Fairholme president resigns as weak performance buffets firm

THE president and co-manager of Fairholme Capital Management has resigned, as the $8.9bn (£5.6bn) mutual fund firm continues to suffer from bets on financial stocks and a real-estate development company.

Charles Fernandez, who was also a director, stepped down on 17 October for what Fairholme chief Bruce Berkowitz said were “personal reasons”.

Fred Fraenkel, the former head of research for Lehman Brothers, will become Fairholme’s chief research officer, and Dan Schmerin, a former Treasury Department official who oversaw its Public-Private Investment Programme, will become director of special situations.

The company’s flagship Fairholme Fund lost 26 per cent of its net asset value this year through to 21 October.