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Berkowitz's Fairholme Fund Reduces Fannie Mae-Freddie Mac Stakes

  • Preferred shares are still an excellent investment, firm says
  • Fund is among those betting on U.S. release of mortgage giants
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Photographer: Jacob Kepler/Bloomberg

Investor Bruce Berkowitz, one of the major holders of Fannie Mae and Freddie Mac preferred shares, has reduced his stakes in the two U.S.-controlled mortgage giants.

Berkowitz’s Fairholme Fund cut its Freddie Mac holdings to 8.4 percent of net assets as of June 30 from 15.7 percent six months earlier, according to the fund’s semi-annual report released Monday. The fund’s Fannie Mae stake dropped to 8.2 percent of total assets from 14.8 percent.