Ex-Fairholme managers launch fund

As promised and ahead of schedule, veteran money managers Larry Pitkowsky and Keith Trauner have launched the first mutual fund from their new firm, Goodhaven Capital Management LLC. The co-managing partners and co-portfolio managers rolled out the Goodhaven Fund last Monday, about three months after founding the asset management firm, through which they also manage separate accounts. The fund will be managed similarly to the way Mr. Pitkowsky and Mr. Trauner helped manage the $20 billion Fairholme Fund at Fairholme Capital Management LLC. The money managers, who have more than 50 years of asset management experience between them, each spent about a decade at Fairholme before transitioning into consulting roles a few years ago. In describing the new firm, Mr. Pitkowsky explained, “We don't need to create an empire.” That kind of tidy perspective also is reflected in the management style of the new fund, which is designed to hold between 15 and 25 stocks, with the bulk of the assets concentrated in the top 10 holdings. “The primary strategy is to find decent businesses that are run by smart and honest people, that we can buy at a decent price,” said Mr. Trauner. “The nice thing about being a concentrated manager is we don't need a lot of great ideas, we just need a few.” The managers said it is too soon to discuss specific portfolio positions, but Mr. Pitkowsky made it clear that “the fund can go anywhere.” E-mail Jeff Benjamin at jbenjamin@investmentnews.com.