Fairholme’s Berkowitz Raises Money for Institutional Fund

Oct. 7 (Bloomberg) --- Bruce Berkowitz, manager of the $8.3 billion Fairholme Fund (FAIRX), is opening a private fund for institutional investors who agree to tie up their money for at least one year.

Fairholme Partnership LP has a minimum $5 million investment and can buy a broad range of securities, Miami-based Fairholme Capital Management LLC said yesterday in an e-mailed statement. The fund started in January with money from employees and currently oversees about $140 million. It returned 23 percent through Sept. 30, according to the statement.

Berkowitz, who was named Morningstar Inc.’s domestic stock manager of the decade in 2010, said in February that he wanted to move beyond mutual funds and create a less restrictive vehicle that allowed him to tie up capital for longer periods and buy as much of a stock as he wanted.

The Fairholme Fund, a mutual fund, gained 29 percent this year, better than 97 percent of peers. The fund had 44 percent of its assets in New York-based insurer American International Group Inc. (AIG) as of May 31, according to data compiled by Bloomberg.

To contact the reporter on this story: Charles Stein in Boston at cstein4@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net

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