Berkowitz Keeps Buying Financials

Add another big-name financial to the portfolio of top fund manager Bruce Berkowitz: Morgan Stanley.

Berkowitz has built up a stake of close to 2% in Morgan Stanley, whose shares he started buying last quarter, he tells Dow Jones Newswires. The shares, which represent somewhere between 4% and 5% of his Fairholme Fund’s portfolio, are another sign that Berkowitz is quite bullish on beaten-down financials. “While we don’t know how much money we will make for shareholders, we believe we aren’t going to lose money with these institutions,” Berkowitz said. His fund recently disclosed new or increased stakes in AIG and MBIA, and also holds shares of Bank of America and Citigroup.

Berkowitz also said a double-dip recession is possible, but not probable, telling Dow Jones that the “nature of recovery [is] to have fits and starts.” He also said that “it has never been a good idea to bet against the United States and its people.”

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