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Berkowitz’s Fairholme Faces $16 Billion In Withdrawals Over 6 Years, Morningstar Says
Understanding deep value stocks (picking out of favor stocks and, in BB case, under par bonds) and then executing deep value management (making buy/sell decisions as well as managing the turmoil that surrounds these out of favor securities) has been challenging for BB.
The typical investors today has a much shorter time horizons when evaluating their investment success and BB fund investments are anything but typical and usually require a very long term commitment for success.
Sears has rebounded from it's Feb 9, 2017 low... wonder when he made his most recent buys of this stock?
If BB faces challenges managing a deep value fund in a risky environment, part of it may be due to his own grandstanding (was there a financial show that Bruce refused to appear on during his heyday...?). Bruce got called out on it during shareholder calls, and his defense was always "...most efficient way to communicate with our shareholders...", which is horse-hooey.
And then we had Bruce "avoid the crowd" Berkowitz's odd (highly odd) management decisions.
He's a smart investor. He ultimately might only be a mediocre fund manager, however.
Comments
The typical investors today has a much shorter time horizons when evaluating their investment success and BB fund investments are anything but typical and usually require a very long term commitment for success.
Sears has rebounded from it's Feb 9, 2017 low... wonder when he made his most recent buys of this stock?
And then we had Bruce "avoid the crowd" Berkowitz's odd (highly odd) management decisions.
He's a smart investor. He ultimately might only be a mediocre fund manager, however.