Is Fairfax Financial (FRFHF) a Great Long-Term Investment?

Tidefall Capital LP, an asset management firm, published its fourth-quarter 2021 investor letter – a copy of which can be seen here. An increase of 21.8% was delivered by the fund’s institutional shares for the fourth quarter of 2021, outperforming the S&P 500 Index which gained 11.0%, and the TSX Index which increased 6.5% for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Tidefall Capital, in its Q4 2021 investor letter, mentioned Fairfax Financial Holdings Limited (NYSE:FRFHF) and discussed its stance on the firm. Founded in 1951, Fairfax Financial Holdings Limited (NYSE:FRFHF) is a Toronto, Canada-based insurance company with an $11.7 billion market capitalization, and is currently spearheaded by its CEO, Prem Watsa. Fairfax Financial Holdings Limited (NYSE:FRFHF) delivered a -1.93% return since the beginning of the year, while its 12-month returns are up by 14.91%. The stock closed at $482.61 per share on March 16, 2022.

Here is what Tidefall Capital has to say about Fairfax Financial Holdings Limited (NYSE:FRFHF) in its Q4 2021 investor letter:

“In our previous letter, we highlighted Fairfax Financial as potentially being underappreciated by the market. Fairfax management seemed to agree and completed a substantial issuer bid for 7% of the outstanding shares (this is in addition to the existing 8% swap position). However, there is another Fairfax security that we believe has favorable long-term prospects, yet trades at a significant discount to its Net Asset Value (NAV)…” (Click here to see the full text)

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Our calculations show that Fairfax Financial Holdings Limited (NYSE:FRFHF) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Fairfax Financial Holdings Limited (NYSE:FRFHF) delivered a 6.14% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on Fairfax Financial Holdings Limited (NYSE:FRFHF) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.