According to the announcement, the Fairholme Allocation Fund (ticker: FAAFX) seeks long-term total return from capital appreciation and income, and it attempts to achieve this investment objective by “investing in a focused portfolio of investments in the equity, fixed-income and cash and cash-equivalent asset classes”.
The proportion of the fund’s portfolio invested in each asset class will vary from time to time “based on Fairholme’s assessment of relative fundamental values of securities and other investments in the class, the attractiveness of the investment opportunities within each asset class, general market and economic conditions, and expected future returns of investments,” according to the Miami-based firm.
The fund seeks to capitalize on anticipated fluctuations in the financial markets by changing the mix of the Fund’s holdings in the targeted asset classes, and will use Fairholme’s focused, multi-sector, multi-strategy, value-based approach, according to a press release.
The minimum investment to open a new account is $25,000. The minimum subsequent investment for regular accounts is $2,500 and $1,000 for retirement accounts. The annual fund operating expense is 0.75%.
More information is available at http://www.fairholmefunds.com.
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