Fairholme Fund Cash Position Weight vs. Price To Earning
| FAIRX Fund | USD 31.32 0.40 1.26% |
For Fairholme Fund profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Fairholme Fund to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well The Fairholme Fund utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Fairholme Fund's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of The Fairholme Fund over time as well as its relative position and ranking within its peers.
Fairholme |
Fairholme Fund Price To Earning vs. Cash Position Weight Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Fairholme Fund's current stock value. Our valuation model uses many indicators to compare Fairholme Fund value to that of its competitors to determine the firm's financial worth. The Fairholme Fund is one of the top funds in cash position weight among similar funds. It also is one of the top funds in price to earning among similar funds reporting about 0.21 of Price To Earning per Cash Position Weight. The ratio of Cash Position Weight to Price To Earning for The Fairholme Fund is roughly 4.80 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Fairholme Fund's earnings, one of the primary drivers of an investment's value.Fairholme Price To Earning vs. Cash Position Weight
Percentage of fund asset invested in cash equivalents or risk-free instruments. About 40% of all global funds carry cash on their balance sheet.
Fairholme Fund |
| = | 18.10 % |
Funds or ETFs that have over 40% of their value invested in low-risk instruments or cash equivalents typically attract conservative investors.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Fairholme Fund |
| = | 3.77 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Fairholme Price To Earning Comparison
Fairholme Fund is currently under evaluation in price to earning among similar funds.
Fairholme Fund Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Fairholme Fund, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Fairholme Fund will eventually generate negative long term returns. The profitability progress is the general direction of Fairholme Fund's change in net profit over the period of time. It can combine multiple indicators of Fairholme Fund, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Under normal circumstances, to achieve the funds investment objective by investing in a focused portfolio of equity and fixed-income securities. It may invest in common and preferred stock, interests in PTPs, business trust shares, depository receipts, rights and warrants to subscribe for the purchase of equity securities, and interests in REITs. The fund may invest in U.S. corporate debt securities, non-U.S. corporate debt securities, bank debt, U.S. government and agency debt securities, short-term debt obligations of foreign governments and foreign money market instruments. It is non-diversified.
Fairholme Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Fairholme Fund. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Fairholme Fund position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Fairholme Fund's important profitability drivers and their relationship over time.
Use Fairholme Fund in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Fairholme Fund position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fairholme Fund will appreciate offsetting losses from the drop in the long position's value.Fairholme Fund Pair Trading
The Fairholme Fund Pair Trading Analysis
The ability to find closely correlated positions to Fairholme Fund could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Fairholme Fund when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Fairholme Fund - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling The Fairholme Fund to buy it.
The correlation of Fairholme Fund is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Fairholme Fund moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Fairholme Fund moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Fairholme Fund can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Fairholme Fund position
In addition to having Fairholme Fund in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Exotic Funds Thematic Idea Now
Exotic Funds
Funds or Etfs with high minimum investment requirement that manage portfolios of alternative investments such as hedge funds, options, futures, real estate or commodities. The Exotic Funds theme has 45 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Exotic Funds Theme or any other thematic opportunities.
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Other Information on Investing in Fairholme Mutual Fund
To fully project Fairholme Fund's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Fairholme Fund at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Fairholme Fund's income statement, its balance sheet, and the statement of cash flows.
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