FAIRFAX INDIA HOLDINGS

FAIRFAX + INDIA = OUTPERFORMANCE




Fairfax Financial Holdings has created a holding company called Fairfax India Holdings. FIH.U which debuted on January 30 2015 at $10 per share (Toronto Stock Exchange)

Prem Watsa a Canadian who is originally from India and in my opinion one of the greatest investors of our time has raised over a billion dollars US for this venture.

Fairfax Financial holds an approximate 28.5% equity interest in Fairfax India and approximately 95.1% of the voting rights in Fairfax India

The following are quotes describing objectives and the portfolio of Fairfax India from press releases and other sources.

"Fairfax India is an investment holding company whose investment objective is to achieve long-term capital appreciation, while preserving capital, by investing in public and private equity securities and debt instruments in India and Indian businesses or other businesses with customers, suppliers or business primarily conducted in, or dependent on, India ("Indian Investments"). Generally, subject to compliance with applicable law, Indian Investments will be made with a view to acquiring control or significant influence positions"

"The Portfolio

The Company will invest in businesses that are expected to benefit from India’s current pro-business political environment, its growing middle class and its demographic trends that are expected to underpin strong growth for several years. 

Sectors of the Indian economy that the Company believes will benefit most from such trends include infrastructure, the consumer services and retail sectors and the export sector. The Company, however, will not be limited to investing solely in these sectors and intends to invest in other sectors as opportunities arise.

The Company will utilize, and expects to benefit significantly from, the experience and expertise of Fairfax, the Portfolio Advisor, Fairbridge and their extensive affiliate network in India, to source, evaluate and successfully invest in Indian Investments.

The Company will employ a conservative, fundamental value based approach to identifying and investing in high quality Indian businesses, including both public and private businesses, as well as infrastructure investments. 

The Company’s strategy is designed to compound book value per share over the long term. The Company will seek attractive risk adjusted returns, but will seek at all times to emphasize downside protection and to minimize the loss of capital. 

The Company anticipates that its portfolio will be concentrated, provided that the Net Proceeds of the Offerings will be invested in at least six different Indian Investments, such that no single investment is expected to have an overly undue impact on the performance of the Company. 

The Company anticipates, subject to market conditions and the availability of attractive investment opportunities, that a majority of the Indian Investments, by value, will be in publicly-listed securities.

The Company will use the Net Proceeds of the Offerings, in the aggregate amount of approximately US$963,000,000, to invest, directly or indirectly, in Indian Investments. 

The Company anticipates that substantially all of the Net Proceeds of the Offerings will be invested in Indian Investments within 3 years from the Closing Date. 

Pending such investments, the Company will invest at least 90% of the Net Proceeds of the Offerings exclusively in Permitted Investments, and the remainder will be used for general corporate and working capital purposes.

 "We believe India will be transformed by the business-friendly government of Prime Minister Modi - and Fairfax India, with our resources and expertise in India developed over the last 15 years, will be well positioned to make excellent significant long-term investments in businesses with experienced and ethical management teams."

In the last quote Fairfax Financial alludes to their 15 years of experience in India. For example Fairfax financial owns Fairbridge Capital a wholly owned subsidiary that invests and advises Fairfax on Indian acquisitions 


74.77% THOMAS COOK INDIA 

26 per cent stake in ICICI Lombard General Insurance Co.

49% stake in MFXchange Holdings

74 per cent stake in human resources staffing firm Ikya Human Capital Solutions   Now known as Quess Corp

54.87 per cent. in Sterling Holiday Resorts

Close to 15% of Nation's Trust Bank   (Sri Lanka)

Aramark India Pvt LTD

THIS IS WHAT FAIRFAX FINANCIAL THROUGH Fairbridge Capital AND SUBSIDIARIES HAVE ACCOMPLISHED SO FAR, NOW IMAGINE WHAT FAIRFAX INDIA HOLDINGS CAN ACCOMPLISH WITH ROUGHLY 1 BILLION USD TO INVEST IN A PRO BUSINESS, MODI ENVIRONMENT WITH YEARLY GDP GROWING AT 8% AND HIGHER over the next decade?

Please note I've taken a substantial position and as always I do this for my own personal enjoyment and frustration and is NOT to be taken as Financial advice.