American International Group Inc (AIG), Bank of America Corp (BAC) Cripple Bruce Berkowitz’ Q1 Returns

Shares performed particularly poorly in January, dipping by well over 10% after AIG announced an $800 million debt offering with a yield of 4.375%. Despite also missing  earnings estimates in the middle of February, American International Group Inc (NYSE:AIG) made up for most its January losses with a strong performance in February and March. That helped prevent Berkowitz’ performance from being far more dreadful, and was also good news for other investors, which include billionaires D.E Shaw and Larry Robbins.

Bank of America Corp (NYSE:BAC) was Berkowitz’ second-largest position, as he held over 108.12 million shares in the investment bank. Like AIG, Bank of America Corp (NYSE:BAC) endured a horrid January, falling by more than 15%. Unlike AIG however, Bank of America made little headway in making up for those losses over the course of the next two months, finishing the quarter down by 13.69%. Bank of America Corp (NYSE:BAC)’s January tumble was the result of its latest earnings release, in which it reported a 14% dip in quarterly revenue. The Federal Reserve’s annual Stress Test did it no favors either, as it chided Bank of America for failing to effectively map out its capital plans. Billionaire Ken Fisher had the second-largest position in Bank of America after Berkowitz, though his exposure to the stock was far less, at just 1.55% of his portfolio.

Sears Holdings Corp (NASDAQ:SHLD) was Berkowitz’ third-largest position, consisting of 32.97 million shares. The famed retailer, now being run by Edward Lampert of ESL Investments, had a huge first quarter, soaring by 25.47%, though it remains a small-cap company. That continued to build upon a strong rebound from its early October low, when it sank to less than $25. Shares are now up over 70% in the six months since. Regarding Sears Holdings Corp (NASDAQ:SHLD), Berkowitz recently released a case study summary ahead of a full presentation on the retailer to be presented at a later date, citing its massive commercial real estate space as being a very valuable commodity, while claiming that the lackluster holiday sales and store closures were actually positive developments. Berkowitz was the largest shareholder among funds we track, while Murray Stahl’s Horizon Asset Management is another long-term shareholder of Sears Holdings Corp (NASDAQ:SHLD).

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