"Tracking Bruce Berkowitz’s Fairholme Portfolio – Q4 2019 Update"
"Bruce Berkowitz’s 13F stock portfolio value increased 11% this quarter from $475M to $528M.Fairholme dropped Kraft Heinz and reduced Vista Outdoor during the quarter.The 13F portfolio is mostly invested in St. Joe Companies.This article is part of a series that provides an ongoing analysis of the changes made to Fairholme’s 13F stock portfolio on a quarterly basis. It is based on Fairholme’s regulatory  filed on 02/14/2020. Please visit our  article for an idea on how his holdings have progressed over the years and our  for the fund’s moves during Q3 2019.Berkowitz’s 13F stock portfolio value increased 11% from $475M to $528M this quarter. The 13F portfolio currently has most of the assets invested in St. Joe Companies.Berkowitz’s flagship Fairholme Fund (FAIRX) has generated significant alpha since its December 1999 inception: the fund returned at an annualized rate of 9.08% compared to 6.08% for S&P 500 index. FAIRX has however underperformed over the most recent 10-year period. Of the ~$1.1B AUM, Cash and Equivalents are at ~38%, St. Joe stock at ~41%, Fannie/Freddie Pfds at ~20%, and Imperial Metals at ~1%. The other funds under Fairholme umbrella are Fairholme Focused Income Fund (FOCIX) and Fairholme Allocation Fund (FAAFX). Equity holdings that are not in the 13F report include Fannie Mae (FNMA) pfds (FNMAS), Freddie Mac (FMCC) pfds (FMCKJ), and Imperial Metals (IPMLF).New Stakes:None.Stake Disposals:Kraft Heinz (KHC): KHC was a ~4% of the 13F portfolio position established last quarter at prices between $25 and $32.50. It was disposed this quarter at prices between $26.50 and $33.50. The stock currently trades at $24.50.Stake Decreases:St Joe Companies (JOE): Most of Fairholme’s 13F assets are in St. Joe stock. The bulk of the position was purchased in the 2008-2009 timeframe and there have only been minor adjustments since. Last three quarters of 2017 had seen a combined ~14% increase at prices between $16.35 and $19.55. The stock is now at $18.59. Berkowitz’s ownership stake is at ~44% of the business. Last two years saw minor trimming.Note: Fairholme’s 2019 report notes record construction activity at St. Joe’s sites.Berkshire Hathaway (BRK.B): Q1 2019 saw a 5.6% of the portfolio stake purchased at prices between $188 and $209. The position was reduced by ~85% to a very small 0.84% portfolio stake next quarter at prices between $197 and $219. The stock currently trades at ~$203. Last two quarters have also seen minor trimming.Note: Berkshire Hathaway has had a previous recent round-trip in the portfolio. It was a minutely small 0.34% of the portfolio stake established in Q3 2018 at prices between $186 and $222 and disposed next quarter at prices between $188 and $224.Vista Outdoor (VSTO): VSTO was a fairly large 6.5% of the portfolio stake established in H1 2018 at prices between $13 and $20.  Q3 2018 saw a ~30% selling at prices between $15.50 and $19 and that was followed with a ~60% selling next quarter at prices between $10 and $17.50. Last four quarters have seen another ~80% selling at prices between $4.50 and $12. The stock currently trades at $5.57 and the position is now very small at ~0.37% of the portfolio.Note: Vista Outdoor is a 2015 spinoff from Alliant Techsystems which in turn was spun off from Honeywell. It is a dominant producer of ammunition that is purchased by military, police, and governments around the world.Kept Steady:None.The spreadsheet below highlights changes to Fairholme’s 13F stock holdings in Q4 2019:"