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  "documentTitle": "Fairfax Financial Holdings Ltd. (FFH)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Muddy Waters Research",
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  "presentationDate": "2024-02-08 00:00:00",
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  "notes": "The slide details a specific accounting and market manipulation thesis involving the timing of valuation gains and the use of derivatives.",
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      "text": "We view Fairfax's behavior during this time as that of a stock promoter running a \"pump and dump\" with respect to Digit.",
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      "text": "book value: $1.1 billion",
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      "text": "Since 2021, the valuations for \"InsureTech\" stocks and Indian unicorns have collapsed... From S&P Capital IQ's comp valuations, we see Digit as generously being valued at ~$1.5 billion presently. We therefore adjust Fairfax's book value downward by -$1.1 billion.",
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      "text": "We feel it is incontrovertible that Digit is worth far less today than where Fairfax ultimately marked it in 2021, which is why we adjust Fairfax's book value down by $1.1 billion, as of December 2022, for Digit.",
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      "text": "The first improper, in our opinion, manipulation of Digit's carrying value occurred in Q1 2021. Digit agreed to raise money at a valuation of $1.9 billion... Fairfax instead took gains gradually over three quarters in 2021: $425 million in Q2, $397 million in Q3, $668.3 million in Q4.",
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      "kind": "paragraph",
      "text": "By late 2020, Fairfax seems to have been panicking. We believe that Fairfax had hatched a plan to take highly aggressive fair value gains throughout 2021 on its investment in Indian insurer Go Digit General Insurance Ltd. (\"Digit\").",
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      "text": "TRSes & Digit — Overview",
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