Berkowitz Betting Big on AIG, MBIA

July 14, 2010 · Leave a Comment

(Dealbook)

Fairholme Capital Management gave shares of the bond insurer MBIA and the bailed-out insurer American International Group a boost on Tuesday after the investment firm run by Bruce Berkowitz disclosed new stakes in the companies.

Fairholme held an 11.1 percent stake in MBIA and a 24.3 percent stake in A.I.G. as of June 30, Reuters reported, citing Securities and Exchange Commission filings. Fairholme Capital, an investment adviser with about $16.5 billion under management as of March, had reported an 18.9 percent stake in A.I.G. in May.

Fairholme is the largest private shareholder in A.I.G. The federal government owns nearly 80 percent of the insurer after pledging $182.3 billion in bailout funds. The Fairholme stake is a percentage of the float excluding the government’s interest. Fairholme’s stake in MBIA also makes it the second largest shareholder in the bond insurer, behind private equity firm Warburg Pincus.

Shares of MBIA were up 10.1 percent to $7.08 and A.I.G.’s shares were up 6.3 percent to $37.82 during early afternoon trading on the New York Stock Exchange.

Categories: News
Tagged: MBIA, aig, berkowitz, fairholme

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