The Toronto-based company said it had a net loss
of $5.5 million, or a loss of 98 cents a share, in the fourth
quarter. That compared with a profit of $406.4 million, or
$18.82 a share, a year ago.
Fairfax, which has hedged its stock portfolio since 2010, lost a
net $329.1 million on investments as losses on the equity hedges
more than offset gains on equity holdings.
Fairfax Chief Executive Watsa said in a statement that the stock
portfolio continues to be fully hedged, and that he expected
unrealized losses to reverse in the future.
Since taking over the company in 1985, Watsa has built a
reputation as a shrewd investor with moves such as betting
against the U.S. housing market and then reaping huge profits
when the market collapsed five years ago.
The company's latest big bet has been on hard-hit smartphone
market BlackBerry Ltd. Fairfax is the top shareholder in the
(Reporting by Cameron French;
editing by Cynthia Osterman)
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