Fairfax Financial calls report by short seller Muddy Waters false and misleading

TORONTO — Fairfax Financial Holdings Ltd. is calling the allegations in a short sellers report on the company false and misleading.

After reviewing the 72-page report by Muddy Waters Research, Fairfax says it denies and refutes all of the allegations and insinuations made by the U.S.-based firm.

In a report last week, Muddy Waters, which said it was short Fairfax, alleged the company manipulated asset values. It said it believed a conservative adjustment-to-book value for the company should be 18 per cent lower than reported.

Short sellers make money when the price of a stock they have sold short falls.

Fairfax shares fell more than 10 per cent the day the Muddy Waters report was released, however, they recovered some of the decline the next day.

Chairman and CEO Prem Watsa said Fairfax is a strong and enduring company built over 38 years, committed to integrity, customer service, employee welfare and the communities it operates in.

This report by The Canadian Press was first published Feb. 12, 2024.

Companies in this story: (TSX:FFH)

The Canadian Press