Fairholme Fund Manager Berkowitz Bets on Sears

Bruce Berkowitz, who was named mutual-fund manager of the decade in 2010, has seen his Fairholme Fund lose 89% of its assets from its 2011 peak due to poor performance—but he hopes to turn things around with a major bet on the battered Sears Holdings Corp. This according to an article in The Wall Street Journal. The Fairholme Fund has lost 12.9% so far this year compared to the 9% gain in the S&P 500, the article reports. It adds that Berkowitz is “unapologetic” for the poor returns, saying that “he always has promised his investors ultra-concentrated, often contrarian bets […]

Liquidity Concerns Increasing for Fairholme Fund

The Fairholme Fund, which was launched in 1999 by Bruce Berkowitz, has seen investors pull out more than $16 billion over the past six years due to poor performance, an exodus that is raising liquidity concerns. This according to a recent article in The Wall Street Journal. Morningstar estimates show the large-cap value fund has “shed assets every month since March 2011” and is now a “shadow of its former self,” according to the article– which cites comments by Morningstar analyst Kevin McDevitt concerning the fund’s increased liquidity risk in the wake of steady outflows and forced sell-offs. McDevitt’s concern, […]