Bruce Berkowitz’s Fairholme Funds Inc. is offering a new fund – The Fairholme Allocation Fund. Before this launching, the firm has been offering an equity centric fund – Fairholme Fund and a fix-income fund – Fairholme Focused Income Fund. The new offering is presumably somewhere in-between.
Here is the objective and investment strategy of new fund, according to the firm’s SEC filing on October 25, 2010:
This is pretty much boiler plate stuff. We just have to see how it goes in the coming years.
Also check out:
Here is the objective and investment strategy of new fund, according to the firm’s SEC filing on October 25, 2010:
The Fund seeks long-term total return. The Fund's investment objective is non-fundamental and may be changed without shareholder approval.
Under normal circumstances, the Fund seeks to achieve its investment objective by investing opportunistically in a focused portfolio of investments in the equity, fixed-income and cash and cash-equivalent assets classes. The proportion of the Fund's portfolio invested in each asset class will vary from time to time based on the Manager's assessment of relative fundamental values of securities and other investments in the class, the attractiveness of investment opportunities within each asset class, general market and economic conditions, and expected future returns of other investment opportunities. The Fund may invest in any, all or none of these asset classes at any given time. There is no limitation on the amount of the Fund's portfolio that may be allocated to any one of these asset classes. The Fund may, for example, invest up to 100% of its portfolio in any one of these asset classes at any point in time.
The Fund seeks to capitalize on anticipated fluctuations in the financial markets by changing the mix of the Fund's holdings in the targeted asset classes. The investment process involves an evaluation of the financial markets corresponding to the targeted asset classes and the future opportunities for growth of those markets and an evaluation of the securities and other investments within each target asset class and the future opportunities for appreciation (through growth and income) of those securities and investments.
The Fund may invest in securities and other investments without regard to the jurisdictions in which the issuers of the securities are organized or situated and without regard to the market capitalizations or sectors of the issuers. The Fund may also invest in securities without regard to maturity or the rating of the issuer of the security.
The equity securities in which the Fund invests include common and preferred stock (including convertible preferred stock), partnership interests, business trust shares, interests in REITs, rights and warrants to subscribe for the purchase of equity securities and depository receipts. The fixed-income securities in which the Fund invests include corporate debt securities of issuers in the U.S. and foreign countries, bank debt (including bank loans and participations), government and agency debt securities of the U.S. and foreign countries, bank loans and loan participations, convertible bonds and other convertible securities, including preferred and common stock and interests in REITs. These fixed-income securities may be rated by NRSROs, such as Moody's or S&P, or may be unrated. The Fund may invest without limit in lower-rated securities, which are those securities rated below "Baa" by Moody's or below "BBB" by S&P or that have comparable ratings from other NRSROs or, if unrated, are determined to be comparable to lower-rated debt securities by the Manager. Additional information about the bond ratings of the NRSROs can be found in Appendix A.
This is pretty much boiler plate stuff. We just have to see how it goes in the coming years.
Also check out:
