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.
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.
Michael Breen does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.