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 Ignore the crowd.Fairholme
 
FAIRHOLME 
 Ignore the crowd.
CONFIDENTIAL
‐‐
NOT 
 
INTENDED
 
FOR
 
DISTRIBUTION
 
 Ignore the crowd.Fairholme
This presentation uses Bank of America as a case study to illustrate Fairholme Capital Management’s investment strategy for theFairholme Fund. In the pages that follow, we show Fairholme Fund shareholders why we “ignore the crowd” with regard to Bank of America and other financial companies that currently are out of favor with the market.However, nothing in this presentation should be taken as a recommendation to anyone to buy, hold or sell Bank of America securitiesor any other investment mentioned herein. Our opinion of Bank of America’s prospects should not be considered a guarantee of future events.
Investors are reminded that there can be no assurance that past performance will continue, and that a mutualfund’s current and future portfolio holdings always are subject to risk.
As with all mutual funds, investing in the Fairholme Fundinvolves risk including loss of principal.The Fairholme Fund’s holdings and sector weightings are subject to change. As of August 31, 2011, Bank of America securitiescomprised 6.1% of the Fairholme Fund’s total net assets. The Fairholme Fund’s portfolio holdings are generally disclosed as requiredby law or regulation on a quarterly basis through reports to shareholders or filings with the SEC within 60 days after quarter end. Acomplete list of the Fairholme Fund’s top ten holdings is available on our website atwww.fairholmefunds.com.The Fairholme Fund is non
‐
diversified, which means that it invests in a smaller number of securities when compared to morediversified funds. Therefore, the Fund is exposed to greater individual security volatility than diversified funds. The Fairholme Fund caninvest in foreign securities which may involve greater volatility and political, economic and currency risks and differences in accountingmethods. The Fund may also invest in “special situations” to achieve its objectives. These strategies may involve greater risks thanother fund strategies. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater forlonger
‐
term debt securities. Lower
‐
rated and non
‐
rated securities present greater loss to principal than higher
‐
rated securities.
The Fairholme Fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the Fairholme Fund, and may be obtained by calling shareholder services at 866
‐
202
‐
2263 or visiting our website at www.fairholmefunds.com. Read it carefully before investing.
Additional supplementary information can be found at the end of the presentation.
 
 Ignore the crowd.Fairholme
The
 
Fairholme
 
Fund
 
(FAIRX):
Average
 
Annual
 
Total
 
Returns
 
as
 
of 
 
9/30/2011:
1
 
Year
 
5
 
Year
 
10
 
Year
Fairholme
 
Fund
‐
22.20%
 
0.12%
 
7.15%S&P
 
500
 
1.14%
‐
1.18%
 
2.82%30
‐
Day
 
SEC
 
Yield
‐
0.52%Expense
 
Ratio
 
1.01%
 
*
*Includes
 
acquired
 
fund
 
fees
 
of 
 
.01%.
 
Acquired
 
fund
 
fees
 
and
 
expenses
 
are
 
those
 
expenses
 
incurred
 
indirectly
 
by
 
the
 
Fairholme Fund
 
as
 
a
 
result
 
of 
 
investments
 
in
 
securities
 
issued
 
by
 
one
 
or
 
more
 
investment
 
companies.
Cumulative
 
Returns
 
as
 
of 
 
9/30/2011:
1
 
Year
 
5
 
Year
 
10
 
Year
Fairholme
 
Fund
‐
22.20%
 
0.61%
 
99.57%S&P
 
500
 
1.14%
‐
5.76%
 
32.00%
Performance information quoted above represents past performance and does not guarantee future results. The investment return and  principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.Current performance may be higher or lower than the performance quoted herein. The Fairholme Fund imposes a 2.00% redemption fee onshares held less than 60 days. Performance data does not reflect the redemption fee. If reflected, total returns would be reduced. Fairholme performance numbers assume reinvestment of dividends and capital gains and include all expenses, including acquired fund fees and expensesincurred indirectly by the Fairholme Fund in securities issued by investment companies. While the Fairholme Fund has no front or back loads, or 12b
‐
1 fees, management fees and other expenses still apply. Current month end performance may be obtained by calling Shareholder Servicesat 866
‐
202
‐
2263.
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