Go!
There is no definitive "A-list" roster of superstar value investors. But if there were, you'd undoubtedly see names such as Warren Buffett, Bruce Berkowitz, Bill Nygren, Charlie Dreifus, and Mario Gabelli. But there are lots of other starts in the sky. For example, which of these fund managers has delivered a cumulative +150% gain since the inception of his fund 9 years ago, compared to a -28% return for the S&P 500?

A.)  Abe Froman
B.)  Bruce Berkowitz
C.)  Steven Cohen
D.)  David Tepper
E.)  Edward Lampert

Published: April 29, 2009

The correct answer is      (B.) Bruce Berkowitz

Bruce Berkowitz is the lead manager of the Fairholme Fund, which has delivered a cumulative gain of +150% since inception 9 years ago. By comparison, the S&P 500 has backtracked -28% over the same time frame.

When asked recently to name the one key metric that he uses to evaluate investments, Berkowitz didn't hesitate to say "it's all about the amount of cash a company generates that can be passed to owners in relationship to the price."

Lately, he has plowed more than 50% of his fund's assets into health-care (particularly big pharma), aerospace and defense. His rationale is that there is ultimately nothing more important than the health and well-being of our families, and defense and health-care spending eat up a large percentage of the federal budget.

His largest portfolio holding is Pfizer (NYSE: PFE), and recent buys include Boeing (NYSE: BA), General Dynamics (NYSE: GD), and Northrop Grumman (NYSE: NOC).

Golf has Tiger Woods, novelists have Tom Clancy, and the investment community has these celebrities -- they are at the pinnacle of their craft. And not surprisingly, some money managers have amassed prodigious gains over the years for their shareholders. Thanks to regulatory filings, interviews and shareholder reports, we can look over their shoulders and see where these elite investors are currently finding the most promising opportunities.

Of course, any list must begin with Warren Buffett. But in his latest issue of the Half-Priced Stocks newsletter, StreetAuthority editor Nathan Slaughter profiles four money managers who have used their own methodologies and insights to produce double-digit returns in an age when other investors are losing their shirts. Not only does Nathan explain what makes these managers tick, he provides a list of their favorite picks. To learn the names of these managers (and their favorite stocks), and to learn more about Half-Priced Stocks, please visit this link.

Want to answer more trivia questions? Visit our archives here!



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