Bruce Berkowitz Ups His Bet On MBIA, Now Owns 16.5% Of The Company

A tipster pointed out an interesting release regarding MBIA today, showing Bruce Berkowitz and his Fairholme Capital Management increasing their stake in MBIA.

The 13G filing shows Berkowitz’s stake rising to 16.5% of shares outstanding in MBIA, owned via Fairholme Capital Management.

From the 13G:

33,032,600 shares of Common Stock of MBIA Inc. are owned, in the aggregate, by various investment vehicles and accounts managed by Fairholme Capital Management, L.L.C. (“FCM”)of which 20,501,100 shares are owned by The Fairholme Fund, a series of Fairholme Funds, Inc.  Because Bruce Berkowitz, in his capacity as the Managing Member of FCM or as President of Fairholme Funds, Inc., has voting or dispositive power over all shares beneficially owned by FCM, he is deemed to have beneficial ownership of all such shares so reported herein.

It has been suggested that MBIA will be a huge winner in the mortgage putback crisis gaining payouts from banks that misled MBIA about the securities it insured.

Here’s the presentation detailing why MBIA will be a big winner from the mortgage bond insurer fallout >

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