jay21 Posted October 7, 2013 Share Posted October 7, 2013 Thanks for sharing. What's the thought process here? That he can employ some leverage and perhaps more importantly, hedge to reduce some of his horrible down years? His ~12% per annum, since inception is good, but its about where Gayner is....and guys like Loeb and Pabrai have crushed this, no? I guess his fees are a little lower. The article listed quite a few things: "The idea is that we would have the ability to make investments that I could not make in the mutual fund, or larger investments that would not be possible," he said. Investment possibilities include real estate, larger stakes in companies than mutual funds are allowed to buy under U.S. rules, and even acquisitions, with his clients' blessing. The hedge fund has some positions that the mutual funds couldn't hold, a Fairholme spokesman said, declining to elaborate. Institutional investors in Fairholme Partnership LP hedge fund must put in at least $5 million and agree to lock up their money for one, three or five years. Retail investors can't get a piece of Mr. Berkowitz's hedge fund, which was up 23% as of Sept. 30. Unlike almost all other hedge funds, Mr. Berkowitz isn't charging a management fee, instead taking performance fees tied to how long investors agree to lock up their money. Fairholme collects 15% performance fees on money locked up for five years, 20% for three years and 25% for one year, subject to high-water marks. Link to comment Share on other sites More sharing options...
Saidal Posted October 8, 2013 Share Posted October 8, 2013 It would be highly interesting to see a the fund's prospectus/ pitch book. I'm sure its making the rounds among some institutions. Also, I wonder what Bruce's plans are for St.Joe, given he is squarely in control. Link to comment Share on other sites More sharing options...
GrizzlyRock Posted October 8, 2013 Share Posted October 8, 2013 BB should just show this and he's get institutional investors (who can handle the price vol) Link to comment Share on other sites More sharing options...
CorpRaider Posted October 8, 2013 Share Posted October 8, 2013 Yeah, I read the article and get that he can buy some different stuff and investors can pay him more for that. Not sure ability to buy real estate is an alpha driver for a dude who owns as much St. Joe and SHLD. Mazel to Bruce; I suppose I'm just underwhelmed, because I was hoping his plan was to maybe make JOE his vehicle, one that wouldn't be a flow-through and would provide something closer to "permanent" capital. Link to comment Share on other sites More sharing options...
BargainValueHunter Posted January 17, 2014 Share Posted January 17, 2014 Checking in on the Fairholme Partnership one year on... http://www.cnbc.com/id/101341966 Berkowitz's no-hedge hedge fund up 33% Now a year old, the equity and bond-focused fund doesn't have a billion dollars—it managed $206 million as of Jan. 1—but is up from $140 million in October. While the new vehicle is technically a hedge fund, it doesn't act like one. The average net market exposure was 100 percent over 2013; the fund does not short, or bet against the market. A more typical hedge fund net exposure is about 20 percent, meaning long bets only slightly outweigh shorts. Link to comment Share on other sites More sharing options...
merkhet Posted January 17, 2014 Share Posted January 17, 2014 Checking in on the Fairholme Partnership one year on... http://www.cnbc.com/id/101341966 Berkowitz's no-hedge hedge fund up 33% Now a year old, the equity and bond-focused fund doesn't have a billion dollars—it managed $206 million as of Jan. 1—but is up from $140 million in October. While the new vehicle is technically a hedge fund, it doesn't act like one. The average net market exposure was 100 percent over 2013; the fund does not short, or bet against the market. A more typical hedge fund net exposure is about 20 percent, meaning long bets only slightly outweigh shorts. Does that mean that the fund has to file now that it's over $150 million? Link to comment Share on other sites More sharing options...
asw310 Posted January 17, 2014 Share Posted January 17, 2014 Pretty sure the hedge fund holdings would need to be disclosed on Fairholme's existing 13F Link to comment Share on other sites More sharing options...
indythinker85 Posted January 17, 2014 Share Posted January 17, 2014 Too lazy to search but form ADV (public on SEC website) has to disclose all AUM. If hes just investing in same securities (unless i skimmed too quickly) why bother with mutual funds. I mean he has billions in AUM so he cant just close them, but hed make more if he tried to get existing and new investors to HF (gonna assume most AUM is from qualified/instit). Link to comment Share on other sites More sharing options...
frith2012 Posted January 17, 2014 Share Posted January 17, 2014 The 13F comes from the filing entity, Fairholme Capital Management LLC, and would include both MF and HF holdings so the 13F will be an aggregate filing. Non '40 Act partnerships don't have separate holdings filings, unlike '40 act funds such as mutual funds which have their N-Qs and CSRs. Link to comment Share on other sites More sharing options...
merkhet Posted January 17, 2014 Share Posted January 17, 2014 Is the GP definitely the same? Link to comment Share on other sites More sharing options...
BargainValueHunter Posted January 31, 2017 Share Posted January 31, 2017 Did Berkowitz close this fund? And why has Fairholme been up recently while its holdings have sank or at least tread water? Link to comment Share on other sites More sharing options...
gfp Posted January 31, 2017 Share Posted January 31, 2017 GSE's would be a good guess And why has Fairholme been up recently while its holdings have sank or at least tread water? Link to comment Share on other sites More sharing options...
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