Asif Lalani's questions to Fairfax Financial Holdings Ltd (FRFHF) leadership • Q1 2024
Question
Asif Lalani asked about Fairfax's capacity and willingness to reallocate capital from its fixed income portfolio into equities should a significant market dislocation present an attractive opportunity.
Answer
Peter Clarke, President and COO, affirmed that the company has significant flexibility. He described the fixed income portfolio as very liquid, comprised mainly of U.S. treasuries with a short average duration of about three years. He emphasized that the overall investment portfolio is defensively positioned, which gives Fairfax the ability to pivot and reallocate to equities if management chose to do so.