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 year. 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, stockpicker's market. 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 America.