Fairfax’s Watsa Lost $121 Million in a Day on BlackBerry, Stelco

Tuesday was a day to forget for Prem Watsa, often referred to as Canada’s Warren Buffett. His Fairfax Financial Holdings Ltd. lost more than C$160 million ($121 million) just in his top five listed Canadian investments, according to the latest filings compiled by Bloomberg. BlackBerry’s abysmal fiscal second-quarter earnings, which saw one of its staunchest bulls join the bear camp, was the prime offender, Bloomberg News reported. The stock fell 23% on Tuesday and extended declines Wednesday to the lowest in six years. To add to the pressure, Fairfax owns BlackBerry convertible debentures. The risk of default over the next year on the C$800 million of BlackBerry debt rose to 0.1% on Tuesday from a previous estimate of 0.021%, according to the Bloomberg Default Risk Model. Read more

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