Performance information quoted above represents past performance and does not guarantee future results. The investment return and
principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original
cost. Current performance may be higher or lower than the performance quoted herein. The fund imposes a 2.00%
redemption fee on shares held less than 60 days. Performance data does not reflect the redemption fee. If reflected, total returns would be
reduced. Current month end performance may be obtained by calling Shareholder Services at 866-202-2263 or visiting our website
www.fairholmefunds.com.
The Adviser defines free cash flow as the cash
a company would generate annually from operations after all cash outlays necessary to maintain the business in its current
condition. Book Value is the net asset value of a company, calculated by subtracting total liabilities from total assets.
The opinions expressed are those of the author and/or Fairholme Capital Management, LLC and should not be considered a forecast of
future events, a guarantee of future results, nor investment advice.
Investing in the Fund involves risk including loss of principal.The Fund is non-diversified, which means that the Fund invests in a smaller
number of securities when compared to more diversified funds.Therefore, the Fund is exposed to greater individual stock volatility than a
diversified fund. The Fund also invests in foreign securities which involve greater volatility and political,
economic and currency risks and differences in accounting methods. The Fund may also invest in “special situations” to achieve its
objectives. These strategies may involve greater risks than other fund strategies. Investments in debt securities typically
decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Lower-rated and non-rated
securities present greater loss to principal than higher-rated securities.
Fund
holdings and/or sector weighting are subject to change and should not be
considered recommendations to buy or sell any securities.
Current
and future portfolio holdings are subject to risk.
Top
Ten Holdings as of November 30, 2009
(Holdings may include both equity and fixed income securities of certain issuers mentioned below. Top holdings exclude cash, money market funds & U.S. Treasury Bills.)
| Sears Holdings Corp. |
10.6% |
|
WellPoint, Inc. |
5.2% |
| Berkshire Hathaway, Inc. |
10.1% |
|
Burlington Northern Santa Fe Corp. |
4.6% |
| AmeriCredit
Corp. |
7.0% |
|
Hertz Global Holdings, Inc. |
4.6% |
| The St. Joe Co. |
5.4% |
|
General Growth Properties |
4.2% |
| Humana,
Inc. |
5.4% |
|
Citigroup, Inc. |
4.2% |
The
S&P 500 Index is a broad based unmanaged index of 500 stocks, which
is widely recognized as representative of the equity market in general.
Investors cannot invest directly in an index or average. We compare the performance of the Fairholme Fund to the indices mentioned in the transcript only as an indication of the general state of the markets in which we invest.
Must
be preceded or accompanied by a prospectus.
PFPC
Distributors, Inc.
*
Includes Acquired funds fee of .02%. Acquired Funds Fees and Expenses
are those incurred indirectly by the Fund as a result of investments in
shares of one or more investment companies, including, but not limited
to, money market funds.