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.

Larry Pitkowsky 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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