Prem Watsa Increases Fairfax Financial Holdings' Focus on Undervalued Stocks

As part of Fairfax Financial Holdings' investment strategy under Prem Watsa, there were notable shifts observed across various sectors as of June 30, 2026. The filing indicates substantial increases in holdings for several companies.

• Fairfax significantly boosted its position in ORLA MINING LTD (ORLA), Basic Materials sector, increasing shares by an impressive 83.55% quarter-over-quarter to represent a hefty 21.55% allocation of the total portfolio value.
• Similarly, holdings in ELDORADO GOLD CORP (EGO) remained unchanged but still hold significant weight at 16.18%, while Kraft Heinz CO (KHC), Consumer Defensive sector saw an enormous increase of 171.56% with a new allocation percentage of 12.8.
• WENDEY'S CO (WEN) also showed strong buying interest, increasing its stake by 144.9%, though this position only accounts for 2.51% of the portfolio.

This quarter's activity highlights a clear pattern of strategic investment in specific areas:

• The Basic Materials sector saw significant inflows, with ORLA MINING LTD (ORLA) and ELDORADO GOLD CORP (EGO) both experiencing substantial share increases.
• Consumer Defensive companies like KRAFT HEINZ CO (KHC) also attracted considerable buying activity from Fairfax Financial Holdings.
• Additionally, the investor demonstrated interest in specific niche plays such as MOLSON COORS BEVERAGE CO (TAP), increasing its stake by 38.65%, and technology-focused KASPI KZ JSC (KSPI), which saw a 100% increase in shares.

Conversely, the portfolio also reflected some exits or reductions during this period:

• The position in MAGNACHIP SEMICONDUCTOR CORP (MX) was completely liquidated, reducing its allocation to 0.01% after a significant sell-off.
• GARRETT MOTION INC (GTX), Consumer Cyclical sector experienced a notable decrease of 44.28%, though it remains a very small holding at just 0.14%.

Overall, the portfolio's structure remained dominated by its core holdings in the Basic Materials and Consumer Defensive sectors:

• ORLA MINING LTD (ORLA) continues to be a major component with a significant increase this quarter.
• Kraft Heinz CO (KHC) also saw substantial growth, adding another layer to the portfolio's focus on value-oriented consumer staples.
• The Consumer Cyclical sector remains represented by holdings in UNDER ARMOUR INC (UAA) and WENDEY'S CO (WEN), though these allocations are relatively small at 10.98% and 2.51%, respectively.

For further details on Fairfax Financial Holdings' portfolio changes, you can explore the full report via this link. Detailed information about individual holdings like ORLA MINING LTD (ORLA) and ELDORADO GOLD CORP (EGO) is available at their respective pages: ORLA and EGO. Similarly, you can find information on Kraft Heinz CO (KHC) here: KHC.

The portfolio's holdings count increased slightly to 31 stocks this quarter. The top five holdings by value account for a substantial portion of the portfolio, representing approximately 72.14% allocation as per the filing.