Fund Evaluator:
Fairholme Focused Income (FOCIX)
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Best Performing in Moderately Conservative Allocation Over the Last Year
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Fund Details
Fairholme Focused Income Overview
Fairholme Focused Income (FOCIX) is an actively managed Allocation Moderately Conservative Allocation fund. Fairholme launched the fund in 2009.
The investment seeks current income. The fund invests in a focused portfolio of cash distributing securities. To maintain maximum flexibility, the securities in which it may invest include corporate bonds and other corporate debt securities of issuers in the U.S. and foreign countries, bank debt (including bank loans and participations), government and agency debt securities of the U.S. and foreign countries, convertible bonds and other convertible securities, and equity securities, including preferred and common stock of issuers in the U.S. and foreign countries, interests in PTPs, and interests in REITs. The fund is non-diversified.
About Fairholme Focused Income (FOCIX)
There are 1 members of the management team with an average tenure of 16.51 years: Bruce Berkowitz (2009). Management tenure is more important for actively managed funds than passive index funds.
The fund has 1 primary benchmark: Bloomberg US Agg Bond TR USD index with a weighting of 100%. Fairholme Focused Income has 14 securities in its portfolio. The top 10 holdings constitute 94.5% 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 Focused Income is part of the Allocation global asset class and is within the Allocation fund group. Fairholme Focused Income has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 59.1%. There is 0.0% allocated to foreign stock, and 2.4% 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 Focused Income has 38.5% of the portfolio in cash.
Assets Under Management
The fund has $221 million in total assets, which is below the $563 million average for the Moderately Conservative Allocation 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.
FOCIX 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 Focused Income expense ratio is high compared to funds in the Moderately Conservative Allocation category. Fairholme Focused Income has an expense ratio of 1.01%, which is the same as its category average, making the fund expense ratio grade a C. 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 Focused Income has a portfolio turnover rate of 3%, indicating that holds its assets around 0.3 years. By way of comparison, the average portfolio turnover is 43% for the Moderately Conservative Allocation category.
Recently, in the month of June 2026, Fairholme Focused Income returned 1.8%, which earned it a grade of A, as the Moderately Conservative Allocation category had an average return of 0.1%. 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 Focused Income has a trailing yield of 1.63%, which is below the 3.33% category average. The fund normally distributes its income quarterly 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 Focused Income Grades
Year to date, the fund has returned 8.5%, 3.4 percentage points better than the category, which translates into a grade of A. The fund has returned 11.6% over the past year (grade of C), 11.8% over the past three years (grade of A) and 9.8% per year over the past five years (grade of A) and 7.2% per year over the past 10 years (grade of A).
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FOCIX 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 |
|
| FOCIX Return (NAV) | 1.8% | 1.8% | 11.6% | 11.8% | 9.8% | 7.2% |
| FOCIX Grade | A | F | C | A | A | A |
| +/- Category | 1.8% | -3.5% | 0.3% | 1.7% | 4.9% | 1.0% |
| Moderately Conservative Allocation Avg | 0.1% | 5.3% | 11.3% | 10.1% | 4.9% | 6.2% |
| FOCIX Tax Cost Ratio | na | na | 0.7% | 1.0% | 0.9% | 1.2% |
FOCIX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| FOCIX Return (NAV) | 8.5% | 6.7% | 14.7% | 12.6% | 6.0% | 6.7% | 1.0% | 7.4% | -6.9% | -0.5% | 32.3% |
| FOCIX Grade | A | F | A | A | A | F | F | F | F | F | A |
| +/- Category | 3.4% | -4.8% | 6.3% | 2.6% | 17.8% | -3.3% | -7.0% | -8.2% | -2.6% | -10.4% | 23.8% |
| Moderately Conservative Allocation Avg | 5.1% | 11.5% | 8.3% | 10.0% | -11.8% | 10.0% | 8.0% | 15.6% | -4.3% | 9.8% | 8.5% |
| Risk Measures | |
| Standard Deviation: | 8.0% |
| Total Risk Index: | 0.65 - Below Average |
| Category Risk Index: | 1.09 - High |
| Category Risk Grade: | F (84% Rank) |
| Beta: | 0.28 |
| R-Squared: | 11% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Mid-Cap Value |
| Bond Investment Style: | na |
| Yield: | 1.6% |
| Dividend Distribution: | Quarterly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $221 Mil |
| Fund Total Assets: | $ 222 Mil |
| Share Class Type: | No Load |
| Portfolio Turnover: | 4% |
Management Team
| Number of Managers: 1 | |||
| Longest Tenure: 16.5 years | |||
| Average Tenure: 16.5 years | |||
| Managers (Year): Berkowitz Bruce (2009) | |||
Portfolio Composition (as of 2/28/26)
| # of Holdings: | 14 |
| % in Top 10 Holdings: | 94.5% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 0.0% |
Portfolio Allocation |
|
| Domestic Stock: | 59.1% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 2.4% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 38.5% |
Purchase Information
| Fund Family: | Fairholme |
| Phone Number: | 866-202-2263 |
| Website: | www.fairholmefunds.com |
| Status: | Open |
| Inception Date: | December 31, 2009 |
| 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: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 1.01% ( Rating : High ) |
| Category Average Expense Ratio (%): | 1.01% |
| Share Class: | Fairholme Focused Income |
| Min. Subsequent Purchase: | $1,000 |
| Min. Subsequent IRA Purchase: | $1,000 |
