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One Big Canadian Investor Dumps 90% of U.S. Long-Bond Holdings Ahead of Election

  • Fairfax cash and short-term investments now total $10 billion
  • “We wanted to take that risk out", says CEO Prem Watsa
Bloomberg business news

Watsa Dumps 90% of U.S. Long-Bond Holdings

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Fairfax Financial Holdings Ltd., the Canadian holding company run by value investor Prem Watsa, sold almost all of its long-dated U.S. Treasuries amid global uncertainty, including the outcome of the U.S. presidential election.

The company exited 90 percent of its U.S. long-term Treasuries on Thursday, increasing its cash and short-term investments to $10 billion from $1.1 billion at the end of September. That brings cash and short-term investments to comprise more than a third of the company’s portfolio, up from 19 percent at quarter-end, Watsa said on a conference call with analysts.