With Bruce Berkowitz closing his mutual funds (FAIRX, FOCIX, FAAFX) to new investors, there looms a question on the ability of mutual funds to perform well under the regulatory constraints. The question also arises for individual investors about what they should be investing in. Should they rush into one of the Fairholme funds before the doors close for good or should they look at the stocks that Bruce would rather be more exposed to and simply invest in those directly?
Bruce covers this topic in more depth in an interview on Bloomberg…