Prem Watsa’s Latest Stock Portfolio: Fairfax’s Biggest Buys and Sells

FAIRFAX FINANCIAL HOLDINGS LTD/CAN (Prem Watsa) reported an equity portfolio valued at approximately $1.94 billion in the latest reported quarter, reflecting Prem Watsa’s value-oriented investment philosophy and willingness to build concentrated positions in businesses trading below intrinsic value.

Consistent with Fairfax’s long-standing approach of investing in out-of-favor companies with strong underlying fundamentals, the portfolio remains relatively concentrated, with a significant weighting in a handful of core holdings. The latest filing shows selective portfolio activity, including a few meaningful additions and several complete exits.

The portfolio remains concentrated, with the top 10 holdings accounting for approximately 88.03% of total assets. Fairfax continues to maintain large positions in energy, financials, consumer staples, industrials, and select turnaround opportunities.

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Portfolio Snapshot

Total Portfolio Value: ~$1.94B

Top 10 Weight: 88.03%

Turnover: Moderate — selective additions and exits

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Top Holdings & Weights

Orla Mining (ORLA) — ~$501.6M (25.82%)

Under Armour Class A (UAA) — ~$253.7M (13.06%)

CVS Health (CVS) — ~$194.8M (10.03%)

Kennedy-Wilson Holdings (KW) — ~$144.3M (7.43%)

Under Armour Class C (UA) — ~$127.0M (6.53%)

Cleveland-Cliffs (CLF) — ~$125.7M (6.47%)

Kraft Heinz (KHC) — ~$118.4M (6.10%)

BlackBerry (BB) — ~$113.3M (5.83%)

ATS Corporation (ATS) — ~$69.4M (3.57%)

Molson Coors Beverage (TAP) — ~$62.0M (3.19%)

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Key Takeaways

Fairfax’s portfolio continues to reflect Watsa’s willingness to invest where market sentiment remains cautious. The largest position, Orla Mining, highlights the firm’s confidence in precious metals and mining assets, while sizable positions in Under Armour, Cleveland-Cliffs, and BlackBerry demonstrate Fairfax’s continued focus on turnaround and value situations.

The portfolio also maintains exposure to more established businesses through CVS Health, Kraft Heinz, Molson Coors, and Bank of Nova Scotia. These holdings provide a balance between deep-value opportunities and more stable cash-generating businesses.

Several positions remain relatively small compared to the core holdings, underscoring Fairfax’s preference for concentrating capital in its highest-conviction ideas.

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Biggest Changes Last Quarter

Under Armour Class C (UA)

Shares increased by +12.54M (+132.61%)

→ Fairfax significantly increased its Under Armour Class C position during the quarter, making it one of the largest additions in the portfolio. The move suggests growing confidence in the company’s restructuring efforts and potential earnings recovery.

Under Armour Class A (UAA)

Shares increased by +1.04M (+2.48%)

→ Fairfax also added modestly to its Class A shares, further increasing its overall exposure to Under Armour and reinforcing its conviction in the investment thesis.

Wendy’s (WEN)

NEW POSITION by +3.27M (+100.00%)

→ Fairfax established a sizable new position in Wendy’s during the quarter, creating a meaningful allocation to the quick-service restaurant operator.

Pfizer (PFE)

Shares increased by +100,000 (+11.22%)

→ The increase in Pfizer suggests Fairfax sees value in the pharmaceutical giant following recent market weakness and concerns surrounding post-pandemic earnings normalization.

Molson Coors (TAP)

Shares increased by +100,000 (+7.47%)

→ Fairfax modestly increased its Molson Coors position, indicating continued confidence in the brewer’s cash flow generation and defensive characteristics.

Kraft Heinz (KHC)

Shares increased by +149,200 (+2.91%)

→ The addition to Kraft Heinz was relatively small but consistent with Fairfax’s preference for established consumer brands trading at reasonable valuations.

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Full Exits Last Quarter Included

Occidental Petroleum (OXY)

→ Fairfax fully exited Occidental Petroleum during the quarter, closing a position that previously represented approximately 11.94% of portfolio assets. The sale was one of the most significant portfolio changes and likely provided capital for additions elsewhere in the portfolio.

Vanguard S&P 500 ETF (VOO)

→ Fairfax also exited its position in the Vanguard S&P 500 ETF, eliminating broad market exposure in favor of more targeted individual stock investments.

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Summary

Fairfax Financial Holdings’ latest filing continues to reflect Prem Watsa’s disciplined value-investing approach, with capital concentrated in a relatively small number of high-conviction positions.

The most notable activity during the quarter was the substantial increase in Under Armour, the new investment in Wendy’s, and the complete exit from Occidental Petroleum, which had previously been one of the portfolio’s larger holdings.

Outside of those moves, activity remained measured, with modest additions to existing positions such as Pfizer, Kraft Heinz, and Molson Coors.

Overall, the filing reinforces Fairfax’s long-standing strategy of seeking undervalued businesses where management believes the market is underestimating long-term intrinsic value.