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  "documentTitle": "Fairfax Financial Holdings Ltd. (FFH)",
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  "authorName": "Muddy Waters Research",
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  "presentationDate": "2024-02-08 00:00:00",
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  "notes": "Includes a direct quote from Fairfax Financial Holdings Financial Statements Q2 2023.",
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      "text": "Subsequent to the closing of the transaction, during the second quarter of 2023 Mr. Watsa, to avoid potential future conflicts of interest, sold all of his 678,021 shares of Poseidon to Fairfax. Mr. Watsa owned 678,021 shares of Atlas representing less than 0.3% ownership as an investment that were replaced with shares of Poseidon on a one-for-one basis as a result of the tender offer as part of the consortium described above. Mr. Watsa sold the Poseidon shares to Fairfax at $15.50 per share, the same price he could have obtained under the tender offer and the price at which Fairfax's shares of Atlas were valued by the consortium which made the tender offer.",
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      "text": "Subsequent to the closing of the transaction, during the second quarter of 2023 Mr. Watsa, to avoid potential future conflicts of interest, sold all of his 678,021 shares of Poseidon to Fairfax.",
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      "text": "An additional area of concern in the Atlas transaction involves the Fairfax's CEO's trading. In February 2018—at approximately the same time, and plausibly before, Fairfax made a $1 billion investment in Atlas (then called Seaspan)—Prem Watsa purchased a 0.51% stake, or 678,021 shares of Atlas.",
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      "text": "When Seaspan (now Atlas) was taken private by a consortium (including Fairfax) on March 28th, 2023, Prem Watsa originally decided to roll the shares he owned personally into the acquisition. For reasons unknown to us (although we note that freight rates collapsed from Q1 to Q2 2023), Prem Watsa changed his mind and decided to sell his shares to Fairfax. The company stated that this was to \"avoid potential future conflicts of interest\". How providing liquidity ahead of minorities removes a conflict of interest—or why the Board allowed the CEO to invest alongside Fairfax in the first place if this had potential to be a conflict—is unclear to us.",
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      "text": "Subsequent to the closing of the transaction, during the second quarter of 2023 Mr. Watsa, to avoid potential future conflicts of interest, sold all of his 678,021 shares of Poseidon to Fairfax. Mr. Watsa owned 678,021 shares of Atlas representing less than 0.3% ownership as an investment that were replaced with shares of Poseidon on a one-for-one basis as a result of the tender offer as part of the consortium described above. Mr. Watsa sold the Poseidon shares to Fairfax at $15.50 per share, the same price he could have obtained under the tender offer and the price at which Fairfax's shares of Atlas were valued by the consortium which made the tender offer. — Fairfax Financial Holdings Financial Statements Q2 2023, Pg. 22.",
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      "text": "1 Fairfax Financial Holdings Annual Report 2019, Pg. 71. 2 Seaspan Corporation Schedule 13D Filed 2-14-2018. 3 Fairfax Financial Holdings Financial Statements Q2 2023, Pg. 22.",
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      "text": "Conflicts of Interest – Prem Watsa Cashes Out Before Fairfax in Atlas Take Private",
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