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M* on FAIRX: massive withdrawals + highly concentrated positions in small cap companies = a possible rout in those companies' shares (and FAIRX's NAV) if withdrawals continue.
I'm guessing this concern is a bit lower in FAAFX, where he owns most of the fund.
Berkowitz in the interview fought this back, says funds have lots of cash, bonds, liquidity, no leverage.
I'm in the pumpkin patch too, but I don't want to be the last one there. Then again, at this stage, may just be long-suffering investors like us in there.
So glad I didn't drink the Kool-aid. After reviewing the top 10 holdings (that would constitute about 80% of the entire fund), lots of beaten down stocks like Sears for good reasons. Not my type of manager I want to hire to loss my money.
Comments
I'm guessing this concern is a bit lower in FAAFX, where he owns most of the fund.
Berkowitz in the interview fought this back, says funds have lots of cash, bonds, liquidity, no leverage.
@Charles, any thoughts?
I'm in the pumpkin patch too, but I don't want to be the last one there. Then again, at this stage, may just be long-suffering investors like us in there.