Alphyn Capital Management, an investment management firm, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The Master Account of the fund returned -2.7% net in the second quarter compared to 4.3% for the S&P500 Index. As of June 30, 2024, the top ten holdings accounted for approximately 66% of the portfolio, and approximately 16% of the portfolio was held in cash. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Alphyn Capital Management highlighted stocks like Fairfax Financial Holdings Limited (OTC:FRFHF) in the second quarter 2024 investor letter. Fairfax Financial Holdings Limited (OTC:FRFHF) provides property and casualty insurance and reinsurance, and investment management services. The one-month return of Fairfax Financial Holdings Limited (OTC:FRFHF) was 4.33%, and its shares gained 59.48% of their value over the last 52 weeks. On July 11, 2024, Fairfax Financial Holdings Limited (OTC:FRFHF) stock closed at $1,153.27 per share with a market capitalization of $26.982 billion.
Alphyn Capital Management stated the following regarding Fairfax Financial Holdings Limited (OTC:FRFHF) in its Q2 2024 investor letter:
“Fairfax Financial Holdings Limited (OTC:FRFHF) continued its track record of consistent performance this past quarter. It acquired the rest of Gulf insurance, which is now consolidated on its books, which contributed to a healthy 11.8% year-over-year growth in net written premiums (excluding Gulf, the increase was still a solid 5.3%). The company maintained a strong combined ratio of 93.6%, though I note this metric might be impacted going forward as we enter hurricane season. Interest and dividend income exceeded management’s estimates, reaching nearly $600 million for the quarter and putting the company well on track to achieve its $2 billion target for the year. Fairfax has extended bond duration and increased its allocation to corporate bonds (approximately 15% of total bond investments) to get more yield. Eurobank and Poseidon provided the bulk of dividends from associates. The company’s commitment to shareholder value remained evident with $260 million deployed in share buybacks.”
A team of actuaries and engineers at a computer looking at the data and finding the best reinsurance solution for a client.
Fairfax Financial Holdings Limited (OTC:FRFHF) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 1 hedge fund portfolios held Fairfax Financial Holdings Limited (OTC:FRFHF) at the end of the first quarter which was 0 in the previous quarter. While we acknowledge the potential of Fairfax Financial Holdings Limited (OTC:FRFHF) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Fairfax Financial Holdings Limited (OTC:FRFHF) was a strong performer of Alphyn Capital Management in Q1 2024. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.