Fund Times: Fairholme Raises Minimum Investment
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Fairholme Raises Minimum Investment
Starting Dec. 1, new investors will need $10,000 instead of $2,500 to start regular and IRA accounts at Bruce Berkowitz's Fairholme (FAIRX) fund. The fund's minimum for additional investments will remain $1,000.
Fairholme is imposing the new higher minimum in the wake of saying it will launch a new focused bond fund that will have a $25,000 minimum. Berkowitz prefers a higher investment minimum because it helps keep the fund's total expense ratio lower for all investors. Smaller accounts are more costly for fund firms than bigger ones.
Ryan Leggio has a position in the following securities mentioned above: FAIRX. Find out about Morningstar’s editorial policies.