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Fairfax Financial Holdings Limited Subordinate Voting Shares (FFH $2,436.42)
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Intact Financial Corporation (IFC $266.30)
Q: After a quiet year, P&C Insurance stocks are showing some buyers' interest, over past 2 months. We sold IFC and FFH positions, late last year. Do you think, the sector is showing some strength and it is a good time to re enter ?
If Yes, what would be your preferred route- Fairfax or Intact and why ?
In my personal view, Fairfax stock has shown remarkable resilience vis-a-vis Intact and Co is more diversified, with several interesting investments like Foran mining, Orla mining etc and potential for more similar investments. ( They sold their position in Eurobank ).
Thank You
If Yes, what would be your preferred route- Fairfax or Intact and why ?
In my personal view, Fairfax stock has shown remarkable resilience vis-a-vis Intact and Co is more diversified, with several interesting investments like Foran mining, Orla mining etc and potential for more similar investments. ( They sold their position in Eurobank ).
Thank You
5i Research Answer:
We think it is safe to re-enter. FFH, with its investment program (ala Berkshire) is a bit different. We think it is fine, but for a P&C investor we would side with IFC today for a pure play at a decent 14X valuation with a higher dividend. We agree with the comments in the question. FFH is more diversified and can offer upside, certainly. But we just consider it different. At times, its investments have not done as well and can be distracting to investors on occasion.