Bruce Berkowitz's Fairholme Capital Q2 2026 Investment Summary

As of June 30th, 2026, Fairholme Capital Management's Bruce Berkowitz has maneuvered the fund through various market adjustments, focusing on value investing with an eye for undervalued opportunities. The portfolio maintains its characteristic concentration in real estate while incorporating significant positions across other sectors.

Prominent Purchases Observed This Quarter

• Berkowitz significantly increased his stake in Fairholme Capital Management's holdings of Berkshire Hathaway Inc (BRK-B) and Pfizer Inc (PFE).
• The purchase of Kraft Heinz Co (KHC) stock saw an impressive 92.13% increase in shares during the quarter.
• Similarly, Campbell Soup Company (CPB) experienced a full 100% increase in its share count.

These substantial additions reflect Berkowitz's active investment strategy and his confidence in these specific companies' prospects. The significant buying pressure noted for BRK-B, PFE, KHC, and CPB suggests strong conviction behind these positions within the portfolio.

Notable Reductions in Portfolio Holdings

• The largest position reduction occurred with ST JOE Co (JOE), where Berkowitz decreased his stake by 5.35% during Q2.

Berkowitz also made adjustments to other holdings, including a smaller decrease in shares of Progressive Corp (PGR). These changes indicate ongoing portfolio management aimed at optimizing risk and return profiles based on evolving market conditions and fundamental analysis.

Portfolio Structure Highlights

• The portfolio remains dominated by real estate sector investments, primarily concentrated in Fairholme Capital Management's top holding: ST JOE Co (JOE), accounting for 76.43% of the total portfolio value.
• Energy sector allocation, represented by Enterprise Products Partners LP (EPD), stands at approximately 13.46%.
• Financial Services constitute another significant portion of the portfolio with combined holdings in BRK-B, WR Berkley Corp (WRB), PGR and KHC/CPB contributing to this category totaling about 9.02% allocation.

The remaining allocations are distributed across various sectors including Healthcare, Consumer Defensive, Industrials, and Technology, reflecting a diversified approach despite the heavy weighting towards real estate.