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Fairholme Allocation FAAFX or The Fairholme Focused Income Fund (FOCIX) for 401

edited April 2011 in Fund Discussions
Thinking of putting 25K into one of these funds for 401K. Any other good funds in this catergory? Does anyone know how much cash FAAFX is sitting on? There is no public info that I have seen.


  • I bought into the allocation fund, FAAFX, about a month ago in my 401k. My hope is that because the fund has low assets (now anyway), a go anywhere mandate and Bruce Berkowitz at the helm, this fund will be as good or better than FAIRX, especially in poor markets. That's my hope. So far the fund is down about 5% from it's high. I can't figure out what he is invested in, but we should know soon. I think the fund has to publish it's holding every 6 months (?).

    Your choice between the allocation fund or the bond fund would put you in very different categories. Berkowitz has said the allocation fund is not a balanced fund with equity picks from FAIRX and fixed income picks from FOCIX. It can invest in any category, sector, or country without limits. It may end up being more volatile than the equity fund and certainly more than the bond fund. You need to decide if it's a bond fund or an allocation fund that fits best in your portfolio. And Berkowitz is a contrarian. His focused funds could be out of favor if he makes a bad decision. But, he has been right more often than not, so I'm betting on this horse.

    Good luck.
  • Dear equalizer: In my opinion, never invest in anything your don't understand. Until Berkowitz puts up a fact sheet on his web site for FAAFX with the asset allocation for the fund and has a track record, at least one year, wait to buy.
  • I don't know if anyone else has already mentioned this, but Morningstar now has an asset allocation as well as AUM for FAAFX listed. Still no portfolio holdings, though.
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