I found a good discussion on Bruce Berkowitz’s involvement in the real estate company St. Joe & Company (JOE, Financial) by Chuck Jaffe with The Seattle Times.
Excerpt:
Read the full text here.
Excerpt:
Fund managers are supposed to do what is best for their shareholders.
Corporate executives and directors are supposed to do what is best for their stockholders.
Sometimes those goals are at odds with each other, which is why fund managers seldom make active attempts to become corporate executives or directors. In fact, when managers step out of their role and into the corporate board room, it should immediately raise red flags for investors.
So when Bruce Berkowitz, manager of the Fairholme Fund, waged a proxy fight for control of St. Joe Co., it raised eyebrows. Berkowitz has done everything necessary to minimize conflicts and problems, but that doesn't mean his case doesn't fire the signal flares pointing out why it may not be wise to let a manager's focus stray.
Read the full text here.
