Berkowitz to Take Investor Questions After Fannie-Freddie Losses

Bruce Berkowitz has scheduled a conference call to address investors’ questions after his Fairholme Capital Management posted losses on holdings including Fannie Mae and Freddie Mac.

The money manager will hold the hour-long call on Feb. 3, Miami-based Fairholme said Thursday in a statement. Questions can be submitted by e-mail.

Fairholme Fund investors lost 2.7 percent last year, including dividends, while the Standard & Poor’s 500 Index posted a total return of 13.7 percent. Berkowitz typically picks securities that he believes are undervalued by other investors. American International Group Inc. and Bank of America Corp. are among the fund’s top holdings, along with bets on Fannie Mae and Freddie Mac.

“We invest when we have compelling and quantifiable reasons that support a valuation that is far higher than the market currently suspects,” Berkowitz said in the statement.

Berkowitz, who was named U.S. domestic stock-fund manager of the decade in 2010 by Morningstar Inc., has turned to such events in the past in an effort to reassure investors. In 2011, he arranged for Bank of America Chief Executive Officer Brian T. Moynihan to take questions on a public call after the lenders’ shares plunged. In March 2009, he peppered then-Pfizer Inc. CEO Jeffrey Kindler with questions about the prospects for the firm, Berkowitz’s biggest holding at the time.

The public may submit questions to Ask@fairholme.net and the company said it will make details available on its website about a live stream of the call. Fred Fraenkel, Fairholme’s president and chief research officer, will also participate.

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