Prem Watsa's Fairfax couldn’t dodge Q2 market turmoil

If it’s any consolation to Canadians who have reluctantly checked their investment statements as equity markets went into a tailspin this year, even the country’s most famous investor — who is often compared to Warren Buffett — couldn’t dodge the turmoil.
 
Prem Watsa’s Fairfax Financial Holdings Ltd. swung to a net loss of US$881.4 million in the second quarter as the conglomerate booked a US$1.5-billion net loss on its investments that masked underlying strength in its sprawling insurance operations.
 
That was the result of US$269 million in realized investing gains being overwhelmed by US$1.8 billion in unrealized losses. And of that, US$1 billion stemmed from paper losses on Fairfax’s equity exposure.
 
“Net losses on investments of US$1,547.9 million during the quarter were principally comprised of mark-to-market losses on common stocks of US$873.8 million reflecting the 16 per cent drop in the S&P 500 in the quarter and mark-to-market losses on bonds of US$413.4 million due to continued rising interest rates,” said Watsa, the founder, chairman, and chief executive of Fairfax, in a release.