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Berkowitz's Case for MBIA

Fairholme manager deepens commitment to financials with stake in troubled bond insurer.

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Fairholme Capital, advisor to the  Fairholme Fund (FAIRX), has filed a schedule 13-G with the SEC showing it owns nearly 23 million shares of  MBIA (MBI). That's big news for MBIA shareholders, but hardly earth-moving for Fairholme's. The $150 million stake equates to 11% of MBIA's market cap, but doesn't quite reach a 1% position in the $15 billion Fairholme.

Berkowitz spoke with Morningstar Wednesday, spelling out his case for MBIA.

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