Prem Watsa

Prem Watsa’s latest 13F shows a portfolio that is, at its core, a concentrated bet on financials and a defensive hedge against market turbulence. His top holding remains Fairfax Financial, the insurer he controls, which is less an investment and more an operating base. Beyond that, the filing is dominated by a handful of high-conviction positions: BlackBerry, Stelco Holdings, and a large allocation to U.S. Treasuries. The treasury position is the standout. Watsa has historically used short-dated government bonds as a cash equivalent, but the current size suggests he is prioritizing capital preservation over deployment, even as equity valuations have pulled back. The recent moves are telling. He trimmed his stake in BlackBerry for the third consecutive quarter, reducing a position that was once his most publicized tech bet. He also added to his Stelco stake, a cyclical steel play that aligns with his value thesis: buying asset-heavy businesses when sentiment is low. What separates Watsa from his value peers is his willingness to hold large cash-like positions for years. Most value managers talk about patience; Watsa structures his book around it, accepting the drag of low yields to keep dry powder for dislocations. His divergence from peers is sharpest in what he avoids. There are no mega-cap tech names, no healthcare giants, and no index hedges via put options. Instead, the portfolio is a mix of idiosyncratic, often illiquid holdings that he can influence as an activist or board member. The result is a book that looks less like a traditional equity fund and more like a private holding company with public listings. For an investor who has built his reputation on buying when others flee, the current filing suggests he sees more risk than reward in the broad market, and he is content to wait.