Fairholme topped its domestic peers on an annual basis for nearly all of the past decade.
Most mutual funds, including Fairholme, are intended to be held for the long term.
He owned this stock before in Fairholme Focused Income Fund, but sold later.
The Fairholme funds were born, named after the London street, just west of posh Kensington, where Berkowitz lived.
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Take the Fairholme Fund, which was one of the few outliers where active management outperformed over the long term.
Berkowitz and Charles Fernandez, the Managing Member and President, respectively, of Fairholme Capital Management, a company that owns 29% of St.
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Joe (NYSE: JOE), a stock that has long been debated between Bruce Berkowitz of Fairholme Capital and David Einhorn of Greenlight Capital.
Joe shares after the spill, which have since rebounded as 29% owner Fairholme Funds won a struggle for control of the firm.
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The company is also famous for having Fairholme investor Bruce Berkowitz as owner of 27.47% of its outstanding shares, which amounts to 7.1% of his total portfolio.
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Today, the Fairholme fund has more than 60% of assets in just its four largest holdings: AIG, Sears Holding, Bank of America and options in General Growth Properties.
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Likewise, Bruce Berkowitz has managed the Fairholme Fund since 1999.
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Fairholme fund more then doubled the market and returned 35.8%.
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Contrarian Fairholme (FAIRX) is best used as a core holding.
Fairholme Capital surfaced as a major holder in early 2011 with 38.5 million shares, a position the hedge fund run by Bruce Berkowitz has increased to 46.5 million, or 22%.
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How long are you willing to stick with holding the Fairholme Fund, especially if none of the reasons to sell a fund that were cited above seem to be evident in this case?
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General Growth Properties will be of special interest today as Bruce Berkowitz of Fairholme Capital sold off some of its stake to Brookfield Asset Management (NYSE: BAM) in mid-January, according to SeekingAlpha.
Outsized bets destroyed Berkowitz and Fairholme in 2011.
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Next January, when many policies are repriced at Lloyd's, the recovery of the market could start to reflect stiffer rates and terms in London, says Bruce Berkowitz, a partner at Fairholme Capital, an investment manager.
It also has the potential to be a problem for funds like Fairholme that hold a limited number of stocks (FAIRX holds just 20 stocks and seven bonds), but you need consider the average volume of each holding (aka liquidity) before viewing a concentrated portfolio as a red flag.
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