Fund Evaluator:
Fairholme (FAIRX)
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Best Performing in Miscellaneous Sector Over the Last Year
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Fund Details
Fairholme Overview
Fairholme (FAIRX) is an actively managed Sector Equity Miscellaneous Sector fund. Fairholme launched the fund in 1999.
The investment seeks long-term growth of capital. Under normal circumstances, to achieve the fund's investment objective by investing in a focused portfolio of equity and fixed-income securities. It may invest in common and preferred stock, interests in PTPs, business trust shares, depository receipts, rights and warrants to subscribe for the purchase of equity securities, and interests in REITs. The fund may invest in U.S. corporate debt securities, non-U.S. corporate debt securities, bank debt, U.S. government and agency debt securities, short-term debt obligations of foreign governments and foreign money market instruments. It is non-diversified.
About Fairholme (FAIRX)
There are 1 members of the management team with an average tenure of 26.52 years: Bruce Berkowitz (1999). Management tenure is more important for actively managed funds than passive index funds.
The fund has 1 primary benchmark: S&P 500 (TR) (1970) index with a weighting of 100%. Fairholme has 13 securities in its portfolio. The top 10 holdings constitute 99.6% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Fairholme is part of the Equity global asset class and is within the Sector Equity fund group. Fairholme has 2.7% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 88.4%. There is 2.7% allocated to foreign stock, and 0.2% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Fairholme has 8.7% of the portfolio in cash.
Assets Under Management
The fund has $1 billion in total assets, which is above the $95 million average for the Miscellaneous Sector category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
FAIRX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Fairholme expense ratio is high compared to funds in the Miscellaneous Sector category. Fairholme has an expense ratio of 1.00%, which is 31% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Fairholme has a portfolio turnover rate of 1%, indicating that holds its assets around 0.8 years. By way of comparison, the average portfolio turnover is 21% for the Miscellaneous Sector category.
Recently, in the month of June 2026, Fairholme returned -1.0%, which earned it a grade of C, as the Miscellaneous Sector category had an average return of -1.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Fairholme has a trailing yield of 0.55%, which is above the 0.52% category average. The fund normally distributes its income annually and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Fairholme Grades
Year to date, the fund has returned 4.9%, 15.0 percentage points worse than the category, which translates into a grade of D. The fund has returned 27.2% over the past year (grade of C), 10.8% over the past three years (grade of C) and 8.1% per year over the past five years (grade of B) and 9.1% per year over the past 10 years (grade of F).
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FAIRX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| FAIRX Return (NAV) | -1.0% | -0.4% | 27.2% | 10.8% | 8.1% | 9.1% |
| FAIRX Grade | C | C | C | C | B | F |
| +/- Category | 0.2% | -1.9% | 5.0% | -6.6% | 1.8% | -6.5% |
| Miscellaneous Sector Avg | -1.2% | 1.5% | 22.2% | 17.5% | 6.3% | 15.6% |
| FAIRX Tax Cost Ratio | na | na | 0.2% | 0.2% | 0.1% | 0.4% |
FAIRX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| FAIRX Return (NAV) | 4.9% | 29.5% | -17.4% | 46.7% | -20.5% | 6.9% | 46.9% | 32.1% | -23.2% | -6.0% | 25.7% |
| FAIRX Grade | D | B | F | A | D | C | D | A | D | F | A |
| +/- Category | -15.0% | 19.0% | -45.5% | 45.9% | -15.3% | -6.3% | 8.2% | 5.0% | -5.6% | -34.2% | 17.9% |
| Miscellaneous Sector Avg | 19.9% | 10.5% | 28.1% | 0.8% | -5.2% | 13.2% | 38.7% | 27.1% | -17.6% | 28.2% | 7.8% |
| Risk Measures | |
| Standard Deviation: | 27.0% |
| Total Risk Index: | 2.22 - High |
| Category Risk Index: | 0.93 - Average |
| Category Risk Grade: | C (53% Rank) |
| Beta: | 1.16 |
| R-Squared: | 30% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Small-Cap Growth |
| Bond Investment Style: | na |
| Yield: | 0.6% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $1273 Mil |
| Fund Total Assets: | $1,273 Mil |
| Share Class Type: | No Load |
| Portfolio Turnover: | 1% |
Management Team
| Number of Managers: 1 | |||
| Longest Tenure: 26.5 years | |||
| Average Tenure: 26.5 years | |||
| Managers (Year): Berkowitz Bruce (1999) | |||
Portfolio Composition (as of 2/28/26)
| # of Holdings: | 13 |
| % in Top 10 Holdings: | 99.6% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 2.7% |
Portfolio Allocation |
|
| Domestic Stock: | 88.4% |
| Foreign Stock: | 2.7% |
| Preferred Stock: | 0.2% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 8.7% |
Purchase Information
| Fund Family: | Fairholme |
| Phone Number: | 866-202-2263 |
| Website: | www.fairholmefunds.com |
| Status: | Open |
| Inception Date: | December 29, 1999 |
| Min. Initial Purchase: | $10,000 |
| Min. Initial IRA Purchase: | $6,000 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 2.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 1.00% ( Rating : High ) |
| Category Average Expense Ratio (%): | 1.44% |
| Share Class: | Fairholme |
| Min. Subsequent Purchase: | $1,000 |
| Min. Subsequent IRA Purchase: | $1,000 |
