"Tracking Bruce Berkowitz’s Fairholme Portfolio – Q1 2021 Update"
"Bruce Berkowitz’s 13F stock portfolio value decreased this quarter from $1.24B to $1.21B.The portfolio value remained almost steady this 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 5/17/2021. Please visit our  article for an idea on how his holdings have progressed over the years and our  for the fund’s moves during Q4 2020.Berkowitz’s 13F stock portfolio value decreased marginally from $1.24B to $1.21B 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 10.64% compared to 6.63% for S&P 500 index through 2020. FAIRX has however underperformed over the most recent 10-year period. Of the ~$1.5B AUM, Cash and Equivalents are at ~22%, St. Joe stock at ~66%, Fannie/Freddie pfds at ~11%, and Imperial Metals at ~2%. 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, Freddie Mac (FMCC) pfds, and Imperial Metals (IPMLF).New Stakes:Vistra Corp (VST), Williams Companies (WMB), Verizon Communications (VZ), and TC Energy Corp (TRP): These are very small (less than ~0.75% of the portfolio each) stakes established this quarter.Stake Disposals:Bank of America (BAC) and Canadian Natural Resources (CNQ): These small stakes established over the last two quarters were disposed this quarter. The 1.19% BAC stake was established at prices between ~$22.50 and ~$30. The elimination this quarter was at prices between ~$29.50 and ~$39.50. The stock is now at ~$40. CNQ was a small 0.93% of the portfolio position built at prices between ~$21 and ~$32. The disposal this quarter was at prices between ~$22.50 and ~$32.50. It is now at ~$36.55.Cincinnati Financial (CINF), Altria Group (MO), Enterprise Product Partners (EPD), Plains All American Pipeline (PAA), Magellan Midstream (MMP), Occidental Petroleum (OXY) wts, and Philip Morris (PM): These very small (less than ~0.75% of the portfolio each) stakes were eliminated during the quarter.Stake Increases:AT&T Inc. (T), Kinder Morgan (KMI), and Energy Transfer LP (ET): These small (less than ~1% of the portfolio each) stakes established in Q3 2020 were increased over the last two quarters. The ~1% AT&T stake was purchased at prices between ~$26.50 and ~$31.50 and it now goes for ~$28.80. There was a minor ~3% increase this quarter. The 0.92% KMI position saw a ~220% stake increase last quarter at prices between ~$11.50 and ~$15 and it currently trades well above that range at ~$18.20. There was a ~5% stake increase this quarter. ET is a 0.65% of the portfolio position purchased at prices between ~$5 and ~$8.60 and it is now well above that range at ~$10.95.Enbridge Inc. (ENB) and CVS Health (CVS): These two small (less than ~1% of the portfolio each) stakes established last quarter were increased by roughly one-third each this quarter.Stake Decreases:St Joe Companies (JOE): ~91% 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 ~$43.60. Last few quarters have seen only minor adjustments.Note: Fairholme’s 2020 report mentions the following as the reasons for their continued bullishness: robust pricing, strong sales, and the fact that their entitled lands in Walton, Bay, and Gulf Counties may be worth exponentially more than implied by the company’s market value. Fairholme’s mid-year 2020 report also pointed to St. Joe’s project update .Berkshire Hathaway (BRK.A) (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. Q1 2020 saw a ~9% portfolio stake built at prices between ~$162 and ~$230. There was a one-third increase next quarter at prices between $170 and $202. Last quarter saw a ~80% selling at prices between ~$201 and ~$234. That was followed with a ~15% reduction this quarter at prices between ~$227 and ~$26. The stock currently trades at ~$277 and the stake is now very small at 1.08% of the portfolio.Old Republic International (ORI): The minutely small (less than ~0.50% of the portfolio each) ORI stake established last quarter was reduced by ~35% this quarter.Kept Steady:Western Midstream Partners (WES): WES is a small stake first purchased in Q1 2020 at prices between ~$3 and ~$22. Q3 2020 saw a ~85% stake increase at prices between $7.35 and $10.50. The stock is now at ~$22.30 and the stake is at 0.85% of the portfolio.Apple Inc. (AAPL): The minutely small 0.04% of the portfolio AAPL stake was kept steady this quarter.The spreadsheet below highlights changes to Fairholme’s 13F stock holdings in Q1 2021:Source: John Vincent. Data constructed from Fairholme's 13F filings for Q4 2020 and Q1 2021.Regulatory filings thru 3/14/2021: 13D/A – 3/12 – JOE – 21.89M shares – 37.2% of business."