Tags: bruce | berkowitz | recovery | morningstar

Morningstar: U.S. Recovery Only Just Beginning

Wednesday, 13 Jan 2010 03:57 PM

The economy recovery has barely begun, said Bruce Berkowitz, the newly named domestic fund manager of the year for Morningstar.

“I’m optimistic about the economy — we are in the spring of a recovery,” Berkowitz tells CNBC.

Berkowitz, which runs the Fairholme Fund, is fond of the health care and financial sectors.

The fund’s top five holdings are St. Joe, Hertz, Sears, Humana and AmeriCredit.

“There may still be frost here and there, but the markets are thawing out and we have some wonderful companies in the portfolio that still remain quite cheap in relationship to the cash that they generate for their owners,” he said.

Berkowitz also recently bought Winthrop Realty, a real estate investment trust, or REIT.

“They’re a small REIT, very smart operator…and now is the time,” he said.

“It always pays to be greedy when most are fearful. They’re announcing some very astute acquisitions of debt. There’s a long way to go" for the stock.

The Fairholme Fund has increased by more than 35 percent during the past year.

Major policymakers said the global economy is rebounding from the recession, Reuters reported.

“There is a confirmation of the progressive normalization of the economy and of the fact that at a global level we are on a recovery mode," said European Central Bank President Jean-Claude Trichet.

Dennis Lockhart, the Atlanta Fed chief, said 2010 will be an improvement over last year, but predicts recovery will be slow, the Atlanta Journal-Constitution reported.

Lockhart said that although there are many risks, there is “accumulating evidence that recovery is gaining traction.

“I expect a better overall year in 2010. But it will not be a gangbuster recovery. The economy is on the mend, but it’s not yet free of drags or risk.”

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The economy recovery has barely begun, said Bruce Berkowitz, the newly named domestic fund manager of the year for Morningstar. I m optimistic about the economy we are in the spring of a recovery, Berkowitz tells CNBC. Berkowitz, which runs the Fairholme Fund, is fond...
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2010-57-13
Wednesday, 13 Jan 2010 03:57 PM
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