Prem Watsa Portfolio Analysis: Top 10 Positions and Key Changes

Prem Watsa’s Fairfax Financial Holdings reported an equity portfolio of approximately ~$2.0 billion in the latest quarter, continuing to reflect a contrarian, value-driven approach focused on cyclical opportunities, distressed assets, and long-term mean reversion.

The portfolio is highly concentrated, with a substantial portion of capital allocated to a small group of high-conviction positions. Consistent with Watsa’s long-standing philosophy, Fairfax leans into out-of-favor sectors, commodity-linked businesses, and special situations where downside appears limited relative to upside.

The latest filing shows selective but meaningful repositioning, including a major reduction in its top holding alongside aggressive additions to select cyclical names. Compared to traditional deep-value managers, Fairfax demonstrates tactical flexibility, actively reallocating capital as macro and commodity cycles evolve.

Fairfax continues to emphasize resource exposure, industrial cyclicals, and turnaround situations, with relatively limited exposure to high-growth technology.

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Portfolio Snapshot

• Estimated Portfolio Value: ~$2.0B
• Top 10 Weight: ~86% (highly concentrated)
• Turnover: Moderate — active repositioning within core cyclical bets

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Top Holdings & Weights

Company	Ticker	Value	Portfolio %
Orla Mining	ORLA	~$424M	~20.3%
Occidental Petroleum	OXY	~$249M	~11.9%
CVS Health	CVS	~$215M	~10.3%
Under Armour (Class A)	UAA	~$209M	~10.0%
Cleveland-Cliffs	CLF	~$198M	~9.5%
BlackBerry	BB	~$132M	~6.4%
Kennedy-Wilson Holdings	KW	~$129M	~6.2%
Kraft Heinz	KHC	~$124M	~6.0%
ATS Corp	ATS	~$68M	~3.3%
Molson Coors	TAP	~$62M	~3.0%

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Key Takeaway

The portfolio reinforces Watsa’s preference for:

• Commodity and resource exposure (gold, energy, steel)
• Turnaround and restructuring stories
• Deep value equities trading below intrinsic value
• Cyclical businesses positioned for macro recovery

The portfolio is heavily tilted toward energy, materials, and industrials, with selective exposure to consumer and legacy technology names.

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Biggest Changes Last Quarter

Notable Adds

Under Armour (UAA & UA):
Large increase across share classes.
→ Signals conviction in a turnaround driven by restructuring and brand reset.

Molson Coors (TAP):
Position increased.
→ Reflects interest in stable cash flow and improving margins in beverages.

CVS Health (CVS):
Position maintained at a high weight.
→ Suggests confidence in healthcare vertical integration and cash generation.

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Notable Trims

Orla Mining (ORLA):
Significant reduction (~44% decrease).
→ Likely profit-taking after strong performance in gold equities.

BlackBerry (BB):
Slight trim.
→ Indicates ongoing but cautious conviction in turnaround progress.

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Full Exits Last Quarter

• Dollar Tree (DLTR): Fully exited
• Franco-Nevada (FNV): Fully exited
• KKR & Co (KKR): Fully exited

→ Suggests capital rotation away from prior winners and financials into higher-conviction cyclical ideas.

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Portfolio Characteristics

• Style: Deep value, contrarian, macro-aware
• Concentration: High (top-heavy in a few core ideas)
• Turnover: Moderate — opportunistic reallocations

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Summary

Fairfax Financial’s latest filing highlights Prem Watsa’s high-conviction, contrarian value strategy, with a strong emphasis on cyclical recovery plays and asset-heavy businesses.

The portfolio is notably concentrated, led by large positions in Orla Mining, Occidental Petroleum, and CVS Health, alongside significant bets on industrial and consumer turnarounds like Under Armour and Cleveland-Cliffs.

Recent activity shows active capital rotation, including trimming a major gold position while increasing exposure to select cyclicals and restructuring stories.

Overall, the portfolio reflects Watsa’s core principles: patience, contrarian positioning, and willingness to lean into volatility, with a clear bias toward macro-driven opportunities and undervalued hard assets.