Southeastern Asset Annual meeting transcript

Here are some things I found interesting:
Southeastern looks to be pretty bullish on outlook for P&C insurers & re-insurers:

Partners Fund: added Berkshire

"We bought a new position in Berkshire Hathaway. For the first time in our careers the
stock fell and remained far enough below intrinsic value for us to buy. The company’s
misunderstood derivative contracts created optically messy short-term results. In
addition, some of Berkshire’s recent investments have been hotly debated, though it is
far too soon to judge their ultimate outcome. The company’s book value (as well as our
appraisal) incorporates the market price of Berkshire’s public equity stakes, which we
believe are also selling for significant discounts to their intrinsic worth.We therefore
are getting a double discount for a company that is financially and competitively
advantaged, has a proven record of terrific insurance underwriting, owns a number of
great brands in non-insurance businesses, and has two of the world’s best capital
allocators at the helm."

Small Cap: hold 9% in Fairfax (3 P&C companies =21% of total portfolio)
- FFH, Everest Re & Markel
"Fairfax, the Fund’s largest holding and best performer in 2008, pulled back 15% in the
first quarter, making it the biggest detractor from results. Fairfax declined after
reporting somewhat weaker than expected fourth quarter insurance and investment
results. The company has never been as strongly capitalized and is well-positioned to
benefit from current investment and underwriting opportunities. Volatility in quarterly
results is a price worth paying for the superior long-term investment returns that
Prem Watsa and his team have delivered to Fairfax shareholders."

"The Small-Cap Fund sold for less than 40% of appraised value at quarter-end.We own
companies that have staying power through the recession due to their financial and/or
business strength. Many will gain advantage over weaker competitors. For example,
the capital positions of Fairfax and Everest Re should enable each to attract more
policies while other underwriters struggle with weaker balance sheets."

International: hold another 9% in Fairfax (3 P&C companies = 24% of total portfolio)
- FFH, Nippon Koa & Sompo

"Owner-operators KS Li, Florentino Perez, Prem Watsa, Lorenzo
Zambrano, and KT Lim have spent their lifetimes creating value by acting intelligently
for the long-term while many around them fret over current events.We do not
know when the market will turn, but we do know that most of the gains will accrue to
those investors with the courage to invest when all others are fleeing."