Q1 2016 Results

[gfp]

They are total return swaps for the most part - derivatives contracts negotiated with counterparties, not exchange-traded.  There was a thread here some time ago that discussed them:

 

http://www.cornerofberkshireandfairfax.ca/forum/fairfax-financial/questions-about-ffh-equity-hedges/

 

Any idea is their hedge (russell index short)... do they own put options or are they selling index futures?

[nwoodman]

All very good points. I have not sold a FFH share for 6 years. Though i am less comfortable with the company now vs back then. I am astounded at how many recent investments have seemed to have lost all their value. I would love to hear management say we have learned some lessons in this area that we will not make again.

 

It still puzzles me that with Fairfax India they want to partner with the best companies and management. With FFH it seems to be the opposite. Can anyone explain why they appear to have two different strategies?

 

I am slow to change and will still hold my shares, but it is getting harder....:)

 

 

I'm with you brother. I'm holding my nose more than I ever thought I would. I totally get the deflation bet and the hedging. It's pretty much why I bought this stock. Their stock picking, however, is too often atrocious, indefensible and bordering on amateurish... if not already there. I simply don't get their thinking or analysis.

 

Bank of Ireland was a home run even if it was a Kennedy Wilson pick.  Its off from its highs but they also managed to take some money off the table too