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  "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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  "notes": "The slide uses a quote from a 2021 Fairfax Annual Report to support the claim of an off-balance sheet guarantee.",
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      "kind": "callout",
      "text": "Fairfax effectively repo'ed these seven investments to remove the losses from its income statement, effectively giving the European runoff business away for free.",
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      "text": "Concurrent with the March 2020 closing of the joint venture with OMERS, Fairfax stuffed seven associates and subsidiaries into RiverStone. (We discuss infra how stuffing them into RiverStone enabled Fairfax to avoid booking losses on them in 2020.) When CVC bought RiverStone, Fairfax issued a guarantee of the minimum value of these associates in RiverStone in the form of AVLNs. The AVLNs provide that Fairfax will (quoting):",
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      "kind": "quote",
      "text": "guarantee the then approximately $1.3 billion value of the securities to CVC and certain affiliates thereof until such time the securities are purchased by or sold at the direction of Hamblin Watsa, prior to the end of 2022. The company, through Hamblin Watsa, continues to manage and have direction over these securities, including their voting rights.",
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      "kind": "source-note",
      "text": "1 Fairfax Annual Report, 2021, Pp. 97-98.",
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      "kind": "title",
      "text": "Fairfax Subsidized CVC's Overpayment Through Off-Balance Sheet Debt",
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