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Fairholme is closing 3 of its funds to new investors as of the end of February. It's not about...

Fairholme is closing 3 of its funds to new investors as of the end of February. It's not about heavy inflows; instead Bruce Berkowitz is fed up with outflows and prefers a smaller, core group of investors who understand his deep-value process. Berkowitz might also be having trouble finding investments, having narrowed his holdings to basically just AIG, SHLD, BAC, JOE, CIT, LUK, and MBIA (GGP was sold last night).
Comments (7)
  • With so few core holdings it would be easy for existing shareholders to just mimic the holdings directly and forego the management and cost fees.
    30 Jan 2013, 05:31 PM Reply Like
  • Until Berkowitz does his classic 180° turn (i.e. Pfizer).

     

    He is harder to mimic than it seems.
    30 Jan 2013, 08:47 PM Reply Like
  • It's no wonder there have been big outflows. Performance has been very poor over the last 3 years.
    30 Jan 2013, 06:24 PM Reply Like
  • It has more to do with Morningstar causing lemmings to jump in to the fund, and jump out when the fund drops, 10 year chart is really good.
    30 Jan 2013, 06:27 PM Reply Like
  • Yeah, his nearly 40% return in 2012 was pathetic.
    30 Jan 2013, 08:48 PM Reply Like
  • He loves that baby Berkshire Hathaway.
    31 Jan 2013, 05:50 AM Reply Like
  • The real reason is probably he doesn't make enough money. Who are they kidding?
    31 Jan 2013, 11:14 AM Reply Like
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