Berkowitz's Fairholme Sells Citigroup, China Pacific

The $307 million Fairholme Allocation Fund(FAAFX) , however, added to holdings of Sears and Leucadia National Corp(LUK) , while also adding to existing warrants to buy shares of Bank of America, Wells Fargo(BAC) and JPMorgan Chase(JPM) .

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Fairholme's Berkowitz, Morningstar Manager of the Decade in 2010, got crushed in 2011 after betting heavily on beaten-down financials. The Fairholme Fund has bounced back strongly in the first quarter, however, literally going from worst to first.

Fairholme's mutual funds represent the vast majority of the assets managed by Fairholme Capital Management, which will likely make its 13F filing of first calendar quarter holdings shortly before the 45-day deadline in mid-May.

A spokesman for Berkowitz declined to comment on firm investments.

-- Written by Dan Freed in New York.

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