It looks like Bruce Berkowitz
has responded to the stampede of investors streaming out of his funds because of bad bets on financial stocks. Bloomberg reports
that Berkowitz recently sold his stakes in Goldman Sachs Group Inc. and Morgan Stanley while holding on to Citigroup Inc. and Bank of America Corp.
In June Morningstar estimated that $2.5 billion had flowed out of Fairholme
within the past three months [see MFWire.com, 6/17/2011
Fairholme held no Goldman Sachs or Morgan Stanley shares as of Aug. 31, according to a filing
with the U.S. Securities and Exchange Commission. Berkowitz, whose fund fell 21 percent this year through last week, also raised his Bank of America stake to 81.9 million shares as of Aug. 31 from 77.3 million as of May 31, and dropped his Citigroup stake almost two percent to 20.8 million shares. The stocks have fallen about 48 percent and 33 percent in 2011, respectively.
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