) is a cautious investor, whose vigilance has been heighted in
recent years by what he perceives as a mix of factors indicating an
economic storm up ahead. He has had extraordinary performance at
his insurance conglomerate Fairfax Financial (
), compounding book value per share at 21.3% since inception. His
return on his stock portfolio has lagged, however, as he hedges
against potential future market instability. According to his 2013
annual letter, threats he sees to the market include: high U.S.
total debt/GDP ratio with significant deleveraging remaining, weak
economic growth in the Western world, inflation, QE's lack of
impact on the real economy, real estate bubble in China and low
U.S. and junk bond yields.
In the first quarter, Watsa started three new positions, in Steel
Partner Holdings LP (
), Morgan Stanley Asia Pacific Fund Inc. (
) and Harvest Natural Resources Inc. (
Steel Partner Holdings LP (
Watsa purchased 30,000 shares of his new buy Steel Partner
Holdings, giving it just a minor 0.036% position in the portfolio.
The first quarter's average share price for Steel Partner was $17.
Steel Partners Holdings LP is a diversified holding company that
engages in multiple businesses through consolidated subsidiaries,
associated companies and other interests in various industries
including energy, defense, banking, food products, etc. Steel
Partner Holdings LP has a market cap of $446.2 million; its shares
were traded at around $16.04 with a P/E ratio of 30.0 and P/S ratio
Morgan Stanley Asia Pacific Fund Inc. (
Watsa purchased 24,500 shares of Morgan Stanley Asia Pacific Fund
in the first quarter, making up a scant 0.029% of his portfolio.
The share price averaged $16 in the first quarter.
Harvest Natural Resources Inc. (
Last, Watsa as his smallest purchased 100,000 shares of Harvest
Natural Resources, a 0.026% portfolio segment. The fourth quarter
average price was $4 per share.
Harvest Natural Resources Inc. was incorporated in 1989 under the
Delaware law. Harvest Natural Resources Inc. has a market cap of
$195.700 million; its shares were traded at around $4.65. Harvest
Natural Resources Inc. had an annual average earnings growth of
21.50% over the past five years.
See more of Prem Watsa (Trades, Portfolio)'s first quarter moves in
his stock portfolio here.
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