MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

First look at Fairholme Allocation's portfolio

MikeMMikeM
edited May 2011 in Fund Discussions
Maybe others have already seen this but it's the first I've seen what is in the new Fairholme Allocation Fund FAAFX. As of 2/28/11 it held a lot of cash, 56%, but the equity stake was mostly financials (as expected) with the largest holding being MBIA Inc, down ~20% ytd. As of yesterdays close, the fund is -7% since inception. fwiw, I bought into this fund a couple months ago.

M* FAAFX portfolio holdings
http://portfolios.morningstar.com/fund/holdings?t=FAAFX&region=USA&culture=en-us

Comments

  • scott
    edited May 2011
    It looks a lot like FAIRX. (shrugs)

    Edited to add:

    They don't perform that differently, either (YTD comparison):

    http://finance.yahoo.com/echarts?s=FAAFX+Interactive#chart3:symbol=faafx;range=ytd;compare=fairx;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined

    So truly, I don't get it. FAAFX just seems like a way to take in more money to apply to the same things (literally). For an "allocation" fund, it performs awfully similarly to FAIRX.



  • MikeMMikeM
    Hi Scott. I agree the performance is similar and they both are heavy financial stocks. Interesting though that FAAFX doesn't hold any St. Joe's and it's largest holding, MBIA, doesn't show up in FAIRX holdings. FAAFX is also holding 2x the cash. Time will tell how or if they differ.
  • [Deleted User][Deleted User]
    The interesting question is where is Berkowitz's money invested. That to me is the key question.
  • scott
    I believe he has a substantial amount (I forget the details) of his personal wealth in the fund.
  • NickF
    Berkowitz and the other officers have ~$262 Million in FAIRX, another ~$6 Million in the income fund and another ~$38 Million in the Allocation Fund. They have rapidly increased their own holdings as well. So, I would say Berkowitz has an interest in the funds' performance.

    http://mfi.morningstar.com/BlogArticle.aspx
  • kmac
    Please state your sources of these numbers.
  • NickF
    Sorry, I got those numbers from a Morningstar Article. The link is bellow (and in the original comment):

    http://mfi.morningstar.com/BlogArticle.aspx

  • CharlesCharles
    Follow-up from Fairholme Funds SAI 5/22/12:

    Ownership of Fund Securities

    As of the fiscal year ended November 30, 2011, Mr. Berkowitz and his immediate family members owned shares of The Fairholme Fund worth in excess of $1,000,000, shares of The Income Fund worth in excess of $1,000,000, and shares of The Allocation Fund worth in excess of $1,000,000.

    As of February 29, 2012, officers and employees of the Manager, collectively owned shares of The Fairholme Fund worth $308,914,324, shares of The Income Fund worth $43,611,341 and shares of The Allocation Fund worth $69,463,250.
  • CharlesCharles
    edited July 2012
    And, Bruce R. Berkowitz owns 6,819,524 shares of FAAFX, or 22.44% of fund as of 2/29/12.
Sign In or Register to comment.