July 13 (Bloomberg) -- MBIA Inc., owner of the largest bond insurer, rose the most in the Russell 1000 index after Fairholme Capital Management LLC disclosed an 11 percent passive stake in the company.
Separately, William C. Fallon was named interim chief executive officer of National Public Finance Guarantee, the company’s municipal-bond insurance unit, succeeding Thomas G. McLoughlin, who is resigning to go to UBS Financial Services, MBIA said today in a statement distributed by Business Wire. Fallon is president and chief operating officer of Armonk, New York-based MBIA.
MBIA jumped 74 cents, or 12 percent, to $7.17 in New York Stock Exchange composite trading, the biggest increase since March 24 and the largest percentage gain in the Russell 1000. The shares have risen 80 percent this year.
The stock traded as high as $73.31 in December 2006 before plunging as low as $2.29 in March 2009 amid losses on the company’s mortgage-debt guarantees.
Fairholme, the Miami-based investment firm run by Bruce Berkowitz, reported its MBIA investment yesterday in a filing with the U.S. Securities and Exchange Commission. Berkowitz is the second-biggest holder of MBIA stock after Warburg Pincus LLC, according to data compiled by Bloomberg. Berkowitz was named the U.S. domestic stock fund manager of the decade in January by Chicago-based Morningstar Inc.
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