Bruce Berkowitz Q1 2026 Portfolio — 80% Concentrated in JOE, KHC Initiated
Fairholme Capital Management filed its Q1 2026 13F. JOE dominates the portfolio at 79.7%, while five positions — CF, OXY, ET, TGT, and NRP — were fully liquidated. KHC and HOMB were newly initiated.
- Berkowitz held JOE at 79.7% ($1.2B) in Q1 2026, with total AUM of $1.5B across 10 positions
- Five names — CF, OXY, ET, TGT, NRP — were fully exited; KHC was newly initiated
Bruce Berkowitz's Fairholme Capital Management reaffirmed its extreme concentration strategy in the Q1 2026 13F filing, maintaining JOE as its top holding at $1.2B (79.7% of the portfolio). Five positions — CF, OXY, ET, TGT, and NRP — were fully exited, while KHC ($2M) and HOMB ($325,853) were newly initiated. Total AUM stands at $1.5B across just 10 holdings.
Top 5 Holdings — Q1 2026
Q1 2026 Key Portfolio Moves
The most striking feature of this filing is that JOE (The St. Joe Company) accounts for approximately 80% of the entire portfolio. While JOE's weighting edged down roughly 1 percentage point from the prior quarter, the $1.2B absolute position size signals that Berkowitz's long-term conviction in the Florida real estate development theme remains firmly intact. The second-largest holding, EPD ($206M, 13.6%), reflects a deliberate positioning in energy infrastructure for stable dividend cash flows.
- JOE: Weighting trimmed slightly (-1%), $1.2B maintained — Core conviction bet at 79.7% of portfolio, long-term thesis unchanged
- KHC: New position initiated at $2M — Contrarian entry into an undervalued consumer staples name, classic Berkowitz value investing
- EPD: Position held at $206M (13.6%) — Continued focus on energy infrastructure dividend income
- BRK: Position increased +5% to $24M — Indirect expression of confidence in Buffett's portfolio
- CF, OXY, ET, TGT, NRP: Full exits totaling ~$13M — Energy and retail positions cleared, concentration deepens
On the sell side, Berkowitz executed a broad sweep across energy and consumer holdings. Five names were removed entirely: CF (fertilizers), OXY (crude oil), ET (energy pipelines), TGT (retail), and NRP (natural resources). In contrast, the Berkshire Hathaway (BRK) stake was increased by 5% to $24M, and OZK was trimmed up by 1%. The newly initiated KHC position is modest at $2M, but its value-oriented consumer staples profile is consistent with Berkowitz's trademark contrarian approach.
Sustainability of the Ultra-Concentrated Strategy
Berkowitz's portfolio is structurally extreme — JOE and EPD alone account for roughly 93% of total assets. The pace at which JOE can unlock value through its Northwest Florida real estate development cycle will be the decisive driver of fund performance. The full liquidation of energy and retail names can be read as a defensive consolidation amid macro uncertainty, while the small KHC initiation may be an early signal of a new value discovery in progress. Going forward, any shift in JOE's weighting and the addition of new positions will be the key indicators to watch for a potential strategy pivot.
Frequently Asked Questions
What new positions did Bruce Berkowitz initiate in Q1 2026?
Berkowitz initiated two new positions in Q1 2026: KHC (Kraft Heinz, $2M) and HOMB ($325,853).
What was the biggest portfolio change for Bruce Berkowitz in Q1 2026?
The most significant change was the full liquidation of five positions — CF, OXY, ET, TGT, and NRP. Simultaneously, his Berkshire Hathaway (BRK) stake was increased by 5% and KHC was newly initiated.
What is Bruce Berkowitz's largest holding?
As of Q1 2026, his largest holding is JOE (The St. Joe Company), valued at $1.2B and representing 79.7% of the total portfolio.
What is Fairholme Capital Management's total AUM?
Based on the Q1 2026 13F filing, Fairholme Capital Management's total AUM is approximately $1.5B, held across just 10 positions.
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