Fairholme Fund
Figures last verified October 31, 2026
Extreme-concentration deep value under Bruce Berkowitz; a handful of positions, famously dominated by one real estate holding.
In 2010 Morningstar named Bruce Berkowitz its domestic fund manager of the decade; Fairholme held billions and the press called him the next Buffett. What followed is the sharpest star-manager arc in modern fund history: an enormous bet on financials paid off, then bets on Sears and St. Joe didn't, shareholders fled, and the fund shrank by more than 90% from its peak into what is effectively a concentrated holding company for a single real estate stock.
Today's FAIRX is barely a mutual fund in the diversified sense, and owning it means owning Berkowitz's Florida real estate thesis with a 1% wrapper fee. The reason it stays in this database is pedagogical: every era anoints a genius at the top of his streak, the money arrives after the streak, and the dispersion of what happens next is enormous. The index never has a decade-of-the-manager award and never has this story. That's the trade.
A cautionary case study in star-manager risk — not a portfolio recommendation.
FAIRX alternatives & comparable funds
If you’re weighing FAIRX against the field, these are the funds most investors line it up against — same job, different provider, slightly different terms.
| Fund | Family | Expense Ratio | Minimum |
|---|---|---|---|
| FAIRX — Fairholme Fund | Fairholme | 1.00% | $10,000 |
| VVIAX — Vanguard Value Index Fund … | Vanguard | 0.05% | $3,000 |
| DODGX — Dodge & Cox Stock Fund | Dodge & Cox | 0.51% | $2,500 |
| OAKMX — Oakmark Fund (Investor) | Oakmark | 0.89% | $0 |
Frequently asked questions
What is the expense ratio of FAIRX?
FAIRX (Fairholme Fund) has an expense ratio of 1.00%, which works out to roughly $100 per year for every $10,000 invested. That is high relative to index alternatives, and it compounds against you every year, so the fund needs to outperform just to break even versus a cheaper option.
What is the minimum investment for FAIRX?
FAIRX requires a minimum initial investment of $10,000.
What does FAIRX invest in?
Extreme-concentration deep value under Bruce Berkowitz; a handful of positions, famously dominated by one real estate holding. It falls in the large value category and is an actively managed fund.
What are good alternatives to FAIRX?
The funds most often compared with FAIRX are VVIAX, DODGX, OAKMX — broadly similar exposure from different providers, with small differences in fee, minimum, and portability that usually come down to which brokerage holds your account.
Expense ratio and minimum for FAIRX drawn from Fairholme fund documentation; last verified October 31, 2026. Figures change — confirm against the official prospectus before investing. This review is editorial opinion, not investment advice.