Manager of Fairholme Capital Management's
lauded Fairholme Fund
, Bruce Berkowitz
on Monday divulged that he's recently bought a sizable stake in American International Group
, as well as its convertible debt and bonds.
Berkowitz, who was named Morningstar's domestic stock picker of the decade, told BusinessWeek
that he's purchased over 13 million common shares of AIG and more than 20 percent of the firm's convertible debt.
Fairholme stared purchasing shares in the second half of 2009 “as we started to see cash flows of AIG turn positive,” Berkowitz noted to BusinessWeek. “It is still a good company with a good global brand.”
AIG stock benefited from the news that the company was selling its two largest non life-insurance businesses. AIG is shopping its AIA Group
and American Life Insurance Company
for a combined $51 billion.
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