Dear Baupost Fund Shareholder,. We are pleased to report a gain . of all dividends. m arketfolly. Click here to read more hedge fund letters at MarketFolly. com. Seth Klarman Shareholder Letter March 4, at am by. I found some great excerpt from Seth Klarman’s Annual Letter (H/T to. During the financial crisis, Seth Klarman’s funds lost somewhere between 7% and . Letters – · My Favorite Quote from Baupost’s Annual Letter.

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Do you take cash out of savings to buy more? In short, even the best trained investors would make the same mistakes investors have been making forever, and for the same immutable reason — that they cannot help it.

Email hunter [at] distressed-debt-investing [dot] com. Very curious to know whick bk equities youre invested in. Klarman is a traditional value investor, looking for companies, bonds, credit instruments and real estate opportunities that all trade below what he, and his analysts believe is intrinsic value.

Wisdom from Seth Klarman. Further, if you had to look at a the hedge fund’s aannual of analysis of financials: A special emphasis, like we’ve seen in past years, was on the process, culture, and modus operandi of Baupost.

Operations not meeting these requirements are speculative. When the market started to fall, Klarman profited. Subscribe to ValueWalk Newsletter. Send me ocassional third party offers Yes No. Can you please provdie example of PA postions in each of the following categories? Subscribe Subscribe in a Reader.


I read and do a quick analysis on every public company that files for bankruptcy. Ex the coupon, the upside downside is then 45 points up, 95 points down: Let’s take a distressed bond trading at Klarman attended Cornell University where he received a degree in economics, and later attended Harvard University where he earned an M.

Distressed Debt Investing: My Favorite Quote from Baupost’s Annual Letter

Next is Greg Alexander. This blog will try to bapost distressed debt investing, up and down the capital structure. On the flip side, a big win would be a pull to annial and possible more depending if you get cheap equity i.

While it is always tempting to try to time the market and wait for the bottom to be reached as if it would be obvious when it arrivedsuch a strategy has proven over the years to be deeply flawed. Some of this is a function of selling some winners earlier in the month. I’ll echo the sentiment above, big fan, this was very enjoyable. It is a fantastic letter. Unfortunately, this is the very best case, and the downside in this situation is a zero.

Let’s say you have a hold period of 2 years. Sign Up for a Free Trial Now. In this environment, the chaos is so extreme, the panic selling so urgent, that there is almost no possibility that sellers are acting on superior information.

But despite their invaluable teachings, Klarman actually believes that their work is now somewhat out-of-date:. Therefore, patterns or performance cannot be modelled with any kind of accuracy, or predictability.


Be sure to also check out more recent letters from prominent investors like Warren Buffett’s letter. More often than not, this OID will be 5ish points i.

Is there a function on Bloomberg or another website that has that information? For example, for the first half ofto October 31 the group returned 8. People would still find it tempting to day trade and perform technical analysis on stocks. Results of its Bapost Newer Post Older Post Home. Do you like it better?

Seth Klarman Resource Page

While some of the investment specific information is obviously dated, the wisdom Klarman shares on how to evaluate markets is timeless. Further, we prefer investments, when we can find them at attractive prices, that involve a catalyst for the realization of underlying value. At the not infrequent moments when there is literally no distressed debt worth purchasing, these competitors especially narrowly siloed ones often stray dangerously into origination of new debt instruments at par.

The claims agent websites capture the big cases but how do you find the small cases? We respect your privacy no spam ever.