This Fund Is One of 2017's Biggest Disappointments
Fairholme Fund hasn't lived up to expectations.
From its Dec. 29, 1999, inception through November 2017, Fairholme (FAIRX) doubled the S&P 500's return. But really it is a story of two halves. The record from 2000 to the end of 2010 was absolutely remarkable, and the record from 2011 to today is remarkably dismal.
We recommended the fund for most of that time, so your opinion of the fund has a lot to do with when you owned it. I wrote earlier about funds we upgraded in 2017, so I thought I'd write here about a fund that has declined in my view. We downgraded the fund's Morningstar Analyst Rating to Neutral in September 2016. We first made the fund an Analyst Pick in March 2005.
Russel Kinnel does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.