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Fund managers stake

edited February 2013 in Fund Discussions
I just received my most recent fund performance update from the Fairholme Fund. The manager, Bruce Berkowitz holds nearly 23% of the outstanding shares in the fund. I wonder where his interest lies in terms of seeing that the fund does well.

Comments

  • If he owns 23% of the shares, I'd say he has a strong interest in seeing that the fund does well. I don't always agree with Berkowitz (see SHLD - I still believe Berkowitz should have taken the profit when he had it when SHLD was over $100), but I will say that I think he's an excellent investor overall.
  • Reply to @scott: According to the update as of November 30, 2012 he owns 10,487,264 shares of the 233,953,597 shares outstanding.
  • Reply to @Mark: Which would be 4.3% of the outstanding shares. At $32/share, he stake is something like $320 million of the $7.4 billion in the fund.

    Which also implies that he lost . . . oh, $10 million on Monday.

    David
  • Reply to @David_Snowball: Oops, I should know better. My apologies. Fat-fingered calculator entries or something. Anyway, I doubt he's sweating too much about the $10 million as he also stated in his update that he expected the value of shares in the fund to be significantly higher by years end. I will be watching.
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