|New Threads Only:|
|New Threads & Replies:|
Forum List » Guru News and Commentaries|
Guru News, Stock picks and commentaries
Ex-Berkowitz/Fairholme Co-Manager Fernandez Emerges with His Own Hedge Fund
Posted by: CanadianValue (IP Logged)
Date: November 29, 2012 05:58PM
2011 was a year to forget the legendary investor and manager of the Fairholme Fund, Bruce Berkowitz. The performance of the fund was awful, investors pulled their money from the fund in droves and key player in the fund Charlie Fernandez departed for reasons that are still unclear.
As many of us expected, Fairholme has bounced back in 2012 because Berkowitz hadn't lost his mind in 2011, it just so happens that stocks don't always go up simply because a great investor owns them. Years of underperformance (often significant) happen to everyone.
Fernandez is also apparently about to bounce back as he has opened his own interesting sounding hedge fund:
Barnstar Opportunities will hold four to six core positions, accounting for 40% of its portfolio, with no one position accounting for more than 15% on a cost basis, said Fernandez. Another “15 or so positions” will account for the remaining 60%:
“These 15 positions are companies that have dislocations that aren't major dislocations which require an enormous amount of research and time, not perhaps as severe as, 'Is the company going to go into bankruptcy? Is the company going to be put out of business? Is the company going to lose its license to operate and have to sell its assets?' They're not going to be those kind of dislocations.”
The fund will be roughly 95% U.S. stocks, 5% Canadian and Australian—Fernandez said this is because his team is familiar with the U.S. legal system and U.S. regulatory bodies, less so with those of foreign countries.
Fernandez has invested his own money in the venture and has already attracted some outside money, although he would not reveal the fund's current assets under administration. He says the minimum investment is $3 million and he thinks their “sweet spot” would be about $1 billion.
Link to entire article: [www.finalternatives.com]
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.