Bloomberg correction here
Fairholme Limits Fannie-Freddie Disclosures in Filing
By Zachary Tracer Nov 17, 2014 3:59 PM CT
(Corrects headline and first sentence of story published Nov. 14 to remove reference to Fairholme selling Fannie Mae and Freddie Mac common securities.)
Bruce Berkowitz’s Fairholme Capital Management LLC limited disclosures about the firm’s common and preferred stakes in Fannie Mae and Freddie Mac.
The investment firm opted to stop disclosing its holdings in the companies because U.S. Securities and Exchange Commission rules don’t require them to be listed, the firm said in today’s Form 13F filing.
Fairholme’s investments in Fannie Mae and Freddie Mac were concentrated in the preferred securities, previous filings show. Investments in the firms accounted for about 15 percent of the portfolio at Berkowitz’s main Fairholme Fund, according to a July 29 letter.
Investors in Fannie Mae and Freddie Mac suffered losses after losing a legal bid to force the bailed-out companies to share profits with private holders. The $7.85 billion Fairholme Fund fell 5.7 percent in the third quarter, its worst decline since 2011.