GoodHaven loads up on Microsoft and other tech stocks.
GoodHaven's GOODX first portfolio-disclosure report is out, and one thing is clear: Larry Pitkowsky and Keith Trauner, the former portfolio comanagers of Fairholme FAIRX who run the fund, are less enthusiastic about financials than is their former boss, Bruce Berkowitz.
The fund doesn't own one bank as of May 31, while Fairholme has big stakes in Citigroup C and Bank of America BAC. Both are trading near their respective 52-week lows.
GoodHaven's biggest financial-sector holding is subprime lender Walter Investment Management WAC, which accounts for 4.2% of assets. The fund also owns fund company Federated Investors FII (3.3% of assets). Berkshire Hathaway BRK.B, the one holding GoodHaven shares with Fairholme, occupies 1.9% of assets.
At 7% of assets, Microsoft MSFT is the largest holding in the fund as of May 31. This is notable because Fairholme has generally shied away from technology-sector stocks. The fund's other tech-sector holdings include Google GOOG and Hewlett-Packard HPQ.
GoodHaven has a big cash stake--53.2% of its assets are in cash--which also distinguishes it from Fairholme. Meanwhile, Fairholme's cash has dwindled to less than 10% of assets in recent months thanks to outflows.
Through July 15, GoodHaven is up 4.06% in the past three months. Meanwhile the S&P 500 is flat while Fairholme is down more than 8%.
For the full report, please click here.