Fairholme Funds Losing Money – and Board Members, Too
Nicole Crum was quoted in the article, "Fairholme Funds Losing Money – and Board Members, Too," [sub. req.] which was published by Board IQ on February 25, 2020.
The article describes changes in the Fairholme Funds, including the departure of more than 40% of the funds' directors in early February, shortly after the funds' chief compliance officer departed and after continued losses in assets of the fund group's flagship product.
Nicole Crum cites potential conflicts of interest and a likely need to recuse themselves on certain matters as reasons for the departure of directors Howard Frank and Cesar Alvarez. Nicole added, “It’s typically not advisable to reduce the size of a board just because AUM is down. Sometimes when assets dip, it’s all the more reason to keep people on the board. You don’t want to compromise the decision making on a board just because of costs.”