Fairfax Financial Holdings Q4 2025 13F Holdings and Activity Report

I. Institutional Overview

Analyzing the scale trend, the portfolio value of $2.08 billion indicates a stable yet selective deployment of capital. Fairfax Financial operates much like Berkshire Hathaway, using the "float" from its insurance operations to fund its investment activities. This structure allows Watsa to ignore the liquidity pressures that plague traditional mutual funds or hedge funds. He can afford to hold "dead money" for years if the underlying business logic remains sound. The current report shows a portfolio that is undergoing a strategic rebalancing—trimming winners that have reached or exceeded price targets (like Orla Mining) and doubling down on "distressed" or "unloved" assets that fit the value criteria (like Under Armour).

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

II. Sector Allocation Analysis

The top three sectors— Materials, Consumer Discretionary, and Energy —account for nearly 58.56% of the total portfolio. This level of concentration indicates a "macro-thematic" approach. The heavy weight in Materials (30.35%) suggests a long-term belief in the "super-cycle" of commodities or, at the very least, a hedge against monetary debasement. However, the fact that this weight was significantly higher in previous quarters (given the 44% reduction in Orla Mining) indicates that Watsa believes the "easy money" in the mining sector may have been made, leading to a tactical reallocation.

The most striking shift this quarter is the rise of Consumer Discretionary to 14.41% . This is largely driven by the massive addition to Under Armour (UAA). In a typical macro environment, increasing discretionary exposure suggests optimism about consumer spending. However, in Watsa’s case, this is likely a "valuation-driven" move rather than a "macro-bullish" move. He is buying these assets not because he thinks the economy is booming, but because he believes the stocks are priced for a disaster that won't happen. This "distressed value" approach is a hallmark of the Fairfax style.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

III. Top 10 Holdings Deep Dive

Orla Mining remains the largest position in the portfolio, but the 44% reduction (selling 25 million shares) is the most significant move of the quarter. This is a classic example of "harvesting a winner." Watsa first entered this position years ago, and with a reported PnL of 299.34% , he is now locking in substantial gains. Despite the sale, the remaining 20.33% weight indicates that ORLA is still a "conviction holding." Orla is a low-cost gold producer with high-quality assets in Mexico and Panama. The decision to trim likely stems from a desire to diversify into other "distressed" areas (like Under Armour) rather than a loss of faith in the company. However, the sheer size of the reduction suggests that Watsa believes the stock might be approaching a fair valuation or that the macro risks for gold miners in certain jurisdictions have increased. By selling 25 million shares at an estimated price of $13, Fairfax has generated roughly $325 million in liquidity , which was immediately redeployed.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

IV. Major Buys/Additions

The buying activity is heavily clustered in Consumer Discretionary (Retail and Beverages) . This reveals a clear "contrarian" trend. While the rest of the market might be chasing AI or high-growth software, Watsa is moving into the "unloved" corners of the mall and the liquor store. He is betting on the resilience of the consumer and the mean reversion of brand valuations .

Where did the money come from? The $325M+ recouped from the Orla Mining sale was the primary source of funding for the $223M Under Armour blitz . This is a classic "inventory reallocation." Watsa is taking profits from a "hard asset" (Gold Mining) that has already performed and moving it into a "soft asset" (Consumer Brand) that is currently in the gutter. This "Sell High, Buy Low" rotation is the essence of value investing.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

V. Major Sells and Exits

The quality of these exits is exceptionally high. Watsa is selling into strength (KKR, FNV, ORLA) and cutting losses or mistakes quickly (DLTR). This "portfolio slimming" has made the overall fund more focused. By exiting the "tail" positions (DLTR, KKR, FNV), he has reduced the number of stocks to 29, allowing him to focus more intensely on his core turnaround bets.

The total cash recouped from these sells is estimated at over $340 million . This capital has been almost entirely recycled into the $223M Under Armour position and the $45M UA position . This is a clear "Sector Rotation" from Financials/Mining into Consumer Turnarounds . It shows a manager who is willing to sell what is "working" to buy what is "broken" but cheap.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

VI. Investment Insights and Risk Warnings

The overarching theme of Fairfax Financial’s Q4 2025 report is "The Strategic Pivot from Harvesting Winners to Funding Turnarounds." Prem Watsa has executed a masterclass in capital reallocation, moving from the "certainty" of realized gains in mining and private equity to the "uncertainty" of a massive turnaround bet in the retail sector.

For the individual investor, Watsa’s moves offer two key lessons: 1. Don't be afraid to sell your winners. Even if you love a company (like ORLA), if it becomes too large a portion of your wealth, rebalancing is a sign of strength, not weakness. 2. Look for "unloved" brands with real assets. Under Armour still has a global brand, physical products, and a massive customer base. At the right price, even a "bad" business can be a "great" investment.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

Sources and limitations

This report uses public U.S. Securities and Exchange Commission Form 13F disclosures and structured data maintained by 13F Hub. A 13F filing is a quarter-end snapshot of reportable long positions, is normally published with a delay, and does not disclose every short position, cash balance, bond, derivative, or non-U.S. asset.

Narrative content is prepared from the same-period SEC disclosure and 13F Hub structured data, then checked before publication. This material is for research and education, not personalized investment advice.