Bruce Berkowitz, the star mutual fund manager of Fairholme Capital Management, is opening the hedge fund he launched earlier this year to institutional investors.
The Wall Street Journal reported that the hedge fund, which launched on January 1 with capital from Berkowitz and his employees, is seeking external money to grow the $140 million fund to $1 billion within the next year. The hedge fund is currently not open to retail investors.
Berkowitz told the Journal that Fairholme’s mutual fund business will not be affected by the firm’s hedge fund push, and “is interested only in hedge-fund investors who share his long-term philosophy and can stomach volatility.”
Based in Miami, Fairholme has approximately $10.5 billion in assets.