CORAL GABLES, Fla. & SHORT HILLS, N.J.--(BUSINESS WIRE)--Larry Pitkowsky and Keith Trauner, former portfolio managers of the Fairholme Fund, are pleased to announce the formation of GoodHaven Capital Management, LLC (“GoodHaven”), an investment firm which will have a focused portfolio management strategy and a “go anywhere” mandate, using the tested investment concepts of intrinsic value and margin of safety. GoodHaven plans to take on management of separate accounts for high net worth individuals, institutions, and retirement accounts on or before February 15, 2011 and also expects to launch this strategy in a no-load mutual fund early in the second quarter of 2011.
"Larry and I are looking forward to a long and profitable partnership with our fellow investors and clients," said Keith Trauner, founder and Co-Managing Partner of GoodHaven. “We believe that our disciplined and 'go anywhere' approach will allow us to take advantage of a few carefully chosen opportunities. As managers who are committed to investing a sizeable amount of our personal net worth on the same basis as our clients, we are confident in our strategy and our ability to make money for our clients and ourselves.”
Over the last decade, founders Pitkowsky and Trauner held research, portfolio management, and executive positions with Fairholme Capital Management, LLC (“Fairholme”) and that firm’s affiliated Fairholme Fund. Combined, they have more than 50 years of research and portfolio management experience.
Mr. Pitkowsky joined Fairholme in 1999 and was a Portfolio Manager with the Fairholme Fund from 2002 until 2007 and a member of the firm’s portfolio management team from 1999 until 2007. He also held various other positions, including CEO of FCM Services, an affiliate of Fairholme. Previously, Mr. Pitkowsky worked at Paine Webber as a VP of Investments and Portfolio Manager. He received his BS in Accounting from Rutgers University.
Mr. Trauner joined Fairholme in 1999 and was a Portfolio Manager of the Fairholme Fund from 2006 to 2008. During his tenure at Fairholme, he also served as a Senior Analyst, Portfolio Manager, and Chief Financial Officer of the firm. Keith was also an Officer and Director of Fairholme Funds, Inc., parent company of the Fairholme Fund. Prior to Fairholme, Mr. Trauner was the founder and Chief Executive Officer of an investment advisory subsidiary of a private bank in New York. He received his BA in History from Middlebury College.
Markel Corporation To Act As Strategic Partner
Markel Corporation, a $10 billion asset property/casualty insurance company based in Virginia, will be the firm’s first committed client and has made a significant minority investment in GoodHaven. Larry Pitkowsky, founder and Co-Managing Partner of GoodHaven, said: “We are delighted to have Markel as our partner in launching GoodHaven. The team at Markel has built a unique and successful insurance company using the ‘Markel Style’, is familiar with value investing, and has extended their investing expertise to a variety of private, non-insurance businesses. We couldn’t ask for better partners.”
Tom Gayner, President and Chief Investment Officer of Markel said “We are delighted to partner with the principals of GoodHaven as they launch their firm. We’ve known Larry and Keith for decades and we respect their skills as disciplined and thoughtful investors.”
About GoodHaven Capital Management
GoodHaven Capital Management, LLC was founded in 2010 by Larry Pitkowsky and Keith Trauner to serve the portfolio management needs of high net worth individuals, institutions, and retirement investors seeking a focused and business-like investment approach geared to taking advantage of discrepancies between intrinsic value and market value.
GoodHaven Capital Management, LLC is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority or any state securities regulatory authority. No information contained herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security, or fund.
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