Fairholme Funds, Inc. December 2015 Dividends and Distributions

MIAMI--()--On December 11, 2015, the Fairholme Fund (NASDAQ: FAIRX) distributed an Ordinary Income Dividend of $0.60016 per share and a Long-Term Capital Gain distribution of $12.31160 per share to shareholders of record as of December 10, 2015. The Fairholme Fund’s Net Asset Value (“NAV”) was reduced by the total amount of the distribution.

The Record Date, Ex-Dividend Date, Payable Date, and Dollars-Per-Share are as follows:

               

Distribution
Type

    Record Date    

Ex-Dividend
Date

    Payable Date    

Dollars-Per-
Share

Ordinary
Income

    December 10, 2015     December 11, 2015     December 11, 2015     $ 0.60016

Long-Term
Capital Gain

    December 10, 2015     December 11, 2015     December 11, 2015     $ 12.31160
Total                       $ 12.91176
 

For more details, please see our Q&A at: www.fairholmefundsinc.com/Bulletin/Q&A2015.pdf

THE FAIRHOLME FOCUSED INCOME FUND (FOCIX)

On December 11, 2015, the Fairholme Focused Income Fund (NASDAQ: FOCIX) distributed an Ordinary Income dividend of $0.13154 per share, a Short-Term Capital Gain* distribution of $0.02332 per share, and a Long-Term Capital Gain distribution of $0.05012 per share to shareholders of record as of December 10, 2015. The Fairholme Focused Income Fund’s Net Asset Value (“NAV”) was reduced by the total amount of the distribution.

The Record Date, Ex-Dividend Date, Payable Date, and Cents-Per-Share are as follows:

               

Distribution
Type

    Record Date    

Ex-Dividend
Date

    Payable Date    

Cents-Per-Share

Ordinary
Income

    December 10, 2015     December 11, 2015     December 11, 2015     $ 0.13154

Short-Term
Capital Gain*

    December 10, 2015     December 11, 2015     December 11, 2015     $ 0.02332

Long-Term
Capital Gain

    December 10, 2015     December 11, 2015     December 11, 2015     $ 0.05012

Total

                      $ 0.20498
 

*Net short-term capital gains, when distributed, are generally taxable as ordinary income and are reported as Ordinary Dividends on Form 1099-DIV.

THE FAIRHOLME ALLOCATION FUND (FAAFX)

On December 11, 2015, the Fairholme Allocation Fund (NASDAQ: FAAFX) distributed an Ordinary Income dividend of $0.30785 per share, a Short-Term Capital Gain* distribution of $0.21901 per share, and a Long-Term Capital Gain distribution of $1.10940 per share to shareholders of record as of December 10, 2015. The Fairholme Allocation Fund’s Net Asset Value (“NAV”) was reduced by the total amount of the distribution.

The Record Date, Ex-Dividend Date, Payable Date, and Dollars-Per-Share are as follows:

               

Distribution
Type

    Record Date    

Ex-Dividend
Date

    Payable Date    

Dollars-Per-
Share

Ordinary
Income

    December 10, 2015     December 11, 2015     December 11, 2015     $0.30785

Short-Term
Capital Gain*

    December 10, 2015     December 11, 2015     December 11, 2015     $0.21901

Long-Term
Capital Gain

    December 10, 2015     December 11, 2015     December 11, 2015     $1.10940
Total                       $1.63626
 

*Net short-term capital gains, when distributed, are generally taxable as ordinary income and are reported as Ordinary Dividends on Form 1099-DIV.

Past performance is not a guarantee of future results.

Investing in the Funds involves risks including loss of principal. The Funds’ investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the Funds, and it may be obtained by calling Shareholder Services at 1-866-202-2263 or visiting our website www.fairholmefunds.com. Read it carefully before investing.

The Fairholme Fund is non-diversified, which means that The Fairholme Fund invests in a smaller number of securities when compared to more diversified funds. Therefore, The Fairholme Fund is exposed to greater individual stock volatility than a diversified fund. The Fairholme Fund also invests in foreign securities, which involve greater volatility and political, economic and currency risks, and differences in accounting methods. The Fairholme Fund may also invest in “special situations” to achieve its objectives. These strategies may involve greater risks than other fund strategies.

The Fairholme Focused Income Fund (the “Income Fund”) is a non-diversified mutual fund, which means that the Income Fund invests in a smaller number of securities when compared to more diversified funds. This strategy exposes the Income Fund and its shareholders to greater risk of loss from adverse developments affecting portfolio companies. The Income Fund’s investments are also subject to interest rate risk, which is the risk that the value of a security will decline because of a change in general interest rates. Investments subject to interest rate risk will usually decrease in value when interest rates rise and rise in value when interest rates decline. Also, securities with long maturities typically experience a more pronounced change in value when interest rates change. Debt securities are subject to credit risk (potential default by the issuer). The Income Fund may invest without limit in lower-rated securities. Compared to higher-rated fixed income securities, lower-rated debt may entail greater risk of default and market volatility.

The Fairholme Allocation Fund (the “Allocation Fund”) is a non-diversified mutual fund, which means that the Allocation Fund can invest in a smaller number of securities when compared to more diversified funds. The Allocation Fund may invest in lower-rated securities, which may have greater market risk. This strategy exposes The Allocation Fund and its shareholders to greater risk of loss from adverse developments affecting portfolio companies. The allocation of investments among the different asset classes, such as equity or fixed-income asset classes, may have a more significant effect on The Allocation Fund’s net asset value when one of these classes is performing more poorly than others.

Fairholme Distributors, LLC (12/15)

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Fairholme Funds, Inc.
Jodi Lin, 305-358-3000

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