cubsfan

Bruce said today he has virtually no regulatory restriction on how much AIG he can own in the fund. With BAC or any bank, he does have % restrictions for regulators, so this is mirrored by his holdings. From what I heard today, he likes both AIG and BAC equally - and one shouldn't construe that he thinks any less of BAC, because the position size is smaller than AIG. He made these comments today at Columbia University event.

Last June, at the Morningstar conference in Chicago, I spoke to Fred Frankel of Fairholme. I've owned FAIRX and FAAFX for a number of years. We spoke about the tough 2011 at length. He told me they were disappointed in all the "fast" money that came flying into the fund in 2010, and then flying out in 2011. Being named Morningstar Fund Manager of the Decade attracted hot money, which created the eventual liquidation in 2011. I told him the simple solution was just to close the fund. Why hadn't they done that? He said they would consider that seriously after what happened in 2011. The rapid liquidations took them by surprise and indicated that "new" shareholders didn't quite understand the fund.