Bloomberg article: Berkowitz leads stock pickers hitting bottom

[S2S]

http://www.bloomberg.com/news/2011-06-13/berkowitz-leads-top-stock-pickers-hitting-bottom-as-growth-slows.html

 

Bruce Berkowitz, Kenneth Heebner and Bill Miller, three of the best-known U.S. stock pickers, are competing for last place this year after their bets on an economic expansion backfired.

Funds run by Berkowitz of Fairholme Capital Management LLC, Heebner of Capital Growth Management LP and Miller of Legg Mason Inc. (LM) are the three worst performers among large diversified U.S. mutual funds in 2011, according to data from Chicago-based Morningstar Inc. The funds lost 11 percent to 12 percent through June 9, compared with a gain of 3.4 percent for the Standard & Poor’s 500 Index.

...

Berkowitz’s $14.8 billion Fairholme Fund had 74 percent of its equity holdings in financial stocks as of Feb 28, Morningstar data show. The fund fell 12 percent through June 9, ranking it last among 870 diversified U.S. stock funds with at least $500 million in assets.

Wow.

 

My takeaway, I suppose, is two-fold: (1) extreme concentration will come back to bite you no matter how smart you (think) you are and (2) now might be a good time to buy financials. Cheers!  ;D

[Guest VAL9000]

It's a long game...  six-month return measurements don't mean much over a lifetime of investing.

 

I agree on the financials front.  Time to get hawkish.