The Globe and Mail reports in its Friday edition that after several years of lacklustre
investment returns, chairman Prem Watsa says Fairfax Financial Holdings is
"basically starting from scratch"
after removing all its extensive
equity hedges at the end of last
The Globe's Jacqueline Nelson writes that Mr.
Watsa says that Fairfax's actions
to ease up on its protective
hedges and reduce the duration
of its fixed-income portfolios led
to a $1.2-billion (U.S.) net loss on
its investments in 2016,
and the company's fourth loss in 31 years. Mr. Watsa says that is over now. He wants to return Fairfax
to generating top investment
returns in what he sees as a difficult,
Fairfax's conservative world
view has resulted in the buildup
of $10-billion (U.S.) of cash.
The money is "not going to
burn a hole in our pocket," says Mr.
Watsa. Fairfax has
gone after some large transactions
recently, including a nearly
$5-billion (U.S.) deal for
Allied World Assurance
Company Holdings, which
it has said will be transformative
for its insurance business. Fairfax also wants to
broaden its reach and reputation
as a potential investment partner
for businesses in North
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