Notable story about portfolio holding Fairfax Financial Holdings (FFH/NYSE):
"During our third quarter conference call on October 31, 2008, I
disclosed that we had reduced our equity portfolio hedging from 100%
to 65% of our equity investment portfolio and of course that at some
point we may remove the hedge on our equity portfolio. That day has
come," said Prem Watsa, Chairman and Chief Executive Officer. "Given
the unprecedented decline of the equity markets during the past
several months, we felt it was prudent to promptly inform our
shareholders that we closed out our equity index total return swaps
this week and effectively eliminated our equity portfolio hedge.
While we believe the recession may be long and deep, we also believe
that stock prices may have already discounted the worst of the
economic decline. As value investors, we are finding an incredible
number of investment opportunities across the world. That said, in
the short term we recognize that stock markets can continue to fall
significantly."
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