Form NPORT-P FAIRHOLME FUNDS INC For: Feb 28

April 27, 2020 6:05 AM EDT

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      Fairholme Funds, Inc.
      811-09607
      0001096344
      549300HWYY7ECL9DW492
      2601 NE 2ND AVENUE
      Miami
      
      33137
      1-866-202-2263
      The Fairholme Fund
      S000008484
      549300OIJNQWMW22MR11
      2020-11-30
      2020-02-28
      N
    
    
      1026383664.70
      4327174.20
      1022056490.50
      0.00000000
      0.00000000
      0.00000000
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          USD
          
          
        
      
      
      
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        Fidelity Treasury Portfolio
        N/A
        Fidelity Treasury Portfolio
        316175504
        
          
          
        
        11699463.72000000
        NS
        USD
        11699463.72000000
        1.144698343853
        Long
        STIV
        RF
        US
        N
        
        1
        
          N
          N
          N
        
      
      
        MCCORMICK & CO COMM 03/16/2020
        N/A
        MCCORMICK & CO COMM 03/16/2020
        000000000
        
          
        
        11000000.00000000
        PA
        USD
        10990572.12000000
        1.075339007399
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-16
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        MARRIOTT INTL COMM P 03/12/2020
        N/A
        MARRIOTT INTL COMM P 03/12/2020
        000000000
        
          
        
        1000000.00000000
        PA
        USD
        999377.81000000
        0.097781073677
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-12
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        MONDELEZ INTL INC CO 03/06/2020
        N/A
        MONDELEZ INTL INC CO 03/06/2020
        000000000
        
          
        
        19000000.00000000
        PA
        USD
        18993719.36000000
        1.858382539179
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-06
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        GENERAL MILLS COMM P 03/03/2020
        N/A
        GENERAL MILLS COMM P 03/03/2020
        000000000
        
          
        
        15000000.00000000
        PA
        USD
        14997184.95000000
        1.467353819421
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-03
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        TYSON FOODS INC 4/2 144A CP 1.7100 20200316
        N/A
        TYSON FOODS INC 4/2 144A CP 1.7100 20200316
        000000000
        
          
        
        3000000.00000000
        PA
        USD
        2997542.07000000
        0.293285361216
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-16
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        AUTOZONE INC COMM PA 03/02/2020
        N/A
        AUTOZONE INC COMM PA 03/02/2020
        000000000
        
          
        
        4000000.00000000
        PA
        USD
        3999438.32000000
        0.391312843974
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-02
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        MCCORMICK & CO COMM 03/19/2020
        N/A
        MCCORMICK & CO COMM 03/19/2020
        000000000
        
          
        
        1000000.00000000
        PA
        USD
        998996.11000000
        0.097743727405
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-19
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        St Joe Co/The
        529900XVHOT3BF8PWG49
        St Joe Co/The
        790148100
        
          
          
        
        22208024.00000000
        NS
        USD
        436831832.08000000
        42.74047825539
        Long
        EC
        CORP
        US
        N
        
        1
        
          N
          N
          N
        
      
      
        ROYAL CARIBBEAN COMM 04/06/2020
        N/A
        ROYAL CARIBBEAN COMM 04/06/2020
        000000000
        
          
        
        15000000.00000000
        PA
        USD
        14968729.20000000
        1.464569653354
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-04-06
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        AUTOZONE INC COMMERC 03/06/2020
        N/A
        AUTOZONE INC COMMERC 03/06/2020
        000000000
        
          
        
        4000000.00000000
        PA
        USD
        3998677.76000000
        0.391238429300
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-06
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        Berkshire Hathaway Inc
        5493000C01ZX7D35SD85
        Berkshire Hathaway Inc
        084670702
        
          
          
        
        192100.00000000
        NS
        USD
        39637914.00000000
        3.878250798114
        Long
        EC
        CORP
        US
        N
        
        1
        
          N
          N
          N
        
      
      
        ENERGY TRANSFER OPER
        N/A
        ENERGY TRANSFER OPER
        000000000
        
          
        
        5000000.00000000
        PA
        USD
        4997452.80000000
        0.488960526786
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-06
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        FANNIE MAE
        B1V7KEBTPIMZEU4LTD58
        FEDERAL NATIONAL MORTGAGE ASSOCIATION
        313586752
        
          
          
        
        8784077.00000000
        NS
        USD
        95131553.91000000
        9.307856737298
        Long
        EP
        USGSE
        US
        N
        
        1
        
          N
          N
          N
        
      
      
        CAMPBELL SOUP CO COM 03/13/2020
        N/A
        CAMPBELL SOUP CO COM 03/13/2020
        000000000
        
          
        
        1300000.00000000
        PA
        USD
        1299127.41000000
        0.127109159041
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-13
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        CAN PAC RAIL LTD COM 03/05/2020
        N/A
        CAN PAC RAIL LTD COM 03/05/2020
        000000000
        
          
        
        6600000.00000000
        PA
        USD
        6598134.38000000
        0.645574333838
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-05
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        FREDDIE MAC
        S6XOOCT0IEG5ABCC6L87
        FEDERAL HOME LOAN MORTGAGE CORP
        313400624
        
          
          
        
        8955013.00000000
        NS
        USD
        94475387.15000000
        9.243656102000
        Long
        EP
        USGSE
        US
        N
        
        1
        
          N
          N
          N
        
      
      
        MARSH & MCLENNAN COM 03/17/2020
        N/A
        MARSH & MCLENNAN COM 03/17/2020
        000000000
        
          
        
        14000000.00000000
        PA
        USD
        13987834.00000000
        1.368596954279
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-17
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        FORD MOTOR CREDIT CO 04/13/2020
        N/A
        FORD MOTOR CREDIT CO 04/13/2020
        000000000
        
          
        
        5000000.00000000
        PA
        USD
        4986312.50000000
        0.487870538110
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-04-13
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        AUTOZONE INC COMM PA 03/05/2020
        N/A
        AUTOZONE INC COMM PA 03/05/2020
        000000000
        
          
        
        16000000.00000000
        PA
        USD
        15995477.28000000
        1.565028687619
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-05
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        CONSTELLATION BRANDS 03/16/2020
        N/A
        CONSTELLATION BRANDS 03/16/2020
        000000000
        
          
        
        2000000.00000000
        PA
        USD
        1997607.72000000
        0.195449834580
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-16
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        MARRIOTT INTL INC CO 03/04/2020
        N/A
        MARRIOTT INTL INC CO 03/04/2020
        000000000
        
          
        
        11000000.00000000
        PA
        USD
        10997413.46000000
        1.076008377444
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-04
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        ROYAL CARIBBEAN COMM 03/17/2020
        N/A
        ROYAL CARIBBEAN COMM 03/17/2020
        000000000
        
          
        
        8000000.00000000
        PA
        USD
        7991952.00000000
        0.781948167668
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-17
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        DUKE ENERGY CORP COM 04/03/2020
        N/A
        DUKE ENERGY CORP COM 04/03/2020
        000000000
        
          
        
        5000000.00000000
        PA
        USD
        4991381.25000000
        0.488366474494
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-04-03
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        BELL CANADA COMM PAP 03/09/2020
        N/A
        BELL CANADA COMM PAP 03/09/2020
        000000000
        
          
        
        13000000.00000000
        PA
        USD
        12993406.14000000
        1.271300193362
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-09
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        Imperial Metals Corp
        549300WQSPLDYCC4Z755
        Imperial Metals Corp
        452892102
        
          
          
          
        
        6865767.00000000
        NS
        
        8235339.82000000
        0.805761706573
        Long
        EC
        CORP
        CA
        N
        
        1
        
          N
          N
          N
        
      
      
        MONDELEZ INTL INC CO 03/11/2020
        N/A
        MONDELEZ INTL INC CO 03/11/2020
        000000000
        
          
        
        13000000.00000000
        PA
        USD
        12992551.00000000
        1.271216524797
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-11
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        ALBEMARLE CORP COMM 03/03/2020
        N/A
        ALBEMARLE CORP COMM 03/03/2020
        000000000
        
          
        
        5000000.00000000
        PA
        USD
        4998525.55000000
        0.489065486737
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-03
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        WALGREENS BOOTS COMM 03/06/2020
        N/A
        WALGREENS BOOTS COMM 03/06/2020
        000000000
        
          
        
        7665000.00000000
        PA
        USD
        7662466.26000000
        0.749710640382
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-06
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        FORD MOTOR CREDIT CO 03/26/2020
        N/A
        FORD MOTOR CREDIT CO 03/26/2020
        000000000
        
          
        
        4000000.00000000
        PA
        USD
        3993580.00000000
        0.390739654522
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-26
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        TYSON FOODS INC COMM 03/18/2020
        N/A
        TYSON FOODS INC COMM 03/18/2020
        000000000
        
          
        
        8500000.00000000
        PA
        USD
        8492189.69000000
        0.830892398701
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-18
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        FORD MOTOR CREDIT CO 03/31/2020
        N/A
        FORD MOTOR CREDIT CO 03/31/2020
        000000000
        
          
        
        5000000.00000000
        PA
        USD
        4990457.80000000
        0.488276122346
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-31
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        CONSTELLATION BRANDS 03/13/2020
        N/A
        CONSTELLATION BRANDS 03/13/2020
        000000000
        
          
        
        14000000.00000000
        PA
        USD
        13986165.62000000
        1.368433716727
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-13
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        TREASURY BILL
        254900HROIFWPRGM1V77
        United States Treasury Bill
        912796TX7
        
          
        
        50000000.00000000
        PA
        USD
        49836942.50000000
        4.876143634254
        Long
        DBT
        UST
        US
        N
        
        2
        
          2020-06-04
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        ALBEMARLE CORP COMM 03/05/2020
        N/A
        ALBEMARLE CORP COMM 03/05/2020
        000000000
        
          
        
        5500000.00000000
        PA
        USD
        5497588.25000000
        0.537894754458
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-05
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        SEARS HOLDINGS CORP
        549300KWWR4P1RYUVG65
        Sears Holdings Corp
        812350AF3
        
          
          
        
        97022000.00000000
        PA
        USD
        1416521.20000000
        0.138595196367
        Long
        DBT
        CORP
        US
        N
        
        2
        
          2019-12-15
          Fixed
          8.00000000
          Y
          N
          N
        
        
          N
          N
          N
        
      
      
        STARBUCKS CORP COMM 03/16/2020
        N/A
        STARBUCKS CORP COMM 03/16/2020
        000000000
        
          
        
        14000000.00000000
        PA
        USD
        13988000.88000000
        1.368613282144
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-16
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        DUKE ENERGY CORP COM 04/09/2020
        N/A
        DUKE ENERGY CORP COM 04/09/2020
        000000000
        
          
        
        9600000.00000000
        PA
        USD
        9580571.42000000
        0.937381789465
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-04-09
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        SHERWIN-WILLIAMS CO. 03/26/2020
        N/A
        SHERWIN-WILLIAMS CO. 03/26/2020
        000000000
        
          
        
        13000000.00000000
        PA
        USD
        12985004.50000000
        1.270478160521
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-26
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        ROYAL CARIBBEAN COMM 03/30/2020
        N/A
        ROYAL CARIBBEAN COMM 03/30/2020
        000000000
        
          
        
        8000000.00000000
        PA
        USD
        7986366.88000000
        0.781401708636
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-30
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        DUKE ENERGY CORP COM 03/17/2020
        N/A
        DUKE ENERGY CORP COM 03/17/2020
        000000000
        
          
        
        5000000.00000000
        PA
        USD
        4995655.00000000
        0.488784626528
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-17
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
      
        SHERWIN-WILLIAMS CO. 03/24/2020
        N/A
        SHERWIN-WILLIAMS CO. 03/24/2020
        000000000
        
          
        
        15000000.00000000
        PA
        USD
        14983927.05000000
        1.466056640633
        Long
        DBT
        CORP
        US
        Y
        
        2
        
          2020-03-24
          None
          0.00000000
          N
          N
          N
        
        
          N
          N
          N
        
      
    
    
      
    
    
      2020-04-23
      Fairholme Funds, Inc.
      Wayne Kellner
      Wayne Kellner
      President and Chief Financial Officer
    
  
  XXXX



THE FAIRHOLME FUND

SCHEDULE OF INVESTMENTS

February 29, 2020 (unaudited)

Shares

 

Value

 

DOMESTIC EQUITY

 

 

 

SECURITIES — 46.7%

 

 

 

DIVERSIFIED HOLDING

 

 

 

COMPANIES — 3.9%

 

 

192,100 Berkshire Hathaway, Inc.,

 

 

 

Class B (a)

$ 39,637,914

 

REAL ESTATE MANAGEMENT

 

 

 

& DEVELOPMENT — 42.8%

 

 

22,208,024 The St. Joe Co. (a)(b)

436,831,832

TOTAL DOMESTIC EQUITY SECURITIES

 

 

(COST $636,573,973)

476,469,746

 

FOREIGN EQUITY

 

 

 

SECURITIES — 0.8%

 

 

 

CANADA — 0.8%

 

 

 

METALS & MINING — 0.8%

 

 

6,865,767 Imperial Metals Corp. (a)(b)

8,235,340

TOTAL FOREIGN EQUITY SECURITIES

 

 

(COST $64,630,492)

 

8,235,340

DOMESTIC PREFERRED EQUITY

SECURITIES — 18.6%

 

 

MORTGAGE FINANCE — 18.6%

 

 

8,955,013 Federal Home Loan Mortgage

 

 

 

Corp.

 

 

 

7.875%, Series Z (a)(c)

94,475,387

 

8,784,077 Federal National Mortgage

 

 

 

Association

 

 

 

7.750%, Series S (a)(c)

95,131,554

 

 

 

 

189,606,941

TOTAL DOMESTIC PREFERRED

 

 

EQUITY SECURITIES

 

 

(COST $75,287,318)

189,606,941

 

 

 

 

 

 

Principal

 

 

 

DOMESTIC CORPORATE

 

 

 

 

 

 

BONDS — 0.1%

 

 

 

RETAIL DEPARTMENT

 

 

 

STORES — 0.1%

 

$97,022,000 Sears Holdings Corp.

 

 

 

8.000%, 12/15/2019 (d)

 

1,416,521

TOTAL DOMESTIC CORPORATE BONDS

 

 

(COST $97,385,904)

1,416,521

 

 

 

 

 

 

Principal

 

 

 

Value

 

 

 

COMMERCIAL

 

 

 

 

 

 

PAPER — 28.1%

 

 

 

 

 

 

AUTO MANUFACTURERS — 1.4%

 

 

 

 

Ford Motor Credit Co.

 

 

 

$ 4,000,000

1.853%, 03/26/2020 (e)(f)

$

3,993,580

5,000,000

2.313%, 03/31/2020 (e)(f)

 

 

4,990,458

5,000,000

1.955%, 04/13/2020 (e)(f)

 

 

4,986,313

 

 

 

 

 

 

13,970,351

 

 

 

AUTOMOTIVE RETAIL — 2.3%

 

 

 

 

 

 

AutoZone, Inc.

 

 

 

4,000,000

1.671%, 03/02/2020 (e)(f)

 

 

3,999,438

16,000,000

1.671%, 03/05/2020 (e)(f)

 

 

15,995,477

4,000,000

1.671%, 03/06/2020 (e)(f)

 

 

3,998,678

 

 

 

 

 

 

23,993,593

 

 

 

BEVERAGES — 1.6%

 

 

 

 

 

 

 

 

 

 

 

 

Constellation Brands, Inc.

 

 

 

14,000,000

1.852%, 03/13/2020 (e)(f)

 

 

13,986,166

2,000,000

1.802%, 03/16/2020 (e)(f)

 

 

1,997,608

 

 

 

 

 

 

15,983,774

 

 

 

CHEMICALS — 3.8%

 

 

 

 

 

 

 

 

 

 

 

 

Albemarle Corp.

 

 

 

5,000,000

1.703%, 03/03/2020 (e)(f)

 

 

4,998,526

5,500,000

1.723%, 03/05/2020 (e)(f)

 

 

5,497,588

 

 

 

Sherwin-Williams Co.

 

 

 

15,000,000

1.762%, 03/24/2020 (e)(f)

 

 

14,983,927

13,000,000

1.813%, 03/26/2020 (e)(f)

 

 

12,985,005

 

 

 

 

 

 

38,465,046

 

 

 

ENERGY SERVICES — 1.9%

 

 

 

 

 

 

Duke Energy Corp.

 

 

 

5,000,000

1.755%, 03/17/2020 (e)(f)

 

 

4,995,655

5,000,000

1.733%, 04/03/2020 (e)(f)

 

 

4,991,381

9,600,000

1.705%, 04/09/2020 (e)(f)

 

 

9,580,571

 

 

 

 

 

 

19,567,607

 

 

 

FOOD PRODUCTS — 3.1%

 

 

 

 

 

 

 

 

 

 

 

 

Mondelez International, Inc.

 

 

 

19,000,000

1.690%, 03/06/2020 (e)(f)

 

 

18,993,719

13,000,000

1.692%, 03/11/2020 (e)(f)

 

 

12,992,551

 

 

 

 

 

 

31,986,270

 

 

 

 

 

 

 

The accompanying notes are an integral part of the schedule of investments.

1

THE FAIRHOLME FUND

SCHEDULE OF INVESTMENTS (continued)

February 29, 2020 (unaudited)

 

Principal

 

 

Value

 

 

 

COMMERCIAL PAPER

 

 

 

 

 

(CONTINUED) — 28.1%

 

 

 

 

 

HOTEL, RESORTS & CRUISE LINES — 4.2%

 

 

 

Marriott International, Inc.

 

 

$11,000,000

1.886%, 03/04/2020 (e)(f)

$

10,997,413

1,000,000

1.712%, 03/12/2020 (e)(f)

 

999,378

 

 

 

Royal Caribbean Cruises Ltd.

 

 

8,000,000

1.904%, 03/17/2020 (e)(f)

 

7,991,952

8,000,000

1.903%, 03/30/2020 (e)(f)

 

7,986,367

15,000,000

1.904%, 04/06/2020 (e)(f)

 

14,968,729

 

 

 

 

 

42,943,839

 

 

 

INSURANCE BROKERS — 1.4%

 

 

14,000,000

Marsh & McLennan Companies, Inc.

 

 

 

 

1.722%, 03/17/2020 (e)(f)

 

13,987,834

 

 

 

OIL & GAS STORAGE &

 

 

 

 

 

TRANSPORTATION — 0.5%

 

 

5,000,000

Energy Transfer Partners

 

 

 

 

 

1.981%, 03/06/2020 (e)(f)

 

4,997,453

 

 

 

PACKAGED FOODS — 3.9%

 

 

1,300,000

Campbell Soup Co.

 

 

 

 

 

1.784%, 03/13/2020 (e)(f)

 

1,299,127

15,000,000

General Mills, Inc.

 

 

 

 

 

1.601%, 03/03/2020 (e)(f)

 

14,997,185

 

 

 

McCormick & Co.

 

 

11,000,000

1.692%, 03/16/2020 (e)(f)

 

10,990,572

1,000,000

1.722%, 03/19/2020 (e)(f)

 

998,996

 

 

 

Tyson Foods, Inc.

 

 

3,000,000

1.712%, 03/16/2020 (e)(f)

 

2,997,542

8,500,000

1.713%, 03/18/2020 (e)(f)

 

8,492,190

 

 

 

 

 

39,775,612

 

 

 

RAILROADS — 0.6%

 

 

 

 

 

 

 

6,600,000

Canadian Pacific Railway Ltd.

 

 

 

 

 

1.711%, 03/05/2020 (e)(f)

 

6,598,134

 

 

 

RESTAURANTS — 1.4%

 

 

14,000,000

Starbucks Corp.

 

 

 

 

 

1.703%, 03/16/2020 (e)(f)

 

13,988,001

 

 

Principal

 

 

Value

 

 

 

 

 

COMMERCIAL PAPER

 

 

 

 

 

 

 

 

(CONTINUED) — 28.1%

 

 

 

 

 

 

 

 

RETAIL DRUG STORE — 0.7%

 

 

 

$ 7,665,000

Walgreens Boots Alliance, Inc.

 

 

 

 

 

 

 

 

1.855%, 03/06/2020 (e)(f)

$

7,662,466

 

 

 

 

 

 

WIRELESS COMMUNICATION

 

 

 

 

 

 

 

 

SERVICES — 1.3%

 

 

 

13,000,000

Bell Canada

 

 

 

 

 

 

 

 

1.683%, 03/09/2020 (e)(f)

 

12,993,406

 

TOTAL COMMERCIAL PAPER

 

 

 

 

 

(COST $286,950,101)

 

286,913,386

 

 

 

 

 

 

U.S. GOVERNMENT

 

 

 

 

 

 

 

 

OBLIGATIONS — 4.9%

 

 

 

 

 

 

 

 

U.S. Treasury Bills

 

 

 

50,000,000

1.523%, 06/04/2020 (f)

 

49,836,943

 

TOTAL U.S. GOVERNMENT

 

 

 

 

 

OBLIGATIONS

 

 

 

 

 

(COST $49,800,104)

 

49,836,943

 

 

 

Shares

 

 

 

 

 

 

 

 

 

MONEY MARKET

 

 

 

 

 

 

 

 

FUNDS — 1.0%

 

 

 

10,248,120

 

Fidelity Investments Money

 

 

 

 

 

 

 

 

Market Treasury Portfolio -

 

 

 

 

 

 

 

 

Class I, 1.47% (g)

 

10,248,120

 

TOTAL MONEY MARKET FUNDS

 

 

 

 

 

(COST $10,248,120)

 

10,248,120

 

TOTAL INVESTMENTS — 100.2%

 

 

 

 

 

(COST $1,220,876,012)

 

1,022,726,997

 

 

 

 

 

 

LIABILITIES IN EXCESS

 

 

 

 

 

 

 

 

OF OTHER

 

 

 

 

 

 

 

 

ASSETS — (0.2)%

 

(2,007,153)

NET ASSETS — 100.0%

$

1,020,719,844

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)Non-income producing security.

(b)Affiliated Company. See Note 2.

(c)Variable rate security. Rates shown are the effective rates as of February 29, 2020.

(d)Security in default and no interest was accrued as of February 29, 2020.

(e)Restricted security as set forth in Rule 144(a) under the Securities Act of 1933. The value of these investments totals $286,913,386, which represents 28.11% of The Fairholme Fund's net assets.

(f)Rates shown are the effective yields based on the purchase price. The calculation assumes the security is held to maturity.

(g)Annualized based on the 1-day yield as of February 29, 2020.

The accompanying notes are an integral part of the schedule of investments.

2

THE FAIRHOLME FOCUSED INCOME FUND

SCHEDULE OF INVESTMENTS

February 29, 2020 (unaudited)

Shares

 

 

Value

 

DOMESTIC EQUITY

 

 

SECURITIES — 8.1%

 

 

FOOD PRODUCTS — 2.9%

 

225,000

The Kraft Heinz Co.

 

$ 5,573,250

 

OIL & GAS STORAGE &

 

 

TRANSPORTATION — 0.8%

 

120,000

Western Midstream Partners LP

 

1,567,200

 

OIL & NATURAL GAS

 

 

EXPLORATION — 2.6%

 

156,700

Occidental Petroleum Corp.

 

5,130,358

 

REAL ESTATE INVESTMENT

 

 

TRUSTS — 1.8%

 

29,000

Simon Property Group, Inc.

3,569,320

 

 

 

TOTAL DOMESTIC EQUITY SECURITIES

 

(COST $18,904,214)

15,840,128

 

 

 

 

 

DOMESTIC PREFERRED EQUITY

 

 

SECURITIES — 5.8%

 

 

MORTGAGE FINANCE — 4.9%

 

 

Federal Home Loan Mortgage

 

 

Corp.

 

302,300

5.100%, Series H (a)

5,293,273

260,924

6.550%, Series Y (a)

2,426,593

50,000

7.875%, Series Z (a)(b)

527,500

122,000

Federal National Mortgage

 

 

Association

 

 

7.750%, Series S (a)(b)

1,321,260

 

 

 

9,568,626

 

OIL & NATURAL GAS

 

 

EXPLORATION — 0.9%

 

 

Chesapeake Energy Corp.

 

42,416

5.000%

 

551,408

6,083

5.750%

 

690,785

3,350

5.750%

 

379,521

600

5.750% (c)

68,136

100

5.750% (c)

11,329

 

 

 

1,701,179

TOTAL DOMESTIC PREFERRED

 

EQUITY SECURITIES

 

(COST $14,221,245)

11,269,805

 

 

 

 

Principal

DOMESTIC CORPORATE

BONDS — 2.9%

DIVERSIFIED BANKS — 2.8%

$ 2,000,000 Bank of America Corp. 5.200%, Series U (d)(e)

2,000,000 JPMorgan Chase & Co. 5.300%, Series Z (d)(e)

1,318,000 Wells Fargo & Co. (3 mo. LIBOR + 3.770%) 5.664%, Series K (d)(f)

RETAIL DEPARTMENT

STORES — 0.1%

17,595,500 Sears Holdings Corp. 8.000%, 12/15/2019 (g)

TOTAL DOMESTIC CORPORATE BONDS (COST $22,029,361)

COMMERCIAL

PAPER — 75.7%

AUTO

MANUFACTURERS — 3.0%

6,000,000 Ford Motor Credit Co. 2.313%, 03/31/2020 (h)(i)

AUTOMOTIVE

RETAIL — 3.1%

6,000,000 AutoZone, Inc.

1.671%, 03/06/2020 (h)(i)

CHEMICALS — 6.1%

6,000,000 Albemarle Corp.

1.703%, 03/03/2020 (h)(i)

6,000,000 Sherwin-Williams Co.

1.782%, 03/24/2020 (h)(i)

DIVERSIFIED HOLDING

COMPANIES — 5.1%

Berkshire Hathaway Energy Co.

2,000,000 1.672%, 03/04/2020 (h)(i)

6,000,000 1.682%, 03/05/2020 (h)(i)

2,000,000 1.672%, 03/24/2020 (h)(i)

Value

$ 2,039,800

1,997,600

1,319,186

5,356,586

256,894

5,613,480

5,988,549

5,998,017

5,998,231

5,993,571

11,991,802

1,999,533

5,998,325

1,997,672

9,995,530

The accompanying notes are an integral part of the schedule of investments.

3

THE FAIRHOLME FOCUSED INCOME FUND

SCHEDULE OF INVESTMENTS (continued)

February 29, 2020 (unaudited)

 

Principal

 

 

 

Value

 

 

 

COMMERCIAL PAPER

 

 

 

 

 

 

(CONTINUED) — 75.7%

 

 

 

 

 

 

DIVERSIFIED

 

 

 

 

 

 

TECHNOLOGY — 2.2%

 

 

 

 

 

 

TELUS Corp.

 

 

 

$1,000,000

1.752%, 03/11/2020 (h)(i)

$

999,427

3,400,000

1.704%, 03/23/2020 (h)(i)

 

 

3,396,024

 

 

 

 

 

 

4,395,451

 

 

 

ENERGY SERVICES — 3.1%

 

 

 

 

 

 

Duke Energy Corp.

 

 

 

1,000,000

1.755%, 03/17/2020 (h)(i)

 

 

999,131

2,000,000

1.703%, 03/30/2020 (h)(i)

 

 

1,996,950

3,000,000

1.733%, 04/03/2020 (h)(i)

 

 

2,994,829

 

 

 

 

 

 

5,990,910

 

 

 

FOOD PRODUCTS — 3.1%

 

 

 

 

 

 

 

 

 

6,000,000

Mondelez International, Inc.

 

 

 

 

 

 

1.682%, 03/06/2020 (h)(i)

 

 

5,998,017

 

 

 

HOME FURNISHINGS — 3.1%

 

 

 

6,000,000

Mohawk Industries, Inc.

 

 

 

 

 

 

1.711%, 03/06/2020 (h)(i)

 

 

5,998,017

 

 

 

HOTEL, RESORTS & CRUISE

 

 

 

 

 

 

LINES — 5.8%

 

 

 

 

 

 

Marriott International, Inc.

 

 

 

1,000,000

1.886%, 03/04/2020 (h)(i)

 

 

999,765

1,000,000

1.722%, 03/25/2020 (h)(i)

 

 

998,730

3,450,000

1.755%, 04/28/2020 (h)(i)

 

 

3,439,708

6,000,000

Royal Caribbean Cruises Ltd.

 

 

 

 

 

 

1.904%, 03/17/2020 (h)(i)

 

 

5,993,964

 

 

 

 

 

 

11,432,167

 

 

 

INSURANCE

 

 

 

 

 

 

 

 

 

 

 

 

BROKERS — 3.1%

 

 

 

6,000,000

Marsh & McLennan Companies,

 

 

 

 

 

 

Inc.

 

 

 

 

 

 

1.722%, 03/17/2020 (h)(i)

 

 

5,994,786

 

 

 

MANAGED HEALTH

 

 

 

 

 

 

CARE — 3.0%

 

 

 

6,000,000

Humana, Inc.

 

 

 

 

 

 

1.824%, 04/08/2020 (h)(i)

 

 

5,986,980

 

Principal

 

 

 

Value

 

 

 

COMMERCIAL PAPER

 

 

 

 

 

 

(CONTINUED) — 75.7%

 

 

 

 

 

 

OIL & GAS STORAGE &

 

 

 

 

 

 

TRANSPORTATION — 3.1%

 

 

 

$5,000,000

Energy Transfer Operating LP

 

 

 

 

 

 

1.981%, 03/04/2020 (h)(i)

$

4,998,165

1,000,000

Energy Transfer Partners

 

 

 

 

 

 

1.981%, 03/06/2020 (h)(i)

 

 

999,491

 

 

 

 

 

 

5,997,656

 

 

 

OIL & NATURAL GAS

 

 

 

 

 

 

 

 

 

 

 

 

EXPLORATION — 3.1%

 

 

 

6,000,000

Suncor Energy Inc.

 

 

 

 

 

 

1.889%, 04/02/2020 (h)(i)

 

 

5,989,953

 

 

 

PACKAGED FOODS — 10.8%

 

 

 

6,000,000

General Mills, Inc.

 

 

 

 

 

 

1.601%, 03/12/2020 (h)(i)

 

 

5,996,267

3,173,000

Kellogg Company

 

 

 

 

 

 

1.650%, 03/03/2020 (h)(i)

 

 

3,172,404

 

 

 

McCormick & Co.

 

 

 

2,000,000

1.700%, 03/03/2020 (h)(i)

 

 

1,999,592

4,000,000

1.692%, 03/16/2020 (h)(i)

 

 

3,996,572

6,000,000

Tyson Foods, Inc

 

 

 

 

 

 

1.732%, 03/23/2020 (h)(i)

 

 

5,992,984

 

 

 

 

 

 

21,157,819

 

 

 

PUBLISHING — 3.1%

 

 

 

 

 

 

 

 

 

6,000,000

Thomson Reuters Corp.

 

 

 

 

 

 

1.702%, 03/27/2020 (h)(i)

 

 

5,991,670

 

 

 

RAILROADS — 3.1%

 

 

 

 

 

 

Canadian Pacific Railway Ltd.

 

 

 

2,000,000

1.711%, 03/05/2020 (h)(i)

 

 

1,999,435

4,000,000

1.731%, 03/11/2020 (h)(i)

 

 

3,997,708

 

 

 

 

 

 

5,997,143

 

 

 

REAL ESTATE INVESTMENT

 

 

 

 

 

 

 

 

 

 

 

 

TRUSTS — 2.0%

 

 

 

4,000,000

Brookfield U.S. Holdings Inc.

 

 

 

 

 

 

1.700%, 03/04/2020 (h)(i)

 

 

3,998,959

 

 

 

RESTAURANTS — 3.1%

 

 

 

 

 

 

Starbucks Corp.

 

 

 

1,000,000

1.703%, 03/16/2020 (h)(i)

 

 

999,143

1,000,000

1.682%, 03/20/2020 (h)(i)

 

 

998,948

4,000,000

1.702%, 03/23/2020 (h)(i)

 

 

3,995,211

 

 

 

 

 

 

5,993,302

 

 

 

 

 

 

 

The accompanying notes are an integral part of the schedule of investments.

4

THE FAIRHOLME FOCUSED INCOME FUND

 

 

 

 

 

 

 

 

 

 

 

 

SCHEDULE OF INVESTMENTS (continued)

 

 

 

 

 

 

 

 

 

 

 

 

February 29, 2020 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal

 

 

 

Value

 

 

Principal

 

 

 

Value

 

 

 

COMMERCIAL PAPER

 

 

 

 

 

 

 

 

U.S. GOVERNMENT

 

 

 

 

 

 

(CONTINUED) — 75.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OBLIGATIONS — 4.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RETAIL DRUG STORE — 0.5%

 

 

 

 

 

 

 

 

U.S. Treasury Bills

 

 

 

$1,000,000

Walgreens Boots Alliance, Inc.

 

 

 

 

$9,000,000

1.523%, 06/04/2020 (h)

$

8,970,650

 

 

 

 

1.855%, 03/06/2020 (h)(i)

$

999,669

TOTAL U.S. GOVERNMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TECHNOLOGY HARDWARE &

 

 

 

 

 

 

OBLIGATIONS

 

 

 

 

 

 

 

EQUIPMENT — 3.1%

 

 

 

 

 

 

(COST $8,964,019)

 

 

8,970,650

 

6,000,000

Arrow Electronics, Inc.

 

 

 

 

 

 

Shares

 

 

 

 

 

 

 

 

1.903%, 03/02/2020 (h)(i)

 

 

5,998,668

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MONEY MARKET

 

 

 

 

 

 

WIRELESS COMMUNICATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FUNDS — 3.0%

 

 

 

 

 

 

 

SERVICES — 3.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,822,713

Fidelity Investments Money

 

 

 

 

 

 

Bell Canada

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Treasury Portfolio -

 

 

 

4,000,000

1.672%, 03/24/2020 (h)(i)

 

 

3,995,019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class I, 1.47%

(j)

 

5,822,713

 

2,000,000

1.693%, 03/27/2020 (h)(i)

 

 

1,997,223

 

 

 

 

 

 

 

 

 

 

 

TOTAL MONEY MARKET FUNDS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,992,242

 

 

 

 

 

 

 

 

 

 

 

 

 

(COST $5,822,713)

 

 

5,822,713

 

TOTAL COMMERCIAL PAPER

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(COST $147,904,888)

 

 

147,887,307

 

TOTAL INVESTMENTS — 100.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(COST $217,846,440)

 

 

195,404,083

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES IN EXCESS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OF OTHER

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS — (0.1)%

 

(171,304)

 

 

 

 

 

 

 

 

NET ASSETS — 100.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

$

195,232,779

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)Non-income producing security.

(b)Variable rate security. Rates shown are the effective rates as of February 29, 2020.

(c)Restricted security as set forth in Rule 144A under the Securities Act of 1933. The value of these investments totals $79,465, which represents 0.04% of The Income Fund's net assets.

(d)Security is perpetual in nature and has no stated maturity date.

(e)Security is a fix-to-float security, which carries a fixed coupon until a certain date, upon which it switches to a floating rate. Rate shown is the fixed rate.

(f)Floating rate security. Rate shown is the effective rate as of February 29, 2020.

(g)Security in default and no interest was accrued as of February 29, 2020.

(h)Rates shown are the effective yields based on the purchase price. The calculation assumes the security is held to maturity.

(i)Restricted security as set forth in Rule 144(a) under the Securities Act of 1933. The value of these investments totals $147,887,307, which represents 75.75% of The Income Fund's net assets.

(j)Annualized based on the 1-day yield as of February 29, 2020.

The accompanying notes are an integral part of the schedule of investments.

5

THE FAIRHOLME ALLOCATION FUND

SCHEDULE OF INVESTMENTS

February 29, 2020 (unaudited)

Shares

 

 

 

Value

 

DOMESTIC EQUITY

 

 

 

 

SECURITIES — 23.4%

 

 

 

 

DIVERSIFIED HOLDING

 

 

 

 

COMPANIES — 5.0%

 

 

 

13,500

Berkshire Hathaway, Inc., Class

 

 

 

 

B (a)

$

2,785,590

 

FOOD PRODUCTS — 3.0%

 

 

 

67,400

The Kraft Heinz Co.

 

 

1,669,497

 

OIL & GAS STORAGE &

 

 

 

 

 

 

 

 

TRANSPORTATION — 0.8%

 

 

 

36,000

Western Midstream Partners LP

 

 

470,160

 

OIL & NATURAL GAS

 

 

 

 

 

 

 

 

EXPLORATION — 2.7%

 

 

 

46,000

Occidental Petroleum Corp.

 

 

1,506,040

 

REAL ESTATE MANAGEMENT

 

 

 

 

 

 

 

 

& DEVELOPMENT — 11.9%

 

 

 

348,267

The St. Joe Co. (a)(b)

 

 

6,700,657

TOTAL DOMESTIC EQUITY SECURITIES

 

 

 

(COST $14,107,328)

 

 

13,131,944

 

FOREIGN EQUITY

 

 

 

 

SECURITIES — 4.7%

 

 

 

 

CANADA — 4.7%

 

 

 

 

METALS & MINING — 4.7%

 

 

 

2,192,841

Imperial Metals Corp. (a)

 

 

2,630,266

TOTAL FOREIGN EQUITY SECURITIES

 

 

 

(COST $25,958,539)

 

 

2,630,266

 

DOMESTIC PREFERRED EQUITY

 

 

SECURITIES — 17.6%

 

 

 

 

MORTGAGE FINANCE — 16.6%

 

444,095

Federal Home Loan Mortgage

 

 

 

 

Corp.

 

 

 

 

7.875%, Series Z (a)(c)

 

 

4,685,202

432,465

Federal National Mortgage

 

 

 

 

Association

 

 

 

 

7.750%, Series S (a)(c)

 

 

4,683,596

 

 

 

 

9,368,798

 

Shares

 

 

 

Value

 

 

 

OIL & NATURAL GAS

 

 

 

 

 

 

EXPLORATION — 1.0%

 

 

 

4,779

 

Chesapeake Energy Corp.

 

 

 

 

 

 

5.750%

$

542,703

TOTAL DOMESTIC PREFERRED

 

 

 

 

EQUITY SECURITIES

 

 

 

 

(COST $6,422,016)

 

 

9,911,501

 

Principal

 

 

 

 

 

 

 

 

 

 

 

 

COMMERCIAL

 

 

 

 

 

 

 

 

 

 

 

 

PAPER — 44.4%

 

 

 

 

 

 

AUTO

 

 

 

 

 

 

MANUFACTURERS — 1.8%

 

 

 

$1,000,000

Ford Motor Credit Co.

 

 

 

 

 

 

1.853%, 03/26/2020 (d)(e)

 

 

998,395

 

 

 

BEVERAGES — 3.5%

 

 

 

2,000,000

Constellation Brands, Inc.

 

 

 

 

 

 

1.852%, 03/13/2020 (d)(e)

 

 

1,998,024

 

 

 

CHEMICALS — 7.1%

 

 

 

2,000,000

Albemarle Corp.

 

 

 

 

 

 

1.723%, 03/05/2020 (d)(e)

 

 

1,999,123

2,000,000

Sherwin-Williams Co.

 

 

 

 

 

 

1.782%, 03/24/2020 (d)(e)

 

 

1,997,857

 

 

 

 

 

 

3,996,980

 

 

 

ENERGY SERVICES — 1.8%

 

 

 

1,000,000

Duke Energy Corp.

 

 

 

 

 

 

1.705%, 04/09/2020 (d)(e)

 

 

997,976

 

 

 

FOOD PRODUCTS — 3.6%

 

 

 

1,000,000

Mondelez International, Inc.

 

 

 

 

 

 

1.701%, 03/06/2020 (d)(e)

 

 

999,669

1,000,000

Mondelez International, Inc.

 

 

 

 

 

 

1.692%, 03/12/2020 (d)(e)

 

 

999,378

 

 

 

 

 

 

1,999,047

 

 

 

HOTEL, RESORTS & CRUISE

 

 

 

 

 

 

 

 

 

 

 

 

LINES — 7.1%

 

 

 

2,000,000

Marriott International, Inc.

 

 

 

 

 

 

1.886%, 03/04/2020 (d)(e)

 

 

1,999,530

 

 

 

Royal Caribbean Cruises Ltd.

 

 

 

1,000,000

1.955%, 03/04/2020 (d)(e)

 

 

999,718

1,000,000

1.904%, 04/06/2020 (d)(e)

 

 

997,915

 

 

 

 

 

 

3,997,163

The accompanying notes are an integral part of the schedule of investments.

6

THE FAIRHOLME ALLOCATION FUND

SCHEDULE OF INVESTMENTS (continued)

February 29, 2020 (unaudited)

 

Principal

 

 

 

Value

 

 

 

COMMERCIAL PAPER

 

 

 

 

 

 

(CONTINUED) — 44.4%

 

 

 

 

 

 

OIL & GAS STORAGE &

 

 

 

 

 

 

TRANSPORTATION — 3.5%

 

 

 

$2,000,000

Energy Transfer Partners

 

 

 

 

 

 

1.981%, 03/06/2020 (d)(e)

$

1,998,981

 

 

 

PACKAGED FOODS — 5.3%

 

 

 

1,000,000

Campbell Soup Co.

 

 

 

 

 

 

1.753%, 04/01/2020 (d)(e)

 

 

998,376

2,000,000

McCormick & Co.

 

 

 

 

 

 

1.651%, 03/03/2020 (d)(e)

 

 

1,999,592

 

 

 

 

 

 

2,997,968

 

 

 

PUBLISHING — 1.8%

 

 

 

 

 

 

 

 

 

1,000,000

Thomson Reuters Corp.

 

 

 

 

 

 

1.702%, 03/27/2020 (d)(e)

 

 

998,612

 

 

 

RAILROADS — 3.6%

 

 

 

2,000,000

Canadian Pacific Railway Ltd.

 

 

 

 

 

 

1.711%, 03/05/2020 (d)(e)

 

 

1,999,435

 

 

 

RESTAURANTS — 1.8%

 

 

 

1,000,000

Starbucks Corp.

 

 

 

 

 

 

1.703%, 03/16/2020 (d)(e)

 

 

999,143

 

 

 

WIRELESS COMMUNICATION

 

 

 

 

 

 

SERVICES — 3.5%

 

 

 

2,000,000

Bell Canada

 

 

 

 

 

 

1.683%, 03/09/2020 (d)(e)

 

 

1,998,985

TOTAL COMMERCIAL PAPER

 

 

 

 

(COST $24,984,553)

 

 

24,980,709

 

 

 

 

 

 

 

 

Principal

 

Value

 

 

 

U.S. GOVERNMENT

 

 

 

 

 

 

OBLIGATIONS — 5.3%

 

 

 

$3,000,000 U.S. Treasury Bills

 

 

 

 

 

 

1.523%, 06/04/2020 (e)

$

2,990,217

 

TOTAL U.S. GOVERNMENT

 

 

 

 

OBLIGATIONS

 

 

 

 

(COST $2,988,006)

 

2,990,217

 

 

Shares

 

 

 

 

 

 

MONEY MARKET

 

 

 

 

 

 

FUNDS — 4.7%

 

 

 

2,650,719 Fidelity Investments Money

 

 

 

 

 

 

Market Treasury Portfolio -

 

 

 

 

 

 

Class I, 1.47% (f)

 

2,650,719

 

TOTAL MONEY MARKET FUNDS

 

 

 

 

(COST $2,650,719)

 

2,650,719

 

TOTAL INVESTMENTS — 100.1%

 

 

 

 

 

 

 

(COST $77,111,161)

 

56,295,356

 

 

 

 

LIABILITIES IN EXCESS

 

 

 

 

 

 

OF OTHER

 

 

 

 

 

 

ASSETS — (0.1)%

 

(69,921)

NET ASSETS — 100.0%

$

56,225,435

 

 

 

 

 

 

 

 

(a)Non-income producing security.

(b)Restricted/controlled security. The value of this security totals $6,700,657, which represents 11.92% of The Allocation Fund's net assets. Information related to this security is as follows:

 

 

 

 

 

 

 

02/29/2020

 

 

 

Acquisition

 

Acquisition

Carrying Value

Shares

Issuer

 

Date(s)

 

Cost

 

 

Per Unit

348,267

The St. Joe Co.

08/09/2017-09/01/2017

$6,615,792

 

$19.24

(c)Variable rate security. Rates shown are the effective rates as of February 29, 2020.

(d)Restricted security as set forth in Rule 144(a) under the Securities Act of 1933. The value of these investments totals $24,980,709, which represents 44.43% of The Allocation Fund's net assets.

(e)Rates shown are the effective yields based on the purchase price. The calculation assumes the security is held to maturity.

(f)Annualized based on the 1-day yield as of February 29, 2020.

The accompanying notes are an integral part of the schedule of investments.

7

FAIRHOLME FUNDS, INC.

NOTES TO SCHEDULE OF INVESTMENTS

February 29, 2020 (unaudited)

Note 1. Significant Accounting Policies

As investment companies, the Funds follow the investment company accounting and reporting guidance, which is part of U.S. generally accepted accounting principles ("U.S. GAAP"). The Funds' investments are reported at fair value as defined by U.S. GAAP. The Funds calculate their net asset values as soon as practicable following the close of regular trading on the New York Stock Exchange (currently 4:00 p.m. Eastern Time) on each day the New York Stock Exchange is open.

A description of the valuation techniques applied to the Funds' securities measured at fair value on a recurring basis follows:

Security Valuation:

Equity securities (common and preferred stocks): Securities traded on a national securities exchange or reported on the NASDAQ national market are generally valued at the official closing price, or at the last reported sale price on the exchange or market on which the securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. To the extent these securities are actively traded and valuation adjustments are not applied, they are classified in Level 1 of the fair value hierarchy. If these securities are not actively traded, they are classified in Level 2. Subject to the oversight of the Board, the Manager may determine the fair valuation of a security when market quotations are insufficient or not readily available, when securities are determined to be illiquid or restricted, or when in the judgment of the Manager the prices or values available do not represent the fair value of the instrument. In these situations, if the inputs are observable, the valuation will be classified in Level 2 of the fair value hierarchy, otherwise they would be classified in Level 3.

Fixed-income securities (U.S. government obligations, corporate bonds, convertible bonds, and asset backed securities): The fair value of fixed-income securities is estimated using market quotations when readily available, but may also be estimated by various methods when no such market quotations exist and when the Manager believes these other methods reflect the fair value of such securities. These methods may consider recently executed transactions in securities of the issuer or comparable issuers and market price valuations from independent pricing services and/or brokers (where observable). Where the Manager deems it appropriate to do so (such as when independent prices are unavailable or not deemed to be representative of fair value) fixed income securities will be fair valued in good faith following consideration by, and conclusion of, the Manager's Valuation Committee. As of February 29, 2020, fixed-income securities are valued by the Manager utilizing observable market prices on the day of valuation or the average bid of independent broker/dealer quotes and/or the average of valuations from independent pricing services. Although fixed-income securities are classified in Level 2 of the fair value hierarchy at February 29, 2020, in instances where significant unobservable inputs are used, they would be classified in Level 3.

Open-end mutual funds: Investments in open-end mutual funds including money market funds are valued at their closing net asset value each business day and are classified in Level 1 of the fair value hierarchy.

Short-term securities: Investments in securities with maturities of less than sixty days when acquired, or which subsequently are within sixty days of maturity, shall be valued at prices supplied by an independent pricing source or by one of the Funds' pricing agents based on broker or dealer supplied valuations or matrix pricing. To the extent the inputs are observable and timely, the values would be classified in Level 2 of the fair value hierarchy.

Restricted securities: The Manager was deemed to be an affiliate of The St. Joe Co. ("Joe") for purposes of the Securities Act of 1933 and Rule 144. This determination was made based on a number of factors, including the collective ownership of Joe by certain of the Funds and other advisory clients advised by the Manager. Shares of Joe owned by The Allocation Fund are considered control securities under Rule 144 and are treated as restricted securities for purposes of The Allocation Fund's valuation and liquidity procedures. Due to the restrictions on resale, the securities are generally valued at a discount to similar publicly traded securities. Depending on the relative significance of valuation inputs, these instruments may be classified in either Level 2 or Level 3 of the fair value hierarchy.

8

FAIRHOLME FUNDS, INC.

NOTES TO SCHEDULE OF INVESTMENTS (continued)

February 29, 2020 (unaudited)

Warrants: The Funds may invest in warrants, which may be acquired either through a direct purchase, included as part of a private placement, or pursuant to corporate actions. Warrants entitle, but do not obligate, the holder to buy equity securities at a specific price for a specific period of time. Warrants may be considered more speculative than certain other types of investments in that they do not entitle a holder to dividends or voting rights with respect to the underlying securities that may be purchased nor do they represent any rights in the assets of the issuing company. Also, the value of a warrant does not necessarily change with the value of the underlying securities and a warrant ceases to have value if it is not exercised prior to its expiration date. Warrants traded on a security exchange are valued at the official closing price on the valuation date and are classified as Level 1 of the fair value hierarchy. Over the counter (OTC) warrants are valued using simulation models utilizing market value of the underlying security, expiration date of the warrants, volatility of the underlying security, strike price of the warrants, risk-free interest rate at the valuation date, and are classified as Level 2 or Level 3 of the fair value hierarchy depending on the observability of the inputs used.

The Funds use several recognized industry third-party pricing services (TPPS) - approved by the Board and unaffiliated with the Manager - to provide prices for some of the Funds' securities. The Funds also use other independent market trade data sources (such as TRACE, the FINRA developed mandatory reporting of over-the-counter secondary market transactions), as well as broker quotes provided by market makers. The data within these feeds is ultimately sourced from major stock exchanges and trading systems where these securities trade. If a price obtained from the pricing source is deemed unreliable, it may be discarded and/or challenged. In these cases the pricing decision is made by reference to the reliable market data from the other market data sources.

Subject to the oversight of the Board, the Manager may determine the fair valuation of a security when market quotations are insufficient or not readily available, when securities are determined to be illiquid or restricted, or when in the judgment of the Manager the prices or values available do not represent the fair value of the instrument. Factors which may cause the Manager to make such a judgment include the following: (a) only a bid price or an asked price is available; (b) the spread between bid and asked prices is substantial; (c) the liquidity of the securities; (d) the frequency of sales; (e) the thinness of the market; (f) the size of reported trades; (g) actions of the securities markets, such as the suspension or limitation of trading; and (h) local market closures. Among the factors to be considered to fair value a security are recent prices of comparable securities that are publicly traded, reliable prices of securities not publicly traded, the use of valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do not apply. The circumstances of fair valued securities are frequently monitored to determine if fair valuation measures continue to apply.

The Manager reports quarterly to the Board the results of the application of fair valuation policies and procedures.

The inputs and valuation techniques used to measure fair value of the Funds' investments are summarized into three levels as described in the hierarchy below:

Level 1 — quoted prices in active markets for identical securities;

Level 2 — other significant observable inputs (including quoted prices for similar securities, quoted prices in inactive markets for identical securities, interest rates, prepayment speeds, credit risk, etc.); and

Level 3 — significant unobservable inputs (including the Manager's determination as to the fair value of investments).

9

FAIRHOLME FUNDS, INC.

NOTES TO SCHEDULE OF INVESTMENTS (continued)

February 29, 2020 (unaudited)

The inputs or methodology used for valuing investments are not necessarily an indication of the level of risk associated with investing in those investments. The summary of the Funds' investments by inputs used to value the Funds' investments as of February 29, 2020, is as follows:

 

 

 

 

 

Valuation Inputs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 3 -

 

 

 

 

 

 

 

Level 2 – Other

 

Significant

 

Total

 

 

Level 1 –

 

 

 

Significant

 

Unobservable

 

Fair Value

 

 

Quoted Prices

 

Observable Inputs

 

Inputs

 

at 2/29/20

THE FAIRHOLME FUND

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INVESTMENTS (Fair Value):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic Equity Securities*

$476,469,746

 

$

 

 

$—

$

476,469,746

Foreign Equity Securities*

8,235,340

 

 

 

 

 

 

 

8,235,340

Domestic Preferred Equity Securities*

189,606,941

 

 

 

 

 

 

189,606,941

Domestic Corporate Bonds*

 

 

 

 

1,416,521

 

 

 

1,416,521

Commercial Paper*

 

 

 

 

286,913,386

 

 

 

286,913,386

U.S. Government Obligations

 

 

 

 

49,836,943

 

 

 

49,836,943

Money Market Funds

10,248,120

 

 

 

 

 

 

 

10,248,120

TOTAL INVESTMENTS

 

 

 

 

 

 

 

 

 

 

 

$684,560,147

 

$338,166,850

 

 

$—

$1,022,726,997

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*Industry classifications for these categories are detailed in the Schedule of Investments.

THE INCOME FUND

 

 

 

 

 

 

 

 

 

 

ASSETS:

 

 

 

 

 

 

 

 

 

 

INVESTMENTS (Fair Value):

 

 

 

 

 

 

 

 

 

 

Domestic Equity Securities*

$

15,840,128

$

$—

$

15,840,128

Mortgage Finance

 

9,568,626

 

 

 

9,568,626

Oil & Natural Gas Exploration

 

 

1,701,179

 

1,701,179

Domestic Corporate Bonds*

 

 

5,613,480

 

5,613,480

Commercial Paper*

 

 

147,887,307

 

147,887,307

U.S. Government Obligations

 

 

8,970,650

 

8,970,650

Money Market Funds

 

5,822,713

 

 

 

5,822,713

TOTAL INVESTMENTS

 

 

 

 

 

 

 

 

 

$

31,231,467

 

$164,172,616

$—

$

195,404,083

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*Industry classifications for these categories are detailed in the Schedule of Investments.

10

FAIRHOLME FUNDS, INC.

NOTES TO SCHEDULE OF INVESTMENTS (continued)

February 29, 2020 (unaudited)

 

 

 

 

 

 

Valuation Inputs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 3 -

 

 

 

 

 

 

 

 

 

 

Level 2 – Other

 

Significant

 

 

Total

 

 

 

Level 1 –

 

 

Significant

 

Unobservable

 

Fair Value

 

Quoted Prices

 

Observable Inputs

 

Inputs

 

 

at 2/29/20

THE ALLOCATION FUND

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INVESTMENTS (Fair Value):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic Equity Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate Management &

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Development

$

$ 6,700,657

 

 

$—

$

6,700,657

 

Other Industries*

 

 

6,431,287

 

 

 

 

 

 

 

6,431,287

 

Foreign Equity Securities*

 

 

2,630,266

 

 

 

 

 

 

 

2,630,266

 

Domestic Preferred Equity Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Finance

 

 

9,368,798

 

 

 

 

 

 

 

9,368,798

 

Oil & Natural Gas Exploration

 

 

542,703

 

 

 

 

 

542,703

 

Commercial Paper*

 

 

24,980,709

 

 

 

 

 

24,980,709

 

U.S. Government Obligations

 

 

2,990,217

 

 

 

 

 

2,990,217

 

Money Market Funds

 

 

2,650,719

 

 

 

 

 

 

 

 

 

2,650,719

 

TOTAL INVESTMENTS

$21,081,070

 

$35,214,286

 

 

$—

$56,295,356

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Industry classifications for these categories are detailed in the Schedule of Investments.

There were no Level 3 investments at February 29, 2020, or November 30, 2019.

Note 2. Transactions in Shares of Affiliates

Portfolio companies in which the Fairholme Fund owns 5% or more of the outstanding voting securities of the issuer are considered affiliates of the Fairholme Fund. The aggregate fair value of all securities of affiliates held in the Fairholme Fund as of February 29, 2020, amounted to $445,067,172, representing 43.60% of the Fairholme Fund's net assets.

Transactions in The Fairholme Fund during the period ended February 29, 2020, in which the issuer was an affiliate are as follows:

 

November 30, 2019

Gross Additions

Gross Deductions

February 29, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

Shares/

Shares/

Shares/

Shares/

 

 

 

Appreciation/

 

 

Par Value

Par Value

Par Value

Par Value

Fair Value

 

Depreciation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Imperial Metals Corp.

6,865,767

 

6,865,767

 

$

8,235,340

$

(551,684)

 

The St. Joe Co.

22,208,024

 

22,208,024

 

436,831,832

 

 

 

14,879,375

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

$

445,067,172

$

14,327,691

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For additional information regarding the accounting policies of the Funds and the most recent federal income tax information, refer to the most recent financial statements in the N-CSR filing at www.sec.gov.

11



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