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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Graham Osborn who wrote (58518)	11/19/2016 8:55:24 PM
From: Spekulatius	Respond to of 78954

Pratsa did sell a lot of Fairfax bond holdings and also took hedges of prior to the election. This finally was a good call. While Fairfax book value has no grown that much, the actual insurance business has improved remarkably and runs now around a 90% combined ratio and this with probably conservative reserving. This is pretty good, but has been masked by bad macro call during the last few years. I do think, that the bleeding from the poor investment and the hedges will eventually stop and the strength of the insurance business will become more apparent. Even more upside is possible, if they get some macro calls right, as they have done in the past.