Fairfax Financial Holdings Q1 2026 13F Holdings and Activity Report

I. Institutional Overview

Prem Watsa, the Chairman and CEO of Fairfax Financial Holdings, has long been regarded as the "Warren Buffett of Canada." This moniker is not merely a tribute to his success but a reflection of his disciplined, value-oriented investment philosophy that prioritizes long-term capital appreciation over short-term market fluctuations. As of the first quarter of 2026, the institutional holdings of Fairfax Financial Holdings present a fascinating portrait of a sophisticated investor navigating a complex global economic landscape. With a total portfolio market value of approximately $1.94 billion and a concentrated selection of 29 holdings , the institution continues to demonstrate a high-conviction approach that favors deep-value opportunities and contrarian bets.

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II. Sector Allocation Analysis

The most significant rotation this quarter is the dramatic retreat from the Energy sector. Previously a cornerstone of the portfolio, the Energy weight has plummeted to just 2.18% following the total liquidation of Occidental Petroleum. This move suggests a profound shift in macro judgment. It appears the institution believes the energy cycle has reached a peak or that the risk-reward profile of traditional oil and gas companies has become less attractive compared to other opportunities. This capital has largely been recycled into the Consumer Discretionary and Consumer Staples sectors.

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III. Top 10 Holdings Deep Dive

Orla Mining is the undisputed cornerstone of the Fairfax portfolio, representing a staggering 25.82% of total assets. This is a classic "conviction holding." Despite no change in the number of shares held this quarter, the position's weight increased significantly from 20.33% to 25.82%. This indicates that the stock price of Orla Mining outperformed the rest of the portfolio, and Fairfax was content to let its winner run. Orla Mining is a gold producer with a focus on low-cost, high-margin operations in the Americas. Watsa’s commitment to this position, which he has held since late 2022, suggests a deep belief in the company’s asset quality and the long-term prospects for gold. By making ORLA such a dominant part of the portfolio, Fairfax is essentially making a leveraged bet on the company’s ability to execute its expansion plans and the broader macro tailwinds for precious metals.

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IV. Major Buys/Additions

The total estimated buy scale this quarter is approximately $115 million . Interestingly, this is significantly less than the cash recouped from the exit of Occidental Petroleum (approximately $248 million). This suggests that Fairfax is currently in a "net harvesting" mode—they are taking large profits from energy and selectively reinvesting only a portion of that capital into new ideas, while likely increasing their cash reserves or paying down institutional debt. This "inventory reallocation" shows a high degree of discipline; they are not forcing capital into the market just to stay fully invested.

Fairfax’s timing appears to be contrarian. They are buying into the consumer sector at a time when many investors are worried about the impact of persistent inflation on household budgets. By doing so, they are betting that the market's pessimism is overdone and that these established brands have the resilience to weather the storm. This is the essence of the Prem Watsa approach: buying when others are fearful, especially in sectors that are essential to daily life.

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V. Major Sells and Exits

The exit from OXY should be viewed as a warning signal for the energy sector. When a disciplined value investor like Watsa exits a major energy position entirely, it suggests that the "easy money" in that sector has been made. It points to a perception of peaking cycles or overvaluation in traditional oil and gas. Similarly, the exit from the S&P 500 ETF suggests a cautious view of the broad market's valuation, favoring specific "pockets of value" over the general index.

Fairfax Financial Holdings is currently in a state of "Strategic Contraction." They are narrowing their focus, exiting broad market and cyclical energy bets, and concentrating their capital into a few high-conviction turnaround stories and defensive staples. This move increases the portfolio's idiosyncratic risk (the risk that their specific picks are wrong) but decreases its systemic risk (the risk of being dragged down by a broad market or energy sector correction). It is a bold, active stance that reinforces Prem Watsa's reputation as a true contrarian.

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VI. Investment Insights and Risk Warnings

The logic chain is clear and disciplined: 1. Harvesting the Winners : Recognizing that the energy bull run (represented by Occidental Petroleum) has matured, the institution has harvested nearly a quarter-billion dollars in capital. 2. Rejecting the Index : By exiting the S&P 500 ETF, they have signaled a lack of confidence in broad market "beta" at current valuations, choosing instead to rely on their own analytical edge. 3. Aggressive Turnaround Bets : They have recycled a portion of that capital into "distressed" consumer brands like Under Armour, where they believe the market has over-discounted the potential for an operational recovery. 4. Defensive Layering : They have bolstered the portfolio’s resilience by adding to high-cash-flow, "boring" businesses like Wendy's, Kraft Heinz, and Molson Coors.

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.