The portfolio of Fairfax Financial Holdings Ltd (OTCMKTS:FRFHF) (TSE:FFH), the insurance holding company controlled by Prem Watsa, showed that its equity investments were worth $1,595,885,000 for the third quarter that ended September 30, 2012 based on its 13F filing with the Securities and Exchange Commission (SEC).
Prem Watsa’s largest positions
During the quarter the largest stockholdings of Fairfax was BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB). It owns 51,854,700 shares of the Canadian smartphone manufacturer representing 25.76% of its portfolio. Most recently, BlackBerry received a $1 billion investment from its shareholders including Fairfax Financial. The insurance holding company purchased $250 million worth of convertible debentures. The Canadian smartphone manufacturer appointed John Chen as new executive chairman and CEO, while Watsa returned as lead director and chair of the compensation, nomination and governance committee of the board.
Fairfax Financial’s second-largest position is Resolute Forest Products Inc (NYSE:RFP) representing 25.73% of its portfolio. The insurance holding company owns 29,044,012 shares.
Prescience Partners returned 6.75% for the second quarter, underperforming the S&P 500's 8.55% return but coming out ahead of the Barclay Equity Long/ Short Index's 2.62% return. However, for the first six months of the year, Prescience is up 30.66%, doubling the S&P's 15.25% return and smashing the Barclay Equity Long/ Short Index's 9.27% return. Read More
Its third-largest position is Johnson & Johnson (NYSE:JNJ), which accounts for 15.98% of its portfolio. Fairfax Financial reduced its stake in the company by 2,974,059 shares to 2,941,741 shares. Its fourth and fifth largest positions were SandRidge Energy Inc. (NYSE:SD)’s 32,463,200 shares and Overstock.com, Inc. (NASDAQ:OSTK)’s 3,184,677 shares representing 11.92% and 5.92% of its portfolio.
Prem Watsa’s new acquisitions
During the quarter, Fairfax Financial purchased 5,000 shares of BP plc (NYSE:BP) (LON:BP), 33, 133 shares of K12 Inc. (NYSE:LRN), 21,000 shares of rue21, inc. (NASDAQ:RUE), 16,500 shares of Spreadtrum Communications, Inc (NASDAQ:SPRD), 4500 shares of Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX), and 750 shares of NewMarket Corporation (NYSE:NEU).
Prem Watsa’s reduced positions
Aside from reducing its stake from Johnson & Johnson (NYSE:JNJ), Fairfax Financial also cut its stockholdings in Dell Inc. (NASDAQ:DELL) by 8,456,589 shares to 520,000 shares, and SLM Corp (NASDAQ:SLM) by 2,879,279 shares to 15,000 shares.
Fairfax significantly reduced its position in Wells Fargo & Co (NYSE:WFC) by 1,2454,363 shares to 69,300 shares, and U.S. Bancorp (NYSE:USB) by 2,879,279 shares to 30,000 shares.
Prem Watsa’s added positions
Fairfax Financial bought an additional 62,500 shares of Cooper Tire & Rubber Co (NYSE:CTB) bringing its stake to 69,500 shares. As mentioned above, the insurance holding company increased its stake in Resolute Forest Products Inc (NYSE:RFP) by 86,685 shares.