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Don't Get Sucked In By Fairholme Fund's Great Long-Term Record
I've posted this elsewhere, but I continue to be impressed by it: according to the reports on Fairholme's website, Berkowitz owns 10.5 million shares (over $300 million) in FAIRX and 9.2 million shares (about $120 million, or 40% of AUM) in FAAFX. The man certainly has a stake in the game. Long term investors (such as myself) have done very well with FAIRX.
"Don't Get Sucked in by Fairholme Fund's Great Long-Term Record"...right, don't get fooled by a profitable long-term deep value investment strategy.
Per Mr. Goldberg:
"Brains count for a lot. You need to be an independent thinker to be a good investor — and on this score, Berkowitz excels. But to run a mutual fund for individual investors, you also need to employ a strategy that will retain investors, and here Berkowitz falls short."
Actually, I really don't care about a strategy for retaining investors...the only time this becomes an issue is when holders bail and BB needs to unload to cover redemptions (which hopefully the cash stake mitigates).
The tracking of "investor returns" as defined by M* is a point of curiosity, and nothing more.
>> he ran the fund in such a way that it was bound to happen. Oh, come on. Have faith, or don't. But decide. I mean, people say the same about Heebner (CGMFX and CGMRX), even Soviero (FLVCX). I'm no longer in, but you gotta know what you're doing and investing in. Anyone who bails gets what he deserves. If your first rule is not to lose money etc., then stay the heck away.
Playing the game of probability. What fund has he picked that's in the doldrums that he thinks will outperform?
With such funds, you like the manager, ,you invest. Yes, one has to time it. WHEN vs WHY. So new investors, sure don't buy. Existing investors, no reason to sell. It all depends on why you bought the fund. If you bought fund to get exposure to financial stocks? Please sell immediately.
Comments
Regards,
Ted
Per Mr. Goldberg:
"Brains count for a lot. You need to be an independent thinker to be a good investor — and on this score, Berkowitz excels. But to run a mutual fund for individual investors, you also need to employ a strategy that will retain investors, and here Berkowitz falls short."
Actually, I really don't care about a strategy for retaining investors...the only time this becomes an issue is when holders bail and BB needs to unload to cover redemptions (which hopefully the cash stake mitigates).
The tracking of "investor returns" as defined by M* is a point of curiosity, and nothing more.
What he said.
>> he ran the fund in such a way that it was bound to happen.
Oh, come on. Have faith, or don't. But decide. I mean, people say the same about Heebner (CGMFX and CGMRX), even Soviero (FLVCX). I'm no longer in, but you gotta know what you're doing and investing in. Anyone who bails gets what he deserves. If your first rule is not to lose money etc., then stay the heck away.
With such funds, you like the manager, ,you invest. Yes, one has to time it. WHEN vs WHY. So new investors, sure don't buy. Existing investors, no reason to sell. It all depends on why you bought the fund. If you bought fund to get exposure to financial stocks? Please sell immediately.