For investors seeking significant exposure to Berkshire Hathaway, Inc. (NYSE: BRK.A or BRK.B) as part of their overall stock portfolio, the top five mutual funds whose holdings include a high percentage of Berkshire Hathaway stock are the Sequoia Fund, the BBH Core Select N Fund, the Weitz Partners III Opportunity Fund, the Clipper Fund and the Fidelity Contrafund.
The Sequoia Fund
The Sequoia Fund, established in 1970, seeks long-term growth of capital. This fund is focused on common stocks that the fund manager believes are undervalued at the time of purchase and that have substantial growth potential. Generally, the Sequoia fund invests in the stocks of U.S. companies, though it may also invest up to a total of 15% of its assets in foreign securities.
This fund has an expense ratio of 1.1%. It has a five-year annualized return of nearly 20%. Together, class A and class B shares of Berkshire Hathaway make up over 11% of the portfolio's assets. Another top holding of the fund is Valeant Pharmaceuticals International, Inc.
BBH Core Select N Fund
The BBH Core Select N Fund was established in November 1998 and is managed by private bankers. This fund also seeks long-term capital growth. A minimum of 80% of the fund's net assets are invested in publicly traded equities – for the most part in U.S. stocks. Long-term capital gains are declared annually. Dividends and short-term capital gains are declared semi-annually.
The BBH Core Select fund has an expense ratio of 1%. It offers a dividend yield of 0.6%. The five-year annualized return for the fund is 14.8%.
Class A shares of Berkshire Hathaway are the fund's top holding, at nearly 7% of asset allocation. Other top holdings for the fund include Comcast and U.S. Bancorp.
Weitz Partners III Opportunity Fund
The primary goal of the Weitz Partners III Opportunity Fund is capital appreciation. Partners III is a multicap fund that invests in a wide range of equities that the fund manager believes offer the best prospects for profit. The fund takes both long and short positions in stocks, as well as short positions in exchange-traded funds (ETFs), in accordance with its investment goals and the market evaluation by the fund's manager, Wallace Weitz.
This fund has an expense ratio of 1.2%. Its five-year annualized return is approximately 15%. Class B shares of Berkshire Hathaway hold the most weight in this fund, at just over 7% of assets. Other top holdings for the fund include Liberty Global PLC Class C and Liberty Media Corporation Class C.
The Clipper Fund
This fund aims to provide investors with long-term capital preservation and growth. These objectives are achieved by investing in stocks that the fund manager, Christopher Davis, considers to be substantially undervalued. The fund manager looks to identify companies with current share prices that are not reflective of their long-term intrinsic value. The fund invests in common stock, preferred stock and stock options.
The Clipper Fund has an expense ratio of 0.75%. If offers a dividend yield of 0.4%. The five-year annualized return for the fund is 15.5%.
Class A shares of Berkshire Hathaway are the top holding for this fund, accounting for 9% of the fund's assets. Other major holdings are American Express and Bank of New York.
The Fidelity Contrafund seeks capital appreciation by investing in common stocks of companies that the fund manager believes are not accurately valued, and that hold outstanding growth potential – especially firms that predominate their industries in terms of revenues and growth potential. The fund manager, William Danoff, seeks to identify good potential growth stocks and value stocks.
The expense ratio for the fund is 0.64%. It offers a dividend yield of 0.21%. The five-year annualized return for the fund is 17%.
Class A shares of Berkshire Hathaway hold the most weight in this fund, at 4.4%. Two other primary holdings for the fund are Apple and Facebook.