Bruce Berkowitz's Fairholme Reduces MBIA Stake ~ market folly

Wednesday, April 10, 2013

Bruce Berkowitz's Fairholme Reduces MBIA Stake

Bruce Berkowitz's investment firm Fairholme Capital has just filed an amended 13G with the SEC regarding shares of MBIA (MBI).  Per the filing, Fairholme has disclosed that they've reduced their position in MBI by 11 million shares.

This marks around a 26% reduction in their position size.  The filing was required due to portfolio activity on March 31st and Fairholme now owns 16.3% of the company.  We've previously posted up Berkowitz's investment thesis on MBIA for those interested.

Per Google Finance, MBIA  "operates the financial guarantee insurance businesses in the industry and is a provider of asset management advisory services. These activities are managed through three business segments: United States public finance insurance, structured finance and international insurance, and advisory services. MBIA’s United States public finance insurance business is operated through National Public Finance Guarantee Corporation and its subsidiaries, its structured finance and international insurance business is primarily operated through MBIA Insurance Corporation and its subsidiaries, and its asset management advisory services business is primarily operated through Cutwater Holdings, LLC and its subsidiaries. It also manages certain business activities through its corporate, asset/liability products, and conduit segments. The corporate segment includes revenues and expenses that arise from general corporate activities."

For more on Fairholme, head to a recent interview with Berkowitz as well as notes from his CSIMA presentation.

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