Two long-time portfolio managers from the Fairholme Fund [see profile]
are leaving the mothership to start their own asset management shop, the Wall street Journal reports
and Keith Trauner
, who both joined the firm in 1999, are reportedly prepping to launch GoodHaven Capital Management LLC
using the same value-oriented approach as Fairholme does.
The GoodHaven fund will reportedly be highly concentrated, with roughly 15 or 20 holdings but the pair will bet on smaller companies, which is not a market Fairholme bets on these days.
For his part, Bruce Berkowitz
is not involved in the new firm but, in a statement, gave the pair his blessing.
GoodHaven is starting off with separately managed accounts, with a minimum investment of $1 million, in the coming weeks, and will launch its maiden mutual fund in Q2. The firm reportedly has already lined up one outside investor: Markel Corp., a property-and-casualty insurance company, which has made a "significant" minority investment in the new firm.
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