V.I.P. Model Agency | Mutual Fund Managers

The V.I.P. Model Agency issue is that only a handful of mutual fund managers have ever had the sort of epic run that Bruce Berkowitz (and his investors) enjoyed. In the first decade of this century, his 13.2 % annual returns obliterated the S&P 500, which averaged 1% yearly losses. He was crowned U.S. stock manager of the decade by Morning Star, and Fortune anointed him the Megamind of Miami in a late 2010 profile. Then came 2011. Berkowitz's Fairholme Fund plunged 32% amid huge losses in stocks like AIG, Sears, and Bank of America.



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