Fairholme is down, but not nearly as much as the overall market. Energy stocks have energized the fund's returns for years. But now, Fairholme's lead manager, Bruce Berkowitz, a dyed-in-the-wool value investor, thinks it's time to take some of the chips off the table.
So he's been trimming his large holding in Canadian Natural Resources and moving some of the proceeds into the beaten-down health sector. At last report, Fairholme owned shares of WellCare Health Plans, a provider of managed-care services, and drug giant Bristol-Myers Squibb. Berkowitz hints that more health-care stocks will show up when Fairholme releases an updated list of the stocks it holds in its portfolio.
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