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Fairholme's Cash Stake: What's Next?

Fairholme's Bruce Berkowitz says the fund's cash position is in the mid- to high teens, and he's optimistic about today's opportunities.


Michael Breen: [It's] obviously a very target rich environment for you. You typically have cash levels around 20, and they'd gone down, I think maybe even below 10, which for most managers is high, but for you it's low. Where is that at now? Are you still seeing...

Bruce Berkowitz: As I publicly stated, we're back to sort of our historic ranges of mid- to high teens. Right now, we feel very good. The Fairholme Fund, as we talked, we're up about 9%. We're coming up on our 10th anniversary. Even with a bad year last year, we've averaged about 11.5% per annum.

Michael Breen does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.