Bruce Berkowitz Q4 2025 Portfolio Review: Strategic Shifts and New Holdings

Fairholme Capital Management's portfolio, as of December 31, 2025, stood at approximately $1.43 billion, reflecting strategic adjustments during the quarter. Bruce Berkowitz's investment strategy continues to focus on deep-value opportunities, with the portfolio's composition showing both reductions in existing holdings and the initiation of new positions.

The most significant change during the quarter was a reduction in the portfolio's allocation to JOE, the stock of The J.M. Smucker Company. Berkowitz decreased his stake by 155,900 shares, representing an 0.8% reduction in the position's allocation. This was the largest change in terms of share count, though the allocation percentage decreased from 81.23% to 80.43%. Other sectors also saw share reductions, including Financial Services holdings like OZK and BRK-B, indicating a measured approach to divesting certain positions.

Conversely, the quarter featured notable increases in allocation for several companies, suggesting new investment opportunities or strengthening of existing positions. Berkowitz added shares to CF Industries Holdings Inc. (CF), increasing the position's allocation from 0.28% to 0.30%. Similarly, Progressive Corporation (PGR) and Target Corporation (TGT) saw their allocations rise from 0.39% to 0.41% and 0.15% to 0.16%, respectively. These additions, along with the Natural Resource Partners LP (NRP) position which increased from 0.08% to 0.09%, point to a continued focus on finding undervalued assets and specific sectors like Basic Materials and Consumer Defensive.

No positions were indicated as having been fully exited during this quarter. For a complete picture of Fairholme's investment activities, including detailed filings and performance, readers can visit the official investor profile on Insiderset.