Prem Watsa’s Fairfax Financial Holdings Limited purchased additional 2.5 million shares of Imvescor Restaurant Group Inc. (TSE:IRG) at $0.85 per share. The Toronto based financial holding company, managed by Prem Watsa, has outstanding common shares holdings in Imvescor of approximately 19.5 percent, or more than 8.1 million shares.
Fairfax Financial Holdings Limited (PINK:FRFHF) (TSE:FFH) stake in Imvescor would be approximately 42.1 percent, or more than 24.5 million shares, assuming full exercise of the common share purchase warrants of Imvescor and no other warrants exercised.
According to Fairfax, the additional shares were acquired for investment purposes through a private agreement. The firm also stated that it might acquire additional securities from time to time in accordance with government regulations.
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Fairfax Financial Holdings Limited (PINK:FRFHF) (TSE:FFH) purchased additional 2.5 million shares of Imvescor Restaurant Group Inc. (TSE:IRG) at $0.85 per share. Imvescor is an operator of franchised and corporate restaurants based in Moncton, New Brunswick. Its brands include Pizza Delight, Mikes, Scores, and Baton Rouge.
Last month, Fairfax Financial Holdings Limited (PINK:FRFHF) (TSE:FFH) also increased its stake in Resolute Forest Products (NYSE:RFP) by 2.81 percent. The holding company now owns approximately 19 million shares, or a 10 percent stake of Resolute.
Fairfax posted $34.6 million net earnings during the third quarter of 2012. Its net earnings declined from $973.9 million during the same period last year. Fairfax book value dropped from $364.55 per share in December 2011, to $360.49 as of September 30, 2012.
Prem Watsa, chairman and chief executive officer of Fairfax Financial Holdings Limited (PINK:FRFHF) (TSE:FFH), explained that the hedge fund made a small investment loss during the third quarter, due to unrealized investment losses related to defensive hedging strategy. He emphasized the firm’s underwriting results continued to improve on increased premiums.
In addition, he said, “We finished the quarter with cash and marketable securities at the holding company of approximately $1 billion. We continue to maintain our equity hedges and have cash of approximately 33% ($8.1 billion) in our investment portfolios, as we are not being adequately paid to take risks with markets at current levels.”
As of October 26, 2012, Fairfax Financial Holdings Limited (PINK:FRFHF) (TSE:FFH) has 46 stocks under its portfolio, with approximately $1.9 billion market value.