Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Star fund manager ups stake in AIG

By Annalyn Censky, staff reporter


NEW YORK (CNNMoney.com) -- So-called "fund manager of the decade" Bruce Berkowitz has upped his stake in AIG, to the point that his $14 billion stock fund owns nearly a quarter of the troubled insurance company.

The Fairholme Fund, which Berkowitz manages, announced in a filing with the Securities and Exchange Commission late Monday that the fund held 32.8 million shares, or 24.3% of AIG (AIG, Fortune 500) shares not owned by the government, as of June 30 -- an increase of 7.3 million shares since April 30.

Fairholme (FAIRX) has the second largest stake in AIG after the U.S. government, which took ownership of the collapsing insurance giant when it issued what was originally an $85 billion bailout in September 2008. That government's assistance later rose to $182 billion.

Berkowitz, who was crowned Morningstar's "U.S. stock manager of the decade" earlier this year, has been bullish on financial shares, which he has predicted will stage a major rally.

After Goldman Sachs's (GS, Fortune 500) stock fell 24% after the SEC filed its fraud case against the bank in April, he called the stock a great buy. And earlier this year, he bought $700 million worth of Citi (C, Fortune 500), which is still swimming in toxic assets.

Berkowitz declined to comment on Monday's SEC filing. To top of page

Index Last Change % Change
Dow 17,660.71 9.45 0.05%
Nasdaq 4,717.09 -8.55 -0.18%
S&P 500 2,050.63 -0.49 -0.02%
Treasuries 1.75 -0.04 -2.07%
Data as of 10:44pm ET
Company Price Change % Change
Bank of America Corp... 14.05 -0.08 -0.57%
Chesapeake Energy Co... 5.71 0.06 1.06%
Freeport-McMoRan Inc... 11.29 -0.51 -4.32%
Apple Inc 93.24 -0.38 -0.41%
General Electric Co 29.89 -0.18 -0.60%
Data as of 4:01pm ET
Sponsors

Sections

Sumner Redstone, 92, was deposed on videotape Thursday ahead of a trial Friday that will determine his mental competency. It could have implications for Viacom and CBS. More

America has 5.4 million job openings and 8 million people looking for work. The problem is most people hunting for jobs don't have the right skills. More

Gogo has a faster satellite wifi system coming to carriers, and it might be good enough to make people stop complaining. More

Visa says new software will allow consumers to check out with chip cards as fast as swiping a card with magnetic strip. More