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Berkowitz: We're Entering a Constructive Period

The Fairholme manager on looking forward to the next decade; plus, comments on the fund's CIT and Winthrop stakes.

Berkowitz: We're Entering a Constructive Period
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Michael Breen: Perhaps you can enlighten us on some positions you just added in a various set of bonds with a CIT group?

Bruce Berkowitz: Right. CIT has come out of bankruptcy, and from our last report we were buying bonds in the bankruptcy. CIT has been purified in bankruptcy; they now have good tangible book value with money good. So we bought high-yield securities, which by now have either become new bonds or equity, a combination of new bonds and equity in the company. I think on our last report you're seeing the beginning of that process.

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Michael Breen has a position in the following securities mentioned above: FUR. Find out about Morningstar’s editorial policies.