Fairholme Capital Founder Turns Away From Mutual Funds; Plans to Attract 'Sticky Money'
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Bruce Berkowitz, founder of Fairholme Capital Management, is planning to close his popular mutual funds to new investors at the end of February and he hopes to manage more 'sticky money'.
"We keep working on having shareholders that will that will stay with us at least for five years. And that's the reason why we're no longer going to accept new shareholders in the end of February, because I feel that those shareholders that have stayed with us understand what we're about. And I don't want the possibility of new money diluting the positions that we now have," the mutual fund manager told Bloomberg TV.
Berkowitz is also raising money for a partnership that takes minimum investments of $1 million, though he declined to give specifics.
"At this point, I can't talk about it," he said. "But stay tuned."
Presumably the new partnership would attract investors who plan to stick with the money manager for 5 years or longer.
Some of Fairholme Capital's largest positions are: American International Group (NYSE: AIG), Bank of America (NYSE: BAC) and Sears Holding (Nasdaq: SHLD).
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"We keep working on having shareholders that will that will stay with us at least for five years. And that's the reason why we're no longer going to accept new shareholders in the end of February, because I feel that those shareholders that have stayed with us understand what we're about. And I don't want the possibility of new money diluting the positions that we now have," the mutual fund manager told Bloomberg TV.
Berkowitz is also raising money for a partnership that takes minimum investments of $1 million, though he declined to give specifics.
"At this point, I can't talk about it," he said. "But stay tuned."
Presumably the new partnership would attract investors who plan to stick with the money manager for 5 years or longer.
Some of Fairholme Capital's largest positions are: American International Group (NYSE: AIG), Bank of America (NYSE: BAC) and Sears Holding (Nasdaq: SHLD).
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