Bruce Berkowitz's Fairholme Confirms AIG Position (13G Filing) ~ market folly

Tuesday, April 13, 2010

Bruce Berkowitz's Fairholme Confirms AIG Position (13G Filing)

A few weeks ago, we covered that Bruce Berkowitz's Fairholme Fund (FAIRX) had started a stake in AIG (AIG). Well, we just got confirmation of this position via a 13G filing made with the SEC. Fairholme now owns 15,038,100 shares of AIG. While Berkowitz's fund currently shows over an 11% ownership stake in AIG, keep in mind that figure is pretty inflated as it does not reflect the appropriate percentage should the government convert their stake. If that happens, their ownership stake in the company would be diluted.

Also, while it is not disclosed directly in the filing, Berkowitz owns 20% of tranches of AIG's convertible debt and other AIG bonds. Back when he first mentioned the position, Berkowitz said Fairholme owned 13 million AIG shares, so it looks as if he's added over 2 million more shares since mid-March. Berkowitz will be speaking at the almost sold-out Value Investing Congress and we look forward to hearing his thoughts and latest investment ideas.

Taken from Google Finance, American International Group (AIG) is "a holding company, which through its subsidiaries, is engaged primarily in a range of insurance and insurance-related activities in the United States and abroad. AIG's four reportable segments include: General Insurance, Domestic Life Insurance & Retirement Services, Foreign Life Insurance & Retirement Services, and Financial Services."

You can view the rest of our coverage of Bruce Berkowitz's Fairholme Fund here.

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