Shares of Fairfax Financial fell after a report from short seller Muddy Waters Research

TORONTO – Fairfax Financial Holdings Ltd. shares fell more than 10 percent on Thursday after claims that a short seller had manipulated the value of the company's assets.

A conservative revision to the company's book value should be 18 percent lower than reported in a report by Muddy Waters Research, which Fairfax said was brief.

Fairfax said it disagreed with the allegations and insinuations in the report.

The Company has assured shareholders that its financial statements and reporting comply with all applicable accounting principles.

Short sellers make money when the price of the stock they shorted goes down.

Fairfax shares were down $164.40, or about 12 percent, at $1,240.00 on the Toronto Stock Exchange.

This report by The Canadian Press was first published on February 8, 2024.

Companies in this story: (TSX:FFH)

Canadian Press