Feb 19 (Reuters) - Fairfax Financial Holdings Ltd FFH.TO :
* Head watsa says co is maintaining its defensive equity hedges and deflation
protection
* Says remaisn concerned about the financial markets and the economic outlook
in this global deflationary environment
* Rpt-fairfax says remains concerned about the financial markets and the
economic outlook in this global deflationary environment
* Says has boosted its equity hedge ratio to 100 percent
* Says continues to be concerned about prospects of financial markets and
economies of North America and western Europe
* Says concerns accentuated by the potential weakness in China
* Fairfax's watsa says remains optimistic that BlackBerry BB.TO investment
will do well over time