Bruce Berkowitz - Fairholme Capital Management Investment Strategy (Sep 30, 2025)


As of Sep 30, 2025, the Fairholme Capital Management portfolio managed by Bruce Berkowitz demonstrates a sophisticated investment approach with 18 positions and an average holding period of 892 quarters. The strategy focuses on Basic Materials, Energy, Financial Services, Healthcare, Real Estate, Technology sectors with a typical position size of 21.9% of the portfolio.


The portfolio's risk management approach includes a maximum position size of 21.87% and sector diversification of 6%, exemplified by the case study of ST JOE CO (JOE). This strategic framework provides insights into Bruce Berkowitz's investment philosophy, risk management practices, and long-term value creation approach.

Investment Strategy Metrics

Key metrics revealing investment style, risk management, and performance characteristics

MetricValueCategoryDescription
Holding Period2.4 yearsStyleAverage duration positions are maintained
Position Count18StyleNumber of active positions in portfolio
Position Size21.9%RiskTypical allocation per position
Win Rate61.2%PerformancePercentage of profitable positions
Average Return766.5%PerformanceMean return across positions
Sharpe Ratio0.11PerformanceReturn per unit of risk taken

Investment Case Study: ST JOE CO (JOE)

9/30/2013 - 12/25/2025

Performance Metrics

Total Return: 119,808.85%

Holding Period: 4469 days

Max Position Size: $1,364,831,127.00

Position Weight: 61.70%

Key Events

9/30/2013: DECREASE(-7,300.00 shares) @ $0.02
12/31/2013: DECREASE(-147,129.00 shares) @ $0.02
3/31/2014: DECREASE(-16,300.00 shares) @ $0.02
6/30/2014: DECREASE(-10,306.00 shares) @ $0.03
9/30/2014: DECREASE(-27,400.00 shares) @ $0.02
12/31/2014: DECREASE(-30,100.00 shares) @ $0.02
3/31/2015: DECREASE(-31,200.00 shares) @ $0.02
6/30/2015: DECREASE(-123,280.00 shares) @ $0.02
9/30/2015: DECREASE(-170,478.00 shares) @ $0.02
12/31/2015: INCREASE(62,600.00 shares) @ $0.02
3/31/2016: DECREASE(-533,843.00 shares) @ $0.02
6/30/2016: INCREASE(467,200.00 shares) @ $0.02
9/30/2016: DECREASE(-5,100.00 shares) @ $0.02
12/31/2016: DECREASE(-16,040.00 shares) @ $0.02
3/31/2017: DECREASE(-28,100.00 shares) @ $0.02
6/30/2017: INCREASE(1,083,400.00 shares) @ $0.02
9/30/2017: INCREASE(1,517,928.00 shares) @ $0.02
12/31/2017: INCREASE(895,014.00 shares) @ $0.02
3/31/2018: DECREASE(-415,719.00 shares) @ $0.02
6/30/2018: DECREASE(-37,661.00 shares) @ $0.02
9/30/2018: DECREASE(-49,669.00 shares) @ $0.02
12/31/2018: DECREASE(-846,552.00 shares) @ $0.01
3/31/2019: DECREASE(-15,700.00 shares) @ $0.02
6/30/2019: DECREASE(-24,810.00 shares) @ $0.02
9/30/2019: DECREASE(-167,155.00 shares) @ $0.02
12/31/2019: DECREASE(-22,316.00 shares) @ $0.02
3/31/2020: INCREASE(196,352.00 shares) @ $0.02
6/30/2020: DECREASE(-22,736.00 shares) @ $0.02
9/30/2020: DECREASE(-47,176.00 shares) @ $0.02
12/31/2020: DECREASE(-14,000.00 shares) @ $0.04
3/31/2021: DECREASE(-684,800.00 shares) @ $0.04
9/30/2021: DECREASE(-502,467.00 shares) @ $0.04
12/31/2021: DECREASE(-155,600.00 shares) @ $0.05
3/31/2022: DECREASE(-470,900.00 shares) @ $0.06
6/30/2022: DECREASE(-146,800.00 shares) @ $0.04
12/31/2022: DECREASE(-181,342.00 shares) @ $38.65
3/31/2023: DECREASE(-147,000.00 shares) @ $41.61
6/30/2023: DECREASE(-361,000.00 shares) @ $48.34
9/30/2023: DECREASE(-1,068,700.00 shares) @ $54.33
12/31/2023: DECREASE(-32,600.00 shares) @ $60.18
3/31/2024: DECREASE(-166,000.00 shares) @ $57.97
6/30/2024: DECREASE(-992,981.00 shares) @ $54.70
9/30/2024: DECREASE(-374,100.00 shares) @ $58.31
12/31/2024: DECREASE(-528,600.00 shares) @ $44.93
3/31/2025: DECREASE(-410,600.00 shares) @ $46.95
6/30/2025: DECREASE(-2,700.00 shares) @ $47.70
9/30/2025: DECREASE(-625,800.00 shares) @ $49.48

Investment Thesis

Entry Context: Initial position established based on fundamental analysis

Sector Conditions: Favorable market conditions in the sector

Risk Factors:
  • Market volatility
  • Sector-specific risks

Key Learnings

  • Position sizing is critical for portfolio management
  • Important to monitor sector exposure

Sector Allocations