Jump to content

Fairfax to launch India fund after Modi victory


bearprowler6

Recommended Posts

thanks for posting!  Prem continues to build a solid presence in India and one day it may become a "crown jewel " for FFH. India has a lot of potential and under Modi may one day give China a run for its money.....

 

cheers

Zorro

Link to comment
Share on other sites

Now this is something I've been waiting for. 

 

I've been following the Indian elections, and I do think this will be a transformational event for India.  Would love to invest in India alongside FFH.

Link to comment
Share on other sites

Guest longinvestor

I find the swiftness of FFH's announcement, as the election results came out to be impulsive. Nothing is guaranteed when it comes to righting the Indian economy, it is a road full of boulders and potholes to work around. Heck, I thought it was just me (or folks like me) who invested impulsively.

Link to comment
Share on other sites

Guest longinvestor

It seems in his last visits Prem might have visited Gujarat,india  where Modi was State minister for 12 years before he ran national election and won by big margin. You would able to see marked difference between overall india vs gujarat.

 

Rgds.

 

Very familiar with what's happened in Gujarat. The hope that Gujarat will be replicated across India is what this election was about. There is another read on Gujarat's success that goes back far longer than the 12 years Modi was CM. Capital has been shifting from other parts of India (Mumbai in particular) and from overseas Indians into Gujarat for twenty + years. Gujarat embodies entrepreneurship in a pointed way relative to the rest of India. Not to take anything away from Modi, he has created a model.

 

I was not talking about India's elections, rather, the thread of impulsiveness shown of late by FFH (Prem). Greece, BBRY, the sale of JNJ, WFC, LVLT holdings (stated previously to be long term), issuing equity without explanation last year etc. This had been nagging me about FFH for the past few years and made me sell out after holding for 10 years. FFH will do all right, Prem is a good investor and has a great team and all that but I could not resist pointing out the impulse they show, just like this time as the election results were barely being announced. Or maybe he is just that darned good at predicting macro events that impulse is just what the doctor ordered. Assuming India's economic future under Modi is all but secure is as macro as it gets. Good luck to FFH holders.

Link to comment
Share on other sites

I would say this is not really macro, but a case of healing some self inflicted injury. It got extremely bad with the previous government. No clearances and a complete decision making paralysis. Even something close to normal level of action (by indian standards) would improve the situation. So if modi does even 30% of what he has promised, then the impact would be big. In addition, if you look at the track record of the previous BJP government (the party to which he belongs), it is quite good in terms of investment in infrastructure etc.

The previous government has set such a low bar, that is close of impossible to go below that.

Link to comment
Share on other sites

 

I was not talking about India's elections, rather, the thread of impulsiveness shown of late by FFH (Prem). Greece, BBRY, the sale of JNJ, WFC, LVLT holdings (stated previously to be long term), issuing equity without explanation last year etc. This had been nagging me about FFH for the past few years and made me sell out after holding for 10 years. FFH will do all right, Prem is a good investor and has a great team and all that but I could not resist pointing out the impulse they show, just like this time as the election results were barely being announced. Or maybe he is just that darned good at predicting macro events that impulse is just what the doctor ordered. Assuming India's economic future under Modi is all but secure is as macro as it gets. Good luck to FFH holders.

 

IMHO there is nothing impulsive at all about acting fast when something you know a lot about offers an opportunity.  Prem obviously knows India backwards, with strong personal and professional links.  What on earth is impulsive about announcing a fund to make investments there, when a reformist government has won a landslide?  To me that shows great planning and preparation, combined with a willingness to act at key moments.    The worst case is that India carries on as normal and a good value investor gets to hunting there; and the best case is that India reforms, providing a nice tailwind for that value investor.

Link to comment
Share on other sites

I agree with Petec, they are not using their own money but are immediately giving a big vote of confidence to the incoming administration. That can't hurt when they are dealing with regulators for the existing businesses in India.

Link to comment
Share on other sites

I would love for Fairfax to buy 100% of Chou funds and uses it as a platform for future Fairfax global funds. This works 2 folds, you bring a high caliber fund manager back in house in Francis Chou and have a solid platform to rollout globally.  (They have Brazilian operations, why can't that be the next area?)

 

Tks

S

Link to comment
Share on other sites

  • 5 months later...

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...