# EDGAR Filing Document

**Accession Number:** 0001096344
**File Stem:** 0001193125-26-127922
**Filing Date:** 2026-3
**Character Count:** 23734
**Document Hash:** 63c3c756c4718ff2fdfdefa4dd482537
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-127922.hdr.sgml**: 20260327

**ACCESSION NUMBER**: 0001193125-26-127922

**CONFORMED SUBMISSION TYPE**: 497K

**PUBLIC DOCUMENT COUNT**: 3

**FILED AS OF DATE**: 20260327

**DATE AS OF CHANGE**: 20260327

**EFFECTIVENESS DATE**: 20260327

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** FAIRHOLME FUNDS INC
- **CENTRAL INDEX KEY:** 0001096344

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1130

**FILING VALUES:**
- **FORM TYPE:** 497K
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-88517
- **FILM NUMBER:** 26802239

**BUSINESS ADDRESS:**
- **STREET 1:** 5966 SOUTH DIXIE HIGHWAY
- **STREET 2:** SUITE 300
- **CITY:** SOUTH MIAMI
- **STATE:** FL
- **ZIP:** 33143
- **BUSINESS PHONE:** 305-358-3000

**MAIL ADDRESS:**
- **STREET 1:** 5966 S DIXIE HWY
- **STREET 2:** SUITE 300
- **CITY:** SOUTH MIAMI
- **STATE:** FL
- **ZIP:** 33143

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FAIRHOLMES FUNDS INC
- **DATE OF NAME CHANGE:** 19991005

## Series and Classes Contracts Data

### The Fairholme Focused Income Fund (Series ID: S000027309)

| Class ID   | Class Name                        | Ticker Symbol   |
|:---|:---|:---|
| C000082377 | The Fairholme Focused Income Fund | FOCIX           |

![LOGO](g943464g59h13.jpg)

**THE FAIRHOLME FOCUSED INCOME FUND (FOCIX)** 

A no-load, non-diversified fund seeking current income

**SUMMARY PROSPECTUS** 

March 27, 2026

**A series of** 

FAIRHOLME FUNDS, INC.

**Managed by** 

FAIRHOLME CAPITAL MANAGEMENT

Before you invest, you may want to review the Fund's Prospectus,

which contains more information about the Fund and its risks.

The Fund's Prospectus and Statement of Additional Information,

both dated March 27, 2026, as may be amended or

supplemented, are incorporated by reference into this

Summary Prospectus. For free paper or electronic copies of the

Fund's Prospectus and other information about the Fund, go to

www.fairholmefunds.com/prospectus, email a request to

investorrelations@fairholme.net, call (866) 202-2263, or ask any

financial advisor, bank, or broker-dealer who offers shares of the Fund.

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**THE FAIRHOLME FOCUSED INCOME FUND** 

**("The Income Fund")** 

**Investment Objective** 

The Income Fund seeks current income.

**Fees and Expenses of the Fund** 

The following table describes the fees and expenses you may pay if you buy, hold and sell shares of The Income Fund. **You may be required to pay commissions and/or other forms of compensation to a broker for transactions in shares of The Income Fund, which are not reflected in the tables or the Example below.** 

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;**SHAREHOLDER FEES** | &nbsp;&nbsp;&nbsp;**SHAREHOLDER FEES** |
| &nbsp;&nbsp;&nbsp;(Fees Paid Directly From Your Investment) | &nbsp;&nbsp;&nbsp;(Fees Paid Directly From Your Investment) |
| &nbsp;&nbsp;&nbsp; Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None |
| &nbsp;&nbsp;&nbsp; Maximum Deferred Sales Charge (Load) (as a percentage of amount redeemed) | None |
| &nbsp;&nbsp;&nbsp; Maximum Sales Charge (Load) Imposed on Reinvested Dividends and Other Distributions (as a percentage of amount reinvested) | None |

---

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;**ANNUAL FUND OPERATING EXPENSES** | &nbsp;&nbsp;&nbsp;**ANNUAL FUND OPERATING EXPENSES** |
| &nbsp;&nbsp;&nbsp;(Expenses That You Pay Each Year As A Percentage Of The<br>Value Of Your Investment In The Income Fund) | &nbsp;&nbsp;&nbsp;(Expenses That You Pay Each Year As A Percentage Of The<br>Value Of Your Investment In The Income Fund) |
| &nbsp;&nbsp;&nbsp; Management Fees | 1.00% |
| &nbsp;&nbsp;&nbsp; Distribution (12b-1) Fees |  |
| &nbsp;&nbsp;&nbsp; Other Expenses | 0.01% |
| &nbsp;&nbsp;&nbsp; Total Annual Fund Operating Expenses<sup>(a)</sup> | 1.01% |

---

<sup>(a)</sup> This table does not reflect the application of the management fee waiver discussed in the section of the Prospectus entitled "Investment Management," pursuant to which the Manager (defined below) has agreed to waive, on a voluntary basis, a portion of the management fee of The Income Fund to the extent necessary to limit the management fee paid to the Manager by The Income Fund to an annual rate of 0.80% of the daily average net asset value of The Income Fund ("Undertaking"). This Undertaking may be terminated by the Manager upon 60 days' written notice to The Income Fund. 

For more information about the management fee, see the "Investment Management" section of the Prospectus. "Other Expenses" include acquired fund fees and expenses, which are incurred indirectly by The Income Fund as a result of The Income Fund's investing in securities issued by one or more investment companies, including money market funds. Please note that the Total Annual Fund Operating Expenses in the table above does not correlate to the Ratio of Net Expenses to Average Net Assets found within the "Financial Highlights" section of the Prospectus, which reflects the actual operating expenses of The Income Fund for the fiscal year ended November 30, 2025.

**Example** 

This Example is intended to help you compare the cost of investing in The Income Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in The Income Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that The Income Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**1 Year** | **3 Years** | **5 Years** | **10 Years** |
| &nbsp;&nbsp;&nbsp;$103 | $322 | $558 | $1236 |

---

The amounts shown do not reflect the application of the Undertaking.

**Portfolio Turnover** 

The Income Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when The Income Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect The Income Fund's performance. During the most recent fiscal year, The Income Fund's portfolio turnover rate was 3.95% of the average value of its portfolio.

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**Principal Investment Strategies** 

Fairholme Capital Management, L.L.C. (the "Manager"), the investment adviser to The Income Fund, attempts, under normal circumstances, to achieve The Income Fund's investment objective by investing in a focused portfolio of cash distributing securities. To maintain maximum flexibility, the securities in which The Income Fund may invest include corporate bonds and other corporate debt securities of issuers in the U.S. and foreign countries, bank debt (including bank loans and participations), government and agency debt securities of the U.S. and foreign countries (including U.S. Treasury bills), convertible bonds and other convertible securities, and equity securities, including preferred and common stock of issuers in the U.S. and foreign countries, interests in publicly traded partnerships ("PTPs"), and interests in real estate investment trusts ("REITs"). The Income Fund's portfolio securities may be rated by one or more nationally recognized statistical rating organizations ("NRSROs"), such as Moody's Ratings ("Moody's") or S&P Global Ratings ("S&P"), or may be unrated. The Manager may invest in securities for The Income Fund without regard to maturity or the rating of the issuer of the security. The Income Fund may invest without limit in lower-rated securities (or "junk bonds"). Lower-rated securities are those rated below "Baa" by Moody's or below "BBB" by S&P or that have comparable ratings from other NRSROs or, if unrated, are determined to be comparable to lower-rated debt securities by the Manager.

Although The Income Fund normally holds a focused portfolio of securities, The Income Fund is not required to be fully invested in such securities and may maintain a significant portion of its total assets in cash and securities generally considered to be cash equivalents. In certain market conditions, the Manager may determine that it is appropriate for The Income Fund to hold a significant cash position for an extended period of time.

The Income Fund may also use other investment strategies and invest its assets in other types of investments, which are described in the section in the Prospectus entitled "Additional Information about the Funds' Investments and Risks," and in The Income Fund's Statement of Additional Information ("SAI").

**Principal Risks of Investing in The Income Fund** 

**General/Market Risks.** The market values of securities or other investments that The Income Fund holds may fall, sometimes rapidly or unpredictably, or fail to rise for various reasons including changes or potential or perceived changes in U.S. or foreign economies, financial markets, interest rates, tax rates, the liquidity of investments and other factors including terrorism, war, regional and global conflicts, natural disasters and public health events and crises, including disease/virus outbreaks and epidemics. The resulting short-term and long-term effects and consequences of such events and factors on global and local economies and specific countries, regions, businesses, industries, and companies cannot necessarily be foreseen or predicted. From time to time, certain market segments (such as equity or fixed income), investment styles (such as growth or value), or other investment categories, may fall out of favor which may impair the value of an investment in The Income Fund. An investment in The Income Fund could lose money over short or long periods.

**Publicly Traded Partnership Risk.** The Income Fund invests in PTPs, which are limited partnerships the interests in which (called "units") are traded on public exchanges. PTPs are subject to the risks associated with their underlying assets or operating companies, which typically include assets or companies in the oil and gas sectors. PTPs are also subject to tax risk, as PTPs typically receive pass-through tax treatment and would be adversely affected if they were to lose such status. Losses from a PTP are generally considered passive and cannot offset income other than income or gains relating to the same entity. Other risks of investing in PTPs may include, among others, potential lack of liquidity of PTP units, interest rate risk, limitations on the unitholder's voting and distribution rights, potential conflicts of interest between a PTP and its general partner, and the possibility of the PTP's general partner requiring unitholders to sell their units at an undesirable price or time.

**Focused Portfolio and Non-Diversification Risks.** The Income Fund may have more volatility and is considered to have more risk than a fund that invests in securities of a greater number of issuers because changes in the value of a single issuer's securities may have a more significant effect, either negative or positive, on the net asset value ("NAV") of The Income Fund. The Income Fund is considered to be "non-diversified" under the 1940 Act, which means that The Income Fund can invest a greater percentage of its assets in the securities of fewer issuers than a diversified fund. To the extent that The Income Fund invests its assets in the securities of fewer issuers, The Income Fund will be subject to greater risk of loss if any of those securities decreases in value or becomes impaired. To the extent that The Income Fund's investments are focused in a particular issuer, region, country, market, industry, asset class or other category, The Income Fund may be susceptible to loss due to adverse occurrences affecting that issuer, region, country, market, industry, asset class or other category.

**Equity Risk.** The Income Fund is subject to the risk that stock and other equity security prices may fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of The Income Fund's equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility.

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**Small- to Mid-Capitalization Risk.** Investments in small- and mid-capitalization companies may be more volatile than investments in large-capitalization companies. Investments in small- to mid-capitalization companies may have additional risks because, among other things, these companies have limited product lines, markets or financial resources.

**Industry/Sector Risk.** To the extent The Income Fund invests or maintains a significant portion of its assets in one or more issuers in a particular industry or industry sector, The Income Fund will be subject to a greater degree to the risks particular to that industry or industry sector. Market or economic factors affecting issuers in that industry, group of related industries or sector could have a major effect on the value of The Income Fund's investments and NAV. The Income Fund has invested in the securities of issuers in the oil and gas sectors, which include storage, transportation and exploration services. These investments expose The Income Fund to the risks of the oil and gas sectors generally, and of those issuers, including changes in regulations; fluctuations in commodity prices and interest rates; changes in supply and demand for energy products; depletion of resources; development of alternative energy sources; extreme weather conditions and natural disasters; and terrorist attacks.

**Cash Position Risk.** To the extent that The Income Fund holds large positions in cash or cash equivalents, there is a risk of lower returns and potential lost opportunities to participate in market appreciation.

**Interest Rate Risk.** Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations. Changing interest rates may have unpredictable effects on the markets, may result in heightened market volatility and may detract from the performance of The Income Fund. In addition, changes in monetary policy may exacerbate the risks associated with changing interest rates.

**Inflation Risk.** This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of The Income Fund's assets can decline as can the value of The Income Fund's distributions. This risk increases as The Income Fund invests a greater portion of its assets in fixed-income securities with longer maturities.

**Illiquid Investments Risk.** The Income Fund's investments are subject to illiquid investments risk. This is the risk that the market for a security or other investment cannot accommodate an order to buy or sell the security or other investment in the desired timeframe, possibly preventing The Income Fund from selling these securities at an advantageous price. This risk includes the risk that legal or contractual restrictions on the resale of a security may affect The Income Fund's ability to sell the security when deemed appropriate or necessary by the Manager. Derivatives and securities involving substantial market and credit risk tend to involve greater illiquid investments risk, and, in certain circumstances, illiquid investments risk may be greater for a particular security as a result of, among other things, changes in the markets relating to that security, increased selling of the security by market participants or increases in the size of the holding relative to other fund holdings or to the issuer's total issuance. Over recent years illiquid investments risk has increased because the capacity of dealers in the secondary market to make markets in securities has decreased, even as overall markets have grown significantly, due to, among other things, structural changes, additional regulatory requirements and capital and risk restraints that have led to reduced inventories. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline. Market turbulence and volatility in the U.S. and non-U.S. financial markets may increase the risks associated with an investment in The Income Fund. This risk also includes the risk that trading on an exchange may be halted because of market conditions.

**An investment in The Income Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Further discussion about other risks of investing in The Income Fund may be found in the section in the Prospectus entitled "Additional Information about the Funds' Investments and Risks," and in The Income Fund's SAI.** 

**Past Performance** 

The bar chart and table set out below show The Income Fund's historical performance, and provide some indication of the risks of investing in The Income Fund by showing changes in The Income Fund's performance from year to year and by showing how The Income Fund's average annual total returns for the 1-, 5-, and 10-year periods and since inception compare to the performance of the Bloomberg U.S. Aggregate Bond Index. The Bloomberg U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, fixed-rate agency mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities (agency and non-agency). Because indices cannot be invested in directly, these index returns do not reflect a deduction for fees, expenses or taxes. The Income Fund's past performance (before and after taxes) is not necessarily an indication of how The Income Fund will perform in the future. Updated performance information for The Income Fund may be obtained by calling 1-866-202-2263.

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**Annual Returns of The Income Fund for the Last 10 Calendar Years**![LOGO](g943464g01k01.jpg)

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| | |
|:---|:---|
| **Best Quarter – 4th Qtr 2016: +14.96%** | **Worst Quarter – 1st Qtr 2020: -9.53%** |

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**Average Annual Total Returns for The Income Fund (for the periods ended December 31, 2025)** 

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Portfolio Returns** | **1 Year** | **5 Years** | **10 Years** | **Since Inception**<br> **(12/31/2009)** |
| &nbsp;&nbsp;&nbsp; Return Before Taxes | 6.69% | 9.28% | 7.56% | 7.05% |
| &nbsp;&nbsp;&nbsp; Return After Taxes on Distributions | 6.02% | 8.46% | 6.28% | 5.40% |
| &nbsp;&nbsp;&nbsp; Return After Taxes on Distributions and Sale of The Income Fund Shares | 4.07% | 6.99% | 5.49% | 4.94% |
| &nbsp;&nbsp;&nbsp; Bloomberg U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes) | 7.30% | -0.36% | 2.01% | 2.67% |

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The theoretical "after-tax" returns shown in the table are calculated using the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes. **Your actual "after-tax" returns depend on your personal tax situation and may differ from the returns shown above**. Also, "after-tax" return information is not relevant to shareholders who hold shares of The Income Fund through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts ("IRAs").

**Investment Adviser** 

Fairholme Capital Management, L.L.C., the Manager, provides investment advisory services to The Income Fund.

**Portfolio Manager** 

Bruce R. Berkowitz, Chief Investment Officer of the Manager, and both the President and a Director of Fairholme Funds, Inc. (the "Company"), has been The Income Fund's lead portfolio manager since The Income Fund's inception. Mr. Berkowitz is responsible for the day-to-day management of The Income Fund's portfolio.

**Purchase and Sale of The Income Fund Shares** 

Purchases of shares of The Income Fund are subject to the following minimum investment amounts (which may be waived by the Manager in its discretion):

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp; **Minimum Investment**<br> **To Open Account** | $10,000<br> for Regular Accounts | $6,000<br> for IRAs |
| &nbsp;&nbsp;&nbsp; **Minimum Subsequent Investment**<br> **(Non-Automatic Investment Plan Members)** | $1,000 for Regular Accounts and IRAs | $1,000 for Regular Accounts and IRAs |
| &nbsp;&nbsp;&nbsp; **Minimum Subsequent Investment**<br> **(Automatic Investment Plan Members)** | $250 per month minimum | $250 per month minimum |

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Shareholders eligible to purchase shares of The Income Fund may do so through their financial intermediaries or by contacting The Income Fund: (i) by telephone at 1-866-202-2263; (ii) by mail addressed to Fairholme Funds, Inc., P.O. Box 534443,

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Pittsburgh, PA 15253-4443; (iii) by overnight delivery addressed to Fairholme Funds, Inc., Attention: 534443, 500 Ross Street, 154-0520, Pittsburgh, PA 15262; or (iv) online at www.fairholmefunds.com.

The Income Fund reserves the right to limit the sale of shares to new investors and existing shareholders at any time. The Income Fund may reject any order to purchase shares, and may withdraw the offering of shares at any time to any or all investors. In the absence of adequate notification to The Income Fund in accordance with the Fairholme Funds Large Transaction Notification Policy, The Income Fund also reserves the right (i) to reject or delay a purchase order or an exchange order in excess of $5 million, or (ii) with respect to a redemption order in excess of $5 million, delay up to seven days after acceptance of the order the delivery of redemption proceeds or of portfolio securities for a redemption in-kind.

Shareholders may redeem shares of The Income Fund through their financial intermediaries or by contacting The Income Fund: (i) by telephone at 1-866-202-2263; (ii) by mail addressed to Fairholme Funds, Inc., P.O. Box 534443, Pittsburgh, PA 15253-4443; (iii) by overnight delivery addressed to Fairholme Funds, Inc., Attention: 534443, 500 Ross Street, 154-0520, Pittsburgh, PA 15262; or (iv) online at www.fairholmefunds.com.

**Tax Information for The Income Fund** 

The Income Fund intends to make distributions that may be taxed as ordinary income or capital gains.

**Payments to Broker-Dealers and Other Financial Intermediaries** 

If you purchase shares of The Income Fund through a broker-dealer or other financial intermediary (such as a bank), The Income Fund and its related companies may pay the intermediary for certain administrative and shareholder servicing functions. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary to recommend The Income Fund over another investment. Ask your salesperson or visit your financial intermediary's website for more information.