“At December 31, 2013, the value of a $10.00 investment in the Fund at its inception was worth $55.09 (calculated by assuming reinvestment of distributions into additional fund shares) compared to $16.47 for the S&P 500. FAIRX returned almost seven times more than the S&P 500 (INDEXSP:.INX) on a $10.00 investment over 14 years,” says Bruce Berkowitz in his annual report on the Fairholme Fund (MUTF:FAIRX) for the year ended December 31, 2013.
“Of the $55.09, the year-end share price (net asset value per share) was $39.20 and the value of distributions reinvested was $15.89. This difference, more than anything, demonstrates how the Fund has outperformed the market (as represented by the S&P 500) over the long run,” he adds.
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