Q: Fairfax's share price broke the $1000 mark today. Seems to be due to some announcements made in the last couple of days. Can you explain what FFH has done and whether you like it?
5i Research Answer:
FFH has bought about $2B in loans from PacWest, with a yield at 8.6%, which the company has locked in. It shows the type of deal a capital-rich buyer can make buying from a motivated seller. We think it is a good deal and will certainly add to earnings. FFH is the type of company that can take advantage of distressed assets/sellers, and we think the stock is attractive for patient, long term value investors.