Bruce Berkowitz, Morningstar’s Fund Manager Of The Decade, has established a position in MBIA, Inc. which  provides financial guaranty insurance for municipal bonds and asset-backed securities in the United States and internationally. According to Gurufocus.com, Berkowitz purchased 22,736,200 shares at a cost around $5.61, which turns out to be around 11% of the company. If you recall, Berkowitz avoided much of the financial crisis by not investing in financial and insurance companies as he found their balance sheets to hard to read. It appears that has changed recently as he has established positions in several financial companies that were hit hard by the financial crisis.  With the addition of MBIA, financials have now become Fairholme’s largest sector weight as financials now represent 57% of the total portfolio. Other financial and insurance companies in the Fairholme Fund include:

• Bank of America (BAC) in which Fairholme owns 39.3 million shares representing 6.69% of Fairholm’e portfolio
• AIG (AIG) in which Fairholme owns 15.3 million shares representing 4.89% of Fairholm’e portfolio
• Regions Financial (RF) in which Fairholme owns 75.815 million shares representing 5.67% of Fairholm’e portfolio
• Citigroup (C) in which Fairholme owns 227.460 million shares representing 8.78% of Fairholm’e portfolio
• Leucadia National Corp. (LUK) in which Fairholme owns 20.302 million shares representing 4.8% of Fairholm’e portfolio
• Humana Inc. (HUM) in which Fairholme owns 15.8 million shares representing 7.04% of Fairholm’e portfolio
• WellCare Health Plans (WCG) in which Fairholme owns 7.8 million shares representing 2.2% of Fairholm’e portfolio
• Ameri Credit Corp. (ACF)in which Fairholme owns 30.673 million shares representing 6.94% of Fairholm’e portfolio

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