BargainValueHunter Posted January 30, 2012 Share Posted January 30, 2012 Thanks Jacob from ValueWalk!! :) http://www.valuewalk.com/2012/01/fairholme-brutal-year-performance-32-aum-declines-70/#.Tyb69lyCkhU Fairholme Fund run by Bruce Berkowitz just released their year end letter. To say Bruce Berkowitz had a bad year is an understatement. Not only did the fund drop by more than 32%, but assets under management (aum) also dropped from ~$23B to $7B; that is a 70% drop in assets! Even John Paulson who lost 47% in 2011, did not see such a drastic decline in aum. Link to comment Share on other sites More sharing options...
jacobwolinsky Posted January 31, 2012 Share Posted January 31, 2012 Thank you! Looks like 2012 is shaping up so far to be better for Berkowitz, but it is far from certain yet. Link to comment Share on other sites More sharing options...
biaggio Posted January 31, 2012 Share Posted January 31, 2012 Thanks for posting Jacob. Painful. Seems self reenforcing decline especially seeing that he is so concentrated (redemptions lead to selling of holdings, which lead to lower prices which lead to more redemptions). Wonder if he has looked at different business model, like FFH or BRK. Link to comment Share on other sites More sharing options...
Uccmal Posted January 31, 2012 Share Posted January 31, 2012 Biaggio, that seems to be what's happening. People are withdrawing money, causing the fund to have to sell at a loss. This is a big problem for mutual funds and why individual investors or groups like FFH and BRK can so handily beat them. Link to comment Share on other sites More sharing options...
Guest Hester Posted January 31, 2012 Share Posted January 31, 2012 That's what happens when your investor base consists of people who invested because they liked the ads on morningstar. Link to comment Share on other sites More sharing options...
ragnarisapirate Posted January 31, 2012 Share Posted January 31, 2012 It's tragic: this is probably a the BEST time to send money Bruce's way. All of the bad seeds have left! If you can time it right, investing in funds like this could be more rewarding than investing in a company with permanent capital (such as BRK/FFH). Link to comment Share on other sites More sharing options...
dwy000 Posted January 31, 2012 Share Posted January 31, 2012 Look at the bright side Bruce, at least you don't have to worry about closing the fund because it's gotten too big anymore. Link to comment Share on other sites More sharing options...
bargainman Posted January 31, 2012 Share Posted January 31, 2012 Yup this is his own fault for not closing the fund to outside investors when he had the chance. I wonder if he'll learn his lesson and close it next time he has a good run. Or maybe he'll switch to JOE and make a deal with Eddie to close up shop at Fairholme. He still has a lot of money though. Still about as big as YACKX for example... As a shareholder I'm kind of upset by his refusal to close up shop back in the day... Link to comment Share on other sites More sharing options...
farnamstreet Posted January 31, 2012 Share Posted January 31, 2012 On February 8, 2012, Fairholme Capital Management will broadcast an interview with Bruce Berkowitz, Chief Investment Officer. Fred Fraenkel, Chief Research Officer, will moderate the conversation. Shareholders can submit questions to Bruce via email at investorrelations@fairholme.net by Sunday, January 29th. His answers will be taped and the entire interview will be posted on www.fairholmefunds.com on February 8th. Fairholme hopes this conversation will lead to a better understanding of why Fairholme is staying the course with the portfolio that Bruce has built, and why he thinks that this portfolio will position Fairholme Funds to deliver long-term shareholder value. That is Fairholme’s mantra. http://www.fairholmefunds.com/pdf/ConversationBB.pdf Link to comment Share on other sites More sharing options...
petey2720 Posted January 31, 2012 Share Posted January 31, 2012 Hey, I could not find their year end letter on their website. Can someone post a link. Thanks Link to comment Share on other sites More sharing options...
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