bank OZK, W.R. Berkley, Progressive, Home BancShares – and asset-based businesses where he sees a gap between market price and intrinsic value. Energy infrastructure through Enterprise Products fits that pattern with stable distributions.
AlphaScala's Alpha Score gives BRK.B a rating of 47 out of 100, labeled Mixed. Progressive scores 67, Moderate. Kraft Heinz scores 54, also Mixed. The ratings reflect the companies' current risk-return profiles but do not directly track Berkowitz's valuation thesis.
The next 13F filing will show whether Berkowitz continued to build the Kraft Heinz stake or trimmed further.
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