Founder of Fairholme, Morningstar's U.S. stock manager of the decade, later known for extremely concentrated contrarian bets.
Life story
Bruce Berkowitz grew up in Chelsea, Massachusetts. His father, Barney Berkowitz, was a part-time taxi driver who owned a convenience store; his mother, Hennie, was a homemaker. He attended Chelsea High School, graduated from Beaver Country Day School and earned a cum laude economics degree from the University of Massachusetts Amherst in 1980. His exact birth year is not stated in public sources.
How they got started
After college Berkowitz worked at a consulting firm in Cambridge, joined Merrill Lynch in London in 1983, moved to Lehman Brothers in 1986 and became a senior portfolio manager in its New Jersey office in 1989. In 1993 he became a managing director at Smith Barney.
In 1997 he founded Fairholme Capital Management, named after the last street he had lived on. The Fairholme Fund excelled in the 2000s, and Morningstar named him Domestic-Stock Fund Manager of the Year for 2009 and of the decade. Fund assets peaked above $20 billion in 2011.
Investment style
Berkowitz puts large stakes in very few positions and buys hated companies most investors are fleeing. He cites his successful 1990s bet on Wells Fargo as a template: buy a troubled financial cheaply and wait patiently. When positions fall he often adds rather than sells.
This concentration and conviction produced big wins and steep drawdowns. He is also willing to get involved in governance — he sat on the boards of St. Joe and Sears.
Best decisions
The 2000s record
On the strength of the Fairholme Fund's 2000s record, Morningstar named Berkowitz Domestic-Stock Fund Manager of the Year for 2009 and of the decade.
Post-crisis financials (2011–2012)
Berkowitz bet heavily on AIG, Bank of America and other financials despite widespread skepticism. After a terrible 2011, the fund rose about 30% in the first quarter of 2012 — he admitted to "premature accumulation" but did not abandon the bet.
Biggest mistakes
2011: down 32%
Concentration in AIG and other financials cost the Fairholme Fund about 32% in 2011. Investors pulled roughly $6.8 billion that year and assets shrank sharply — many shareholders missed the later rebound.
Sears
Berkowitz was the largest outside shareholder of retailer Sears and sat on its board in 2016–2017. Sears filed for bankruptcy in 2018 — the bet did not work out.
Today
In 2026 the Fairholme Fund is still operating, but far smaller than at its 2011 peak. Its central long-term holding in recent years has been St. Joe, a Florida land and real-estate company; as its largest shareholder Fairholme forced a management change there in 2011. Berkowitz lives in Coral Gables, Florida, and funds art projects.
What to learn from following the portfolio
- Fairholme's portfolio is extremely concentrated — the fate of one or two companies decides the result. Copying it is high-risk.
- Berkowitz often adds to falling positions — an increased stake signals his conviction, not that all is well.
- His historical favorites — insurers, banks, and Fannie Mae/Freddie Mac — are usually not halal; real-estate companies depend on their debt levels. Check each position's halal status in the Portfolio tab.
- 13F data lags up to 45 days and shows only long U.S. stocks; preferred shares and bonds may not be fully visible.
An introduction based on public sources — not investment advice. Spotted an error? Let us know.