One of Bruce Berkowitz’s most controversial positions is MBIA. This is the bond insurance company which has had its ratings dramatically reduced and is engulfed in several significant lawsuits which should have a material impact on the business, and in turn the equity of the company. Below is Berkowitz’s investment thesis on the company. At T&T Capital Management we have investments in MBIA bonds, a large equity position in Assured Guaranty (AGO), which is similar to MBIA, and some very small sold put options on MBIA itself. Berkowitz is very big into MBIA’s equity, debt, and formerly he owned some AGO but I believe that he has since sold it most likely in response to redemptions. Enjoy!
http://www.fairholmefunds.com/sites/default/files/120827%20Case%20Study%20IV%20%20MBIA%20v7.0.pdf