Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Bruce Berkowitz’s Fairholme Fund Loses Half Its Value and Top Exec Charlie Fernandez

Bruce Berkowitz‘s Fairholme fund can’t seem to catch a break. Fortune reports its assets were cut in half as investors pulled their money out amidst losses and now Charles M. “Charlie” Fernandez left for “other opportunities.”

FAIRHOLME (FAIRX) Bruce Berkowitz

Charlie Fernandez’s Early Success

Charlie Fernandez’s specialty is restructuring. He started at Fairholme four years ago and he was off like a rocket. Fernandez worked a lot of big deals and made a fortune for Fairholme. In 2008, Fernandez helped alexander close to bankruptcy push a lot of loans into the credit markets. Later in 2010, he sorted through one of the largest real estate bankruptcies in history and made it into a fortune by spending months on the telephone to turn the securities he acquired into cash for the fund. All in all, it is estimated that last year Fernandez made Fairholme around $2 billion.

Charlie Fernandez and Bruce Berkowitz

Bruce Berkowitz hired Charlie Fernandez in 2007 after meeting his through a younger cousin. He and Berkowitz became close. Fernandez even moved in beside Berkowitz – they would walk together in the mornings and discuss business. Fortune reports, “Berkowitz joked that it took him a lifetime to find his own Charlie — a nod to Charlie Munger, Warren Buffett‘s longtime partner.” Berkowitz said he was saddened of the move but not shocked. Fairholme fell from $18 billion to $9 billion, after losing on private stake transactions and the plummet of large cap financial stocks that didn’t recover as quickly as investors would have liked.

Loading...