Newly open to outside capital, Fairholme Capital Management's year-old hedge fund isn't disappointing.
The Fairholme Partnership returned 33% last year, in line with the broader markets and significantly more than the average hedge fund. Given the stock-market rally last year, it's no surprise: The fund is a long-only vehicle and had net exposure of 100% last year.
Fairholme opened the fund to investors in October, when it was up only 23%. The fund has since grown from $140 million to more than $200 million; Fairholme hopes to raise at least $1 billion from institutional investors for the vehicle.