Skip to Content
Fund Times

Fund Times: Fairholme Raises Minimum Investment

New T. Rowe Price fund, new indexing methodology patent, and more.

Mentioned: , , , , , , , , ,

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.

To view this article, become a Morningstar Basic member.

Register for Free

Ryan Leggio has a position in the following securities mentioned above: FAIRX. Find out about Morningstar’s editorial policies.