Top 5 Stocks in Bruce Berkowitz Portfolio

1. St Joe Co. (NYSE:JOE)

Number of shares as of March 31, 2023: 24,141,448
Share of Fairholme portfolio as of March 31, 2023: 83.08%
Number of Hedge Fund Holders: 13

St Joe Co. (NYSE:JOE) develops and manages real estate assets, with projects concentrated in Northwest Florida. Fairholme (FAIRX) first bought 18.45 million shares of JOE in Q1 2009. The holding remained stable at around 10 million shares until FAIRX went all in late 2020, pushing its holding of the stock to approximately 24% and consisting of over 80% of the fund’s assets under management. In the latest filing, FAIRX trimmed 0.60% of the St Joe Co. (NYSE:JOE) stake (about 147,000 shares), reducing the stock’s percentage of FAIRX portfolio to 83.08%.

According to Insider Monkey’s Q1 2023 database, 13 hedge funds were bullish on St Joe Co. (NYSE:JOE), compared to 15 funds in the prior quarter. Bruce Berkowitz’s Fairholme (FAIRX) is the largest stakeholder of the company, with 24.14 million shares worth $1 billion.

Praetorian Capital made the following comment about The St. Joe Company (NYSE:JOE) in its first quarter 2023 investor letter:

“The St. Joe Company (NYSE:JOE) owns approximately 175,000 acres in the Florida Panhandle. It has been widely known that JOE traded for a tiny fraction of its liquidation value for years, but without a catalyst, it was always perceived to be “dead money.”

Over the past few years, the population of the Panhandle has hit what I believe to be a critical mass where it now has a center of gravity that is attracting people who want to live in one of the prettiest places in the country, with zero state income taxes and few of the problems of large cities.

The oddity of the current disdain for so-called “value investments” is that many of them are growing quite fast. I believe that JOE will grow revenue at 30% to 50% each year for the foreseeable future, with earnings growing at a much faster clip. Meanwhile, I believe the shares trade at a single-digit multiple on Adjusted Funds from Operations (AFFO) looking out to 2024, while substantial asset value is tossed in for free…” (Click here to read the full text)

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