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Fairfax down 8% this morning


wknecht
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Its beeing kicked out of MSCI Index .. as it failed liquidity test by a small amount...

 

 

there couldn't have been a better opportunity to buy at under book (which i estimate at 370 after brick etc)

 

how did you find that out

 

if that s the reason I agree it a good opportunity to buy

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Expected indexer flows for Addition/Deletions to the MSCI Canada Index

 

Ticker Name                                 Weighting Change - bps Index Demand / (Supply) x/ADV Add / Delete

DOL         DOLLARAMA                         36.38             1,724,000 4.77x ADDITION

FFH         FAIRFAX FINANCIAL HLDGS -59.80             (488,000) 15.13x DELETION

PD         PRECISION DRILLING                   -13.41           (5,765,000) 1.47x DELETION

 

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Lakeside,

 

Thanks for the find - I am curious on the question previously posed. How did you know, does MSCI send out email alerts on these announcements? And how did you know it was for 10bps of liquidity?

 

Thx.

 

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Wish I had been looking first thing this morning.  Seems to be rebounding already, just picked some up at $355.  Anyone add at the lows?

I wonder if Fairfax got a little bit. Still not enough volume to buy back too much. Myself I have to preclear trades through my employer which is frustratingly slow.

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Wish I had been looking first thing this morning.  Seems to be rebounding already, just picked some up at $355.  Anyone add at the lows?

 

I bought FRFHF at $345.87 this morning.  I only bought 50 shares because that is all the cash I had available in the account and I already have so much FRFHF already.  My portfolio basically amounts to positions in 2 companies now.  FRFHF and BAC (common, warrants & options).  Other than that I only have a handful of 1-3% positions which is basically just my watch list.  I've never been this concentrated before.

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Lakeside,

 

Thanks for the find - I am curious on the question previously posed. How did you know, does MSCI send out email alerts on these announcements? And how did you know it was for 10bps of liquidity?

 

Thx.

 

I have access to some mkt data that probably isn't easily available right away to public .... as i work in the equity mkt industry  .. I will leave it at that for now ...

 

 

 

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Thank you for this info!  I was able to capitalize as well with a substantial buy this morning at $345 CDN (1000+ shares).

The gain appears to be fading a bit, and wondering if has a chance to drop again, as the MSCI will officially re-balance on Nov. 30th.  Just trying to get an understanding when the MSCI mirror funds actually sell, as opposed to trading desks front-running the eventual sales over the next 2 weeks.

 

thanks again for this insite!

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