Ayalon (4D) Global Stocks, managed by Ayalon Trust Funds Ltd. on Fairfax Financial Holdings Limited
Thesis
Fairfax is presented as a core insurance compounder benefiting from both underwriting profits and the investment of insurance float. The letter highlights that Fairfax has compounded book value at close to 18 percent for roughly three decades, while its stock has delivered a similar long-term annual return. Its investment portfolio has grown to about 66 billion dollars while the insurance operations have retained strong profitability. The manager believes this combination of underwriting discipline and investment capability remains attractive for long-term compounding.
“which has compounded book value at an almost 18% rate for the past 30 years”