After Fernandez exit, Fraenkel joins Fairholme

Fairholme Capital Management LLC is beefing up its executive ranks with the addition of Fred Fraenkel as chief research officer. Mr. Fraenkel, 62, joined Fairholme earlier this month from Beacon Trust Co., where he was vice chairman. “I had been thinking a lot about what I wanted to do as the last major involvement of my career,” Mr. Fraenkel said of the decision to join the Miami-based firm founded by Bruce Berkowitz. Fairholme manages $11.8 billion in asset. The new executive position does not fill the void left by Charlie Fernandez, who unexpectedly resigned Oct. 17 from his post as president and portfolio manager. Mr. Fernandez joined the firm in 2008. Management at Fairholme did no give a reason for his sudden departure. RELATED Fund firms advisers stick with Mr. Berkowitz was not available for comment regarding Mr. Fernandez. Mr. Fraenkel, who brings with him more than 30 years of financial services industry experience, will have three main areas of responsibility. “I will supervise and direct the activities of our research staff, as well as help to enunciate our investing strategy by ramping up our education process,” he said. “And I will be acting as an adviser and consultant to Bruce.” In a prepared statement, Mr. Berkowitz said: “Fred's expertise in explaining investments and managing research personnel makes me confident he will succeed.”