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  "docId": "019dd923-622c-750b-8b97-92c6b164e5b0",
  "docSlug": "b0d582a40bc2",
  "documentTitle": "Fairfax Financial Holdings Ltd. (FFH)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Muddy Waters Research",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-02-08 00:00:00",
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  "pageNumber": 22,
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  "notes": "The slide uses specific Q3 2023 data points to highlight the discrepancy between carrying value ($18.26/share), fair value ($27/share), and market value ($8/share).",
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      "kind": "callout",
      "text": "By carrying EXCO Resources well above its market value, Fairfax overstates its own book value by ~$245 million as of Q3 2023.",
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      "text": "By carrying EXCO Resources well above its market value, Fairfax overstates its own book value by ~$245 million as of Q3 2023.\nEXCO is 44.4% owned by Fairfax, which began investing in EXCO in 2013, five years before its bankruptcy filing.\nEXCO is traded OTC (EXCE US), which Fairfax seemingly ignores when it values its EXCO stake, which as of Q3 2023, it carried at $18.26 / share vs. $8 market value.\nFairfax further misleads investors by giving EXCO a higher fair value than carrying value. Fairfax's fair value of EXCO as of Q3 2023 was ~3x market value ($27 / share fair value vs. $8 / share market value).\nThe discrepancy between EXCO's fair value and actual market value makes it appear as though Fairfax's aggregate investment carrying values are below its aggregate investment fair values, giving a false impression of conservatism in carrying values.\nFairfax has a long history with EXCO, throwing ~$450 million of good money after bad starting in 2013, calling into question the rigor of Fairfax's investment decision making process.",
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      "text": "book value: $245 million",
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      "kind": "source-note",
      "text": "1 Fairfax Financial Holdings Limited Interim Report Q3 2023, Pg. 22.\n2 Fairfax Financial Holdings Limited Interim Report Q3 2023, Pg. 22.\n3 Fairfax Financial Holdings Limited Interim Report Q3 2023, Pg. 22.",
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      "kind": "title",
      "text": "EXCO Resources: Fair Value 3x Market Value, Leading to Overstating Book Value by ~$245 Million",
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