Fairholme Fund's Strategic Moves: The St. Joe Co. Sees a -1.11% Portfolio Impact

This article first appeared on GuruFocus.

Bruce Berkowitz (Trades, Portfolio)'s Investment Philosophy and Recent Portfolio Adjustments

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Fairholme Fund (Trades, Portfolio) recently submitted its N-PORT filing for the first quarter of 2026, offering a glimpse into the strategic investment decisions made during this period. Managed by its founder, Bruce Berkowitz (Trades, Portfolio), the Fairholme Fund (Trades, Portfolio) has a storied history of success, achieving a 253% gain in the first decade after its inception in 1999, while the S&P 500 experienced losses. This portfolio is distinct from the broader portfolio under Bruce Berkowitz, which encompasses more accounts and funds. Berkowitz is known for his concentrated investment approach, focusing on companies with strong management and cash flow, guided by his motto: "Ignore the Crowd."

Summary of New Buy

Fairholme Fund (Trades, Portfolio) added a total of one stock during the first quarter of 2026. The most significant addition was:

Alliance Resource Partners LP (NASDAQ:ARLP), with 30,000 shares, accounting for 0.06% of the portfolio and a total value of $794,700.

Summary of Sold Out

Fairholme Fund (Trades, Portfolio) completely exited one holding in the first quarter of 2026, as detailed below:

Energy Transfer LP (NYSE:ET): Fairholme Fund (Trades, Portfolio) sold all 166,600 shares, resulting in a -0.25% impact on the portfolio.

Key Position Reduces

Fairholme Fund (Trades, Portfolio) also reduced its position in three stocks. The most significant changes include:

Reduced The St. Joe Co (NYSE:JOE) by 208,500 shares, resulting in a -1.28% decrease in shares and a -1.11% impact on the portfolio. The stock traded at an average price of $64.47 during the quarter and has returned 10.00% over the past three months and 19.78% year-to-date. Reduced Imperial Metals Corp (TSX:III) by 200,000 shares, resulting in a -3.67% reduction in shares and a -0.1% impact on the portfolio. The stock traded at an average price of C$10.31 during the quarter and has returned -45.00% over the past three months and -28.50% year-to-date.

Portfolio Overview

As of the first quarter of 2026, Fairholme Fund (Trades, Portfolio)'s portfolio included seven stocks. The top holdings were:

87.7% in The St. Joe Co (NYSE:JOE) 8.05% in Enterprise Products Partners LP (NYSE:EPD) 2.99% in Imperial Metals Corp (TSX:III) 0.86% in Bank OZK (NASDAQ:OZK) 0.23% in Federal National Mortgage Association Fannie Mae (FNMA)

The holdings are primarily concentrated in four of the eleven industries: Real Estate, Energy, Basic Materials, and Financial Services.

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