Fairfax 2018

[wondering]

Fairfax does another debt plus warrants deal.  $250 million in 5.5% unsecured debs plus Class A common warrants in Seaspan.

http://splash247.com/fairfax-invests-seaspan/

[racemize]

Fairfax does another debt plus warrants deal.  $250 million in 5.5% unsecured debs plus Class A common warrants in Seaspan.

http://splash247.com/fairfax-invests-seaspan/

UCCMAL, feel like giving us any SSW related updates?  I think this is one you followed for a long while?

[Dazel]

https://timesofindia.indiatimes.com/business/india-business/with-29-growth-indian-mkts-end-2017-with-a-bang/articleshow/62301071.cms

[netnet]

I am not close observer of Fairfax, but from a quick look it seems as if we are in the historically low range of price to book.

[Dazel]

Net Net.
You are correct and that is why I would like to see a big chunk of the float bought back...the holding company should have over $2.5b in cash.

2018 the contrarians will win.

[Dazel]

Buy the shares Prem Buy them hand over fist lets see Fairfax get aggressive......show us how undervalued you think Fairfax is. It’s the only deal in the market.

[racemize]

I've got a rough adjusted book value at $448.5, which includes the $33 BVPS bump on the sale.  Is there more to adjust by?

[chrispy]

As discussed in another thread, the major stock holdings are doing well.  I quickly put this together but need to head off to work.  Only need the share count:

Ticker          Shares   11/2/2017   1/10/2018   % increase   Increase in BV
BB             96,700,000   $10.78   $14.40             33.58%   $350,054,000.00
RFP                   TBD          $5.85   $11.10             89.74%   
EGFEY               TBD           $0.44   $0.52             18.88%   
KW                   TBD           $19.55   $17.75             -9.21%   
IPI                   TBD           $3.91   $4.22             7.93%   
USG                  TBD           $34.45   $39.90             15.82%   

[Dazel]

And just like that...Fairfax is brilliant.
The key to Fairfax is the $40b investment portfolio...and the secret to the math and future earnings as I have stated many times is Brian Bradstreet and the bond portfolio. He is the best bond manager in history I challenge anyone to refute that with his record. No one other than Mr. Buffett has held massive amounts of cash in their portfolios. They have reached for yield and they are about to get smoked. Fairfax will make a killing on the interest rate spike. As we will be able to secure years and years of cash flow. It’s just the beginning of the bond bear market. As usual Brian and Fairfax are ready.

Guns
Gold
And Fairfax

[petec]

And just like that...Fairfax is brilliant.

ha!

Nice to see that the earnings power of a 2y treasury has doubled in the last year, which basically gives us an extra $250m in potential income off a $25bn cash and bond portfolio without taking meaningful duration risk. Lovely to be at the short end when yields rise! Very impressive switch by Bradstreet considering how long he was at the long end for. (Some idiot will whinge that he was 5 months too early but good luck timing it better.)