Yep I get the same thing. I posted a comment on the other thread with this same issue. I think I may have figured out why.
http://www.mutualfundobserver.com/discuss/discussion/16006/bonds-what-to-do-now-mfo-s-david-snowball-comments#latest

Yes, interesting interview.
The Fed just said it expects the Fed Funds rate to be 3.75% by the end of 2017. Gross has a strong opinion about what would result:
"The Fed has said that the appropriate interest rate long-term to keep the economy in balance is 3.75% to 4%. I say it’s 2%. If the Fed follows through by raising the federal funds rate to 4% in the next few years, there will be bear markets for all assets."

Interesting interview. Gross doesn't want to talk about Total Bond. He skimmed right over that question whether it might have shown a weakness or anything Pimco related.
Yep, if 1.6% is crushed, I also wonder what 10 or 20% is? The choice of adjectives is becoming of a media hound.

@vintagefreak:
Well when I bought the fund, it was concentrated, but not to this extent.
From Fairholme reports:
In Nov 2008, largest holding Pfizer 18.7%, next Sears 6%
Nov 2009, largest holding Sears 10.6%, Berkshire 10.1%
Nov 2010, largest holding General Growth properties 13%, next AIG 9.2%
Nov 2011, largest holding AIG 26%, AIA Group 11.4%, Sears 10.7%
Nov 2012, largest holding AIG 42.3%, Bank of America 11.5%
I sold when the fund was still doing well (progressively sold over end of 2013 to
beginning of Jan 2014). I should have probably pulled the trigger earlier, but it
was definitely not as a result of a big drop like last week.

Look, i am not trying to start a war. If you sold earlier then you did when vs what and good for you. However then why criticise the fund?
For those who knew w 10 days back it was risky. You waited for the 10 percent drop and then sold. Why did you not sell earlier? If it didnt drop 10% woud-ld you be holding.
One should have reason for holding actively managed fund. Yes, one can change ones mind. However, lets be honest to ourselves. This is MFO. This is not facebook or twitter.

"Switching to the markets, stocks are getting crushed. The Dow Jones industrials have fallen 1.6% from last month’s record high. Is this the beginning of a much steeper selloff?"
If falling 1.6% is "crushed", best hope we don't get an actual "Armageddon" of 10%.

US bond market remains twice equity market...huge:

FYI: Identifying the worst funds of the quarter can be just as meaningful as identifying the best funds.
Regards,
Ted
http://investorplace.com/2014/10/worst-mutual-funds-q3/print

FYI: In an exclusive interview, Pimco’s former boss explains his new role at Janus, and why he thinks interest rates will stay low.
Regards,
Ted
http://online.barrons.com/news/articles/SB51517841841143733463604580184300213564076#printMode

FYI: (Click On Article Title At Top Of Google Search)
U.S. stocks have had a strong, multiyear run, while emerging markets have ... not. According to Burton Malkiel, that means it’s time to move your portfolio abroad.
Regards,
Ted
https://www.google.com/search?newwindow=1&site=&source=hp&q=emerging+markets+where+to+go+barron's&oq=emerging+markets+where+to+go+barron's&gs_l=hp.3...1533.14565.0.14876.37.29.0.8.8.0.141.1993.27j1.28.0....0...1c.1.54.hp..7.30.1694.W1gdFQf9l3A

FYI: (Click on Article Title At Top Of Google Search)
In many ways, Will Danoff and Joel Tillinghast couldn’t be more different—and yet they’re part of the same rare breed. Danoff, a pediatrician’s son and onetime assistant of the superstar investor Peter Lynch, and Tillinghast, descendant of one of Rhode Island’s earliest European settlers, are two of Fidelity Investments’ best investors. Danoff looks for big companies that he thinks will double their earnings over five years, on the theory that stock prices will follow. Tillinghast will only buy stocks that are trading below $35 and appear undervalued despite growing cash flow. Both have built amazing track records: Since he took over Fidelity Contrafund in 1990, Danoff has returned 13.4% a year to investors; Tillinghast, since launching Fidelity Low-Priced Stock in 1989, has returned 14.6%.
Regards,
Ted
https://www.google.com/search?newwindow=1&site=&source=hp&q=fidelity+bright+stars+barron's&oq=fidelity+bright+stars+barron's&gs_l=hp.3...1578.14030.0.14375.30.29.0.1.1.0.83.1928.29.29.0....0...1c.1.54.hp..12.18.1202.bKv4WKDIEeA

@rjb112, you said it better than I. From what I have gleaned from here and other places, BB hasn't been the best communicator to his shareholders either. Now either he is poor in that department or, he didn't want shareholders to get spooked. For the benefit of the doubt I'll go with the first.
Any shareholder should know that when the fund goes off on a different course than what was told that should prompt a decision on whether to continue with the fund or sell and move on. Sounds like you chose wisely.

I had not heard of Fairholme before I came here but it sounds like the fund slowly condensed like cooking on the stove. A lot of shareholders may not have realized what was happening until it was too late.

I think you are exactly correct. People invested in FAIRX because of Bruce Berkowitz and his superb stock managerial skills. Investors in FAIRX did not feel they needed to scour the portfolio and second guess the manager. Then out of the blue one day it's, "What, 50% of my investment is in AIG, common stock plus warrants"? 15% in BAC. Sears....ahhh. St. Joe, another risky stock. Then Freddie and Fannie, whose very existence depends on court cases, super high risk. Add it all up..... All of a sudden, this is not the guy who for years said, "Rule number one, don't lose money"....Rule number 2, don't forget rule number 1". Any FAIRX investor can handle a large weighting in Berkshire Hathaway, because most FAIRX investors are very well disposed towards value and towards Warren Buffett. I sold all my FAIRX at the end of 2013 and first week of 2014. It was the accumulated risk that the portfolio had taken on, and concomitant loss of faith that BB was really following Rule number 1 and Rule number 2, as he had promised.

@vintagefreak:
Well when I bought the fund, it was concentrated, but not to this extent.
From Fairholme reports:
In Nov 2008, largest holding Pfizer 18.7%, next Sears 6%
Nov 2009, largest holding Sears 10.6%, Berkshire 10.1%
Nov 2010, largest holding General Growth properties 13%, next AIG 9.2%
Nov 2011, largest holding AIG 26%, AIA Group 11.4%, Sears 10.7%
Nov 2012, largest holding AIG 42.3%, Bank of America 11.5%
I sold when the fund was still doing well (progressively sold over end of 2013 to
beginning of Jan 2014). I should have probably pulled the trigger earlier, but it
was definitely not as a result of a big drop like last week.

Until I sold FAIRX a couple of days ago I had owned it for over 10 years. Over the years BB drifted from being a deep value focused manager to a swing for the fences style.

I'm sure many FAIRX shareholders sold this week. The below was posted on another message board just yesterday:
"I solved the problem. I am done with Bruce Berkowitz as of the close of business today. Sears is up about 7% right now so I hope that helps a little bit to lessen today's losses. I made very good gains over the last 7 years and cashed out of this investment vehicle from this once RESPONSIBLE money manager."
[bolding mine]

FYI: (Click On Article title At Top Of Google Search)
The stunning departure of Bill Gross from Pimco raises important questions for investors.
Regards,
Ted
https://www.google.com/search?newwindow=1&site=&source=hp&q=bonds:+what+to+do+now+wsj&oq=bonds:+what+to+do+now+wsj&gs_l=hp.3...1108.10777.0.11108.25.25.0.0.0.0.107.1772.24j1.25.0....0...1c.1.54.hp..2.23.1650.zTN_pt2RgPI

Until I sold FAIRX a couple of days ago I had owned it for over 10 years. Over the years BB drifted from being a deep value focused manager to a swing for the fences style. When management changes, through style drift or manager turnover, we are faced with bad choices: sell and incur tax costs or stay put and hope for the best. To me that is the most frustrating thing about active managment and the most compelling argument for indexing. Even when investing in indexes underperforms, you are not forced to sell and pay taxes prematurely because the manger is no longer what you invested in originally. I have to admit that despite that I still keep a healthy portion of my assets actively managed. Perhaps against my better judgement.

@bee, no doubt. "This fund has had many more great years as this 10 year performance chart shows."
By the way, the 2.55% YTD from 9/30/14 is now -8% as of yesterday, but up 1.77% today with good performance by Freddie and Fannie.
And possibly the 3 best years (on a relative performance basis) were 2000, 2001 and 2002. Breathtaking performance relative to the market. You would never know that was a bear market, looking at FAIRX.

Here is the 9/30/14 prospectus:
http://www.sec.gov/Archives/edgar/data/1406305/000119312514363150/d799559d497.htm

If history rhymes this just might be a good year to dca into additional shares of FAIRX.
Similar to 2011 when the fund was in the 100th percentile of LV funds, 2014 is looking much the same. The fund was in the 96th percentile as of Sept 30th so I will venture a guess it is in sole possession of the cellar today.
This fund has had many more great years as this 10 year performance chart shows.

To me the key is that the manger's investments be consistent with the fund's stated goal that caused us to invest in it in the first place. BB repeatedly says his first rule is not lose money. Digging a huge hole every couple of years and then taking big risks to get out of it is not consistent with his first rule

@ValueSeeker, you have a very good point about BB's emphasis of his first rule. And his second rule is don't forget the first rule. .

Wasn't that Buffett's "rule".

Not sure I ever heard/read Berkowitz say it. Berkowitz's thing has always been "ignoring the crowd" (sometimes the crowd is right) and lately, he seems to have taken to anything resembling something TBTF.

Yeah, it's always been BB's first and second rule. He's expressed it many times, as ValueSeeker says. Here's some documentation. But I certainly agree with you, lately he has taken to anything resembling TBTF, systemically important companies, etc.
http://fortune.com/2010/12/10/bruce-berkowitz-the-megamind-of-miami/
Quoting from the article: "As he is fond of saying, “The first rule is: Don’t lose money. The second rule is: Follow the first rule.”"