Jeffrey Stacey of Stacey Muirhead Capital Management presented his investment thesis on Fairfax India Holdings (Canada: FIH.U) at Best Ideas 2022.
Fairfax India Holdings is an investment holding company with an objective of achieving long-term capital appreciation by investing in public and private equity securities and debt instruments in India and in Indian businesses.
Fairfax Financial owns 29.9% while OMERS owns 14.3% of the equity. Management and investment advisory services are provided by Fairfax Financial, which has a successful long-term operating record in India. Some of the largest investments made by Fairfax India include the Bangalore International Airport Limited, the IIFL group of companies, Sanmar Chemicals Group, and CSB Bank.
Since its inception in 2015, Fairfax India has compounded book value per share at 11.3% while the underlying share price has compounded at only 4.0% over the same period (both figures are as of the end of Q3 2021).
Fairfax India recently traded at a ~42% discount to the net mark-to-market value of the underlying public and private equity investments. Fairfax India has been buying back stock to take advantage of the discount, having purchased at least 5.5% shares outstanding in 2021.
Given the above-average long-term growth potential of India, a portfolio of public and private investments with solid economic prospects, a market price at a significant discount, and an active share repurchase program, Jeff believes that Fairfax India represents a compelling investment opportunity.
The full session is available exclusively to members of MOI Global.
Members, log in below to access the full session.
Not a member?
Thank you for your interest. Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:
About the instructor:
Jeffrey Stacey is the founder of Stacey Muirhead Capital Management Ltd. and he has over 35 years of investment industry experience. Jeff has an Honours Bachelor of Business Administration degree from Wilfrid Laurier University and is a Chartered Financial Analyst.
Jeff has been involved in many charitable and board activities throughout his career. He has served on several investment committees including for two Canadian universities. In addition, he has served on the advisory boards for two university student managed investment funds.
Jeff is married and has two children. Personal interests include hiking, fitness, reading, travelling, and playing drums.
About The Author: MOI Global Editorial Team
The MOI Global Editorial Team, led by John Mihaljevic, CFA, includes community builders, event organizers, writers, editors, research associates, security analysts, and fanatical member support advocates. Our sole purpose is to serve the members of MOI Global as well as we possibly can in order to help them learn, invest intelligently, and build lifelong friendships with like-minded people.
Who is MOI Global? In recent years, The Manual of Ideas has expanded to become more than simply “the very best investing newsletter on the planet” (Mohnish Pabrai). We are now a thriving global community of intelligent investors, connected through great ideas, thought-provoking interviews, online conferences, live member events, and much more.
Members of MOI Global enjoy complimentary access to a growing array of resources and content related to the art of intelligent investing. Members also enjoy preferential access to selected offline events as well as exclusive access to other events hosted by MOI Global, including the Zurich Project Summit, the Latticework Conference, and Ideaweek.
More posts by MOI Global Editorial Team