Fairfax Financial Holdings Ltd (FRFHF) Posted Impressive Fundamental Performance Despite a Modest Share Pullback

Alphyn Capital Management, an investment management firm, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Master Account of the fund returned 3.0% net in the third quarter compared to 8.1% for the S&P 500 Index. As of the third quarter of 2025, the top ten holdings accounted for approximately 68% of the portfolio, and approximately 17% of the portfolio was held in cash. The market narrative was dominated by AI advancements, credit cycles, and geopolitical uncertainty in the quarter. The firm focuses on compound value through disciplined reinvestment and operational excellence. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Alphyn Capital Management highlighted stocks such as Fairfax Financial Holdings Limited (OTC:FRFHF). Fairfax Financial Holdings Limited (OTC:FRFHF) is an insurance company that offers property and casualty insurance and reinsurance, and investment management services. The one-month return of Fairfax Financial Holdings Limited (OTC:FRFHF) was -4.36%, and its shares gained 32.30% of their value over the last 52 weeks. On October 27, 2025, Fairfax Financial Holdings Limited (OTC:FRFHF) stock closed at $1,662.03 per share, with a market capitalization of $36.962 billion.

Alphyn Capital Management stated the following regarding Fairfax Financial Holdings Limited (OTC:FRFHF) in its third quarter 2025 investor letter:

"Fairfax Financial Holdings Limited (OTC:FRFHF): Fairfax’s fundamental performance remains impressive, despite the modest share price pullback in Q3, a natural consolidation following its significant multi-year run. The Q2 results, reported in July, underscored this strength, driving book value per share up 10.8% year-to-date to $1,158, supported by a disciplined 93.3% combined ratio and strong investment results.

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Fairfax Financial Holdings Limited (OTC:FRFHF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 1 hedge fund portfolios held Fairfax Financial Holdings Limited (OTC:FRFHF) at the end of the second quarter, up from 1 in the previous quarter. While we acknowledge the potential of Fairfax Financial Holdings Limited (OTC:FRFHF) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In addition, please check out our hedge fund investor letters Q3 2025 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.

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