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Another Bear Throws In The Towel: “Canada’s Most Famous Investor” Closes Bearish Hedges After Huge Loss

Friday, February 17, 2017 21:12
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(Before It's News)

zerohedge.com / by Tyler Durden / Feb 17, 2017 3:18 PM

Another bear throws in the towel.

Prem Watsa, the CEO of Fairfax Financial, and largely recognized as Canada’s most famous investor, is dropping his bearish stance on the markets. Watsa announced that he is covering his firm’s equity hedges after suffering a $1.1 billion net loss on its investments in Q4, and $1.2 billion for all of 2016.

The reason is a familiar one: Donald Trump.

“[Full-year] net losses on investments of $1,204 million were primarily as a result of fundamental changes in the U.S. in the fourth quarter that may bolster economic growth and business development in the future. Consequently, we removed all our defensive equity index hedges and reduced the duration of our bond portfolios to approximately one year,” Watsa said in a press release late Thursday.

Net losses on investments of $1,204 million were primarily as a result of fundamental changes in the U.S. in the fourth quarter that may bolster economic growth and business development in the future. Consequently, we removed all our defensive equity index hedges and reduced the duration of our bond portfolios to approximately one year. Our investment actions resulted in our having cash and short term investments in excess of $10 billion at year-end,” said Prem Watsa, Chairman and Cfhief Executive Officer of Fairfax. “In the fourth quarter we announced our agreement to purchase Allied World for $4.9 billion, a transformative acquisition for Fairfax. We continue to be soundly financed, with year-end cash and marketable securities in the holding company approaching $1.4 billion.

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The post Another Bear Throws In The Towel: “Canada’s Most Famous Investor” Closes Bearish Hedges After Huge Loss appeared first on Silver For The People.



Source: http://silveristhenew.com/2017/02/17/another-bear-throws-in-the-towel-canadas-most-famous-investor-closes-bearish-hedges-after-huge-loss/

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  • Hang all drunkdrivers

    Does this mean the top is in?

  • Mr. R. West

    Top not in … Trump admin. represents sea-change in terms of less taxes and regulations

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