Fannie Mae (FNMA)

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LINK

BERKOWIZ HAS COMPLETELY SOLD OUT OF MOST P SHARE SERIES

http://www.timelessinvestor.com/2018/05/03/bruce-berkowitzs-fairholme-fund-continues-to-trim-gses-preferred-stocks/

Berkowitz’s fund continued trimming its holdings in preferred shares of Freddie Mac and Fannie Mae. During the quarter, the fund sold 7,886,338 shares of Freddie Mac 8.375% fixed-to-floating preferred shares (FMCKJ.PFD) and 7,678,501 of Fannie Mae Series S preferred shares (FNMAS.PFD). The two trades chopped 9.78% of the portfolio in the aggregate.

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Freddie Mac, a major U.S. government-sponsored enterprise, invests in mortgage loans and mortgage-related securities. The company disclosed on Tuesday that strong competitive fundamentals and continued guarantee book growth contributed to $2.2 billion in comprehensive income for the quarter. CEO Donald Layton said the strong performance “demonstrated the increased stability of [Freddie Mac’s] earnings” and continued progress in its mission to create a “better housing finance system” for lenders, investors, families and taxpayers.

GuruFocus ranks Freddie Mac’s profitability 4 out of 10: although the company has expanding operating margins, Freddie Mac’s return on assets of 0.28% underperform 83% of global competitors. On the other hand, Fannie Mae has a slightly worse return on assets of 0.07%.

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https://www.gurufocus.com/StockBuy.php?GuruName=Fairholme+Fund

Fairholme Fund Latest Trades:

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)