The Fairholme Fund is a big believer in concentrating its assets: The fund holds 15 stocks and the No. 1 holding, Warren Buffett's Berkshire Hathaway ( BRK.A), constitutes 25% of the portfolio. "Broad diversification," the firm explains on its website, "is a hedge against not understanding what you own."The unusual $58 million mid-cap offering invites further explanation, beyond just the huge Berkshire stake and the scant number of holdings. The fund has been an outstanding performer since its late 1999 inception, shedding a mere 1.6% in 2002 and averaging a 14% annual return over the past three years, putting the fund in the top 2% of its category, according to Morningstar. For this week's 10 Questions, I discussed the fund and its philosophy with co-managers Bruce Berkowitz and Larry Pitkowsky, as well as the fund's analyst, Keith Trauner -- three men who have nearly 60 years combined professional investing experience. Berkowitz, a former Smith Barney managing director, founded Fairholme Capital Management in 1997, a $700 million-in-assets firm that primarily manages individual accounts with a $500,000 minimum investment. He launched the fund because he wanted "to put a public face on Fairholme," he said. The fund roared out of the gate in 2000 thanks to contrary bets on Berkshire and other property-casualty insurers, just as tech stocks were about to go bust. Berkowitz and Pitkowsky still are big believers in that sector, but they also have warmed to a few surprising picks, including a small stake in Gateway and, very recently, WilTel Communications, which at 8.54% of the fund's assets is the second-largest holding. Over the following 10 Questions, they explain their fund, their picks and why they believe that buying and holding the right companies is the only way to go.