Bruce Berkowitz's Fairholme Fund is back atop the mutual fund universe after many investors bailed. Will they come back?
According to the writers at Fortune -- To say Bruce Berkowitz of the $8-billion Fairholme Fund faced adversity last year is an understatement.
"Time to Sell Fairholme?" asked the Wall Street Journal on Nov. 6 (Its answer: yes). "Not to pick on Bruce Berkowitz too much," read a Kiplinger.com column on Dec. 8, "but hubris is such a dangerous trait in a fund manager."
"Investors always seek to buy great investments," MarketWatch remarked about Fairholme in October, "but often have to come to the realization that what's in their portfolio has crossed a line, and morphed from something they trust to something they should get rid of."
Popular belief held that Morningstar's U.S. Stock Manager of the Decade had lost his touch amid losses totaling -32.5% by year's end. Fortune got into the act, too. In a column appearing in the magazine's Dec. 26 issue, Allan Sloan recounted how his wonderful ride with Fairholme -- he bought shares between 2004 to early 2006, then again in 2010, riding them to a sizable gain -- came to a screeching halt in 2011. Sloan said he sold off his entire stake in October. (He told me right after, with a hearty laugh, that Fairholme would surely rebound after he sold out.)
Fairholme (FAIRX) hasn't just rebounded; it's scorched past every recent doubter…..
Read all about it at http://finance.fortune.cnn.com/2012/04/02/berkowitz-fairholme-fund/?iid=SF_F_LN
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