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Fairfax Financial (OTCQB:FRFHF) is a Canadian insurance company with one of the best investment track records in the business. Its equity portfolio with hedging has outperformed the S&P 500 by some 10% annually over the last 15 years. Some people liken it to Berkshire Hathaway as they are both in the same primary business and have strong investment results.

The company recently filed a 13F with the SEC for the third quarter. Since Fairfax Financial's investment results have been outstanding, I thought it would be instructive to take a look at the changes in Fairfax Financial's Portfolio.

Between the end of the second quarter and the end of the third quarter, there were eleven changes in stock positions. Three new positions were initiated, one was eliminated and seven were increased or decreased. The biggest changes by far were an elimination of the position in Kraft (KFT) and a drastic decrease in SandRidge Energy (SD) holdings.

It's interesting to note that Warren Buffett has also been selling Berkshire Hathaway's position in Kraft (KFT). Two other big changes were an increase in holdings of Level 3 Communications (LVLT) and a large purchase of Research in Motion (RIMM). Two of the new purchases, Continuecare (CNU) and Motorola Mobility (MMI), appear to be merger arbitrage positions. Both agreed to be acquired during the third quarter, and it is highly unlikely Fairfax Financial initiated the positions before the acquisition announcements.

The full list of changes is below:

Company Change in Shares % of Portfolio
Level 3 Communications (LVLT) +55,589,998 17.13%
Research in Motion (RIMM) +3,425000 14.2%
SandRidge Energy (SD) -16,960,600 1.43%
Kraft Foods (KFT) -5,365,751 0%
NewMarket (NEU) -1500 0.02%
CNinsure (CISG) -9,700 0.02%
Citigroup (C) +5000 0.02%
The New York Times (NYT) +10,1000 0.01%
Motorola Mobility (MMI) +37,500 0.08%
Primero Mining (PPP) +230,000 0.04%
Continuecare (CNU) +61,100 now aquired 0%
Source: Recent Changes In Fairfax Financial's Portfolio