Shares of Goldman Sachs (GS) are up more than $1, almost 1%, at $150.68, on a report that Bruce Berkowitz, the manager of the $16.5 billion Fairholme Fund, took a stake in the company.
Berkowitz, speaking today at an investment conference in Pasadena, California, said he has purchased securities of Goldman Sachs.
Bloomberg: “We have a giant stake in Goldman Sachs now,” he said. “It’s the first time I’ve told anyone.”
Berkowitz’s stock picking strategy is based on co.’s whose pps is cheap based on their cash flow.
The Fairholme Fund, started by Berkowitz in December 1999, has returned an average of 13% a year in the past decade.