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Feb 18 (Reuters) - Fairfax Holdings FFH.TO reported a
lower-than-expected quarterly profit, hurt by higher losses on
its investments.
Net investment losses increased to $200.1 million in the
fourth quarter from $172.6 million a year earlier.
The company, led by well-known contrarian investor Prem
Watsa, maintained its defensive equity hedges on concerns about
the global economic outlook.
Watsa, a devotee of the value investing style favored by
Warren Buffett, made billions for Fairfax by correctly calling
the 2008 financial crisis.
At the end of the quarter ended Dec. 31, equity hedges
accounted for 88.1 percent of its equity holdings, the company
said. It has since added about $938 million to its short
positions in equity and equity index total return swaps.
Fairfax's net income rose to $133.1 million, or $4.10 per
share, in the quarter, from $23.7 million, or 49 cents per
share, a year earlier.
Analysts on average had expected earnings of $5.49 per
share, according to Thomson Reuters I/B/E/S.
Net premiums written at rose 25.7 percent to $1.91 billion.
Up to Thursday's close of C$770.50, shares of the company
had risen 17.3 percent in the current year, outperforming a
marginal fall in the Toronto Stock Exchange .GSPTSE .