Bruce Berkowitz Is Extremely Bullish About Bank of America $BAC

Fairholme Capital’s Bruce Berkowitz spoke with Bloomberg Television today. He is extremely bullish about Bank of America (BAC) and thinks that it will outperform JP Morgan (JPM). Here is what he said:

FAIRHOLME (FAIRX) Bruce Berkowitz

“The investment process is about comparing what you give versus what you get.  So it’s the intrinsic value of an organization versus the stock market price.  I think Bank of America right now is the kicking boy for the whole real estate, residential mess. I think Brian Moynihan is doing a good job and will continue to do a good job.  I think they are head of the curve in reducing late fees.  They have some very great properties in terms of Merrill Lynch and BNA.  They are being killed for being patriotic, taking over Countrywide.  One day it will serve a good purpose of making loans.  It’s there.  They have a balance sheet.  They are selling below tangible book value.  They have 30,000 extra people working the residential mortgage issue to get it over as quickly as possible.  They are making all the right moves.  The price of Bank of America reflects an extreme pessimism that JPMorgan’s price does not have.  When you compare what you have to pay to what you get, I’m with Bank of America.”

Berkowitz had more than $1.2 Billion invested in BAC at the end of March. Here are the top funds with the largest bets on BAC:

1.) Paulson & Co $1,648,047

2.) Fairholme (Fairx) $1,235,007

3.) Eton Park Capital $281,370

4.) Paulson & Co $230,100 (W Exp 01/16/19)

5.) Appaloosa Management Lp $229,487

6.) Edinburgh Partners $220,216

7.) Legg Mason Capital Management $200,945

8.) Adage Capital Management $192,428

9.) Brookside Capital $157,347

10.) King Street Capital $133,400

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!