Fairfax shares have had a stellar run in 2014 after delivering what some believe to be a turn around result. Many investors looked at Fairfax at low levels and felt the market valuation did not reflect the sum of all the businesses within Fairfax. Tim Carleton, Portfolio Manager at Auscap AM, says they are not convinced of the current valuation. We have sold our exposure to Fairfax Media (FXJ). The stock has doubled from a year earlier and the valuation, even on a sum of the parts basis, is now looking stretched. Even though the business appears to have turned the corner there are still structural challenges and cyclical advertising expenditure headwinds that need to be carefully managed.