The Megamind of Miami. Nope, Not Lebron

One of the best performing mutual fund managers for the past ten years is Bruce Berkowitz. His $17 billion Fairholme Fund has an annualized return of 11.6% over 10 years in which the S&P 500 has risen just 0.7% a year on average for the same period.

The fund normally keeps a double digit percentage of cash and keeps a very concentrated portfolio. Currently, the top five holdings make up nearly 40% of the portfolio.

In this Fortune profile, Berkowitz talks about why he stepped away from the northeast financial world and moved the operations to the Miami area. Yes – no income tax and warm weather were factors, but also

“the biggest reason was that he wanted to put some space between himself and Wall Street. In Short Hills, his office was in a building with several other money-management firms. And no matter where he went in town, he was in danger of running into know-it-all investors who might pollute his thinking. “I had to get away,” he says.”

Will he falter like others that have when high flying funds grow too large? There’s a chance and even Berkowitz is candid on the subject in the profile.

A very interesting read.

– Don Kincaid
Disclosure: I own shares of the Fairholme Fund.


About donkincaid

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