Ritholtz said he is cutting Berkowitz’s fund from his recommended best of breed mutual funds.
From an investor’s perspective, all of the above is nonsense. It appears to have been a distraction to Berkowitz, and Fairholme Funds performance has suffered.
So we fired him.
To be blunt, I have no interest in the outcome of this fight, These are two smart guys, and both are excellent managers. But I don’t want client’s to be the kids caught in the middle of a divorce, collateral damage of two parents arguing. Its a huge distraction, and it is not why we selected Berkowitz’s fund in the first place. It was easy to replace his value fund with the dividend SPX index (SDY), which cut the management fees to the investor by 60%.
Ritholtz gives lists five reasons to fire a manager at his blog.
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