Klarman Holding 50 Percent Cash

[Guest]

Hey indy, I sent you a PM the other day. Did you receive it?

[Shawn]

This is the largest excerpt I've seen yet: http://www.gurufocus.com/news/250403/seth-klarman-2013-letter-to-investors-the-truman-show

 

That was a good read, very fascinating. I think he's right and I think he's on to something. Should it come to life, it may present some great buying opportunities. I swear Prem said the same thing at last year's shareholder meeting with regards to global markets and there not being enough productivity to supplement growth.

[indythinker85]

Klarman buying up Greek banks http://www.valuewalk.com/2014/05/baupost-letters-2014/

[muscleman]

Klarman buying up Greek banks http://www.valuewalk.com/2014/05/baupost-letters-2014/

 

These Greek banks have been a mystery to me. What is so good to buy at 60% of common tangible book for a bank that has 30% NPA? I have BPOP and I am much more comfortable with it than these Greek banks.

Why is Prem and Klarman buying? ::)

[KCLarkin]

Looks like he should have put his excess cash into IDIX. Lordy.

http://www.cnbc.com/id/101728450

 

[rukawa]

 

That was a good read, very fascinating. I think he's right and I think he's on to something. Should it come to life, it may present some great buying opportunities. I swear Prem said the same thing at last year's shareholder meeting with regards to global markets and there not being enough productivity to supplement growth.

 

Except that Klarman and Prem believe in precisely opposite things. Klarman is betting on hyper-inflation and Prem is betting on deflation.

 

My personal view is that neither is right now likely. My only worry is Janet Yellen. I think she is an idiot. A really stupid idiot. And it scares me that she is running the Fed. Luckily there are other Fed governors. But she really scares me.

[muscleman]

 

That was a good read, very fascinating. I think he's right and I think he's on to something. Should it come to life, it may present some great buying opportunities. I swear Prem said the same thing at last year's shareholder meeting with regards to global markets and there not being enough productivity to supplement growth.

 

Except that Klarman and Prem believe in precisely opposite things. Klarman is betting on hyper-inflation and Prem is betting on deflation.

 

My personal view is that neither is right now likely. My only worry is Janet Yellen. I think she is an idiot. A really stupid idiot. And it scares me that she is running the Fed. Luckily there are other Fed governors. But she really scares me.

 

What made you think she is bad?

[sys]

My only worry is Janet Yellen. I think she is an idiot.

 

that seems pretty unlikely.

[jay21]

 

That was a good read, very fascinating. I think he's right and I think he's on to something. Should it come to life, it may present some great buying opportunities. I swear Prem said the same thing at last year's shareholder meeting with regards to global markets and there not being enough productivity to supplement growth.

 

Except that Klarman and Prem believe in precisely opposite things. Klarman is betting on hyper-inflation and Prem is betting on deflation.

 

My personal view is that neither is right now likely. My only worry is Janet Yellen. I think she is an idiot. A really stupid idiot. And it scares me that she is running the Fed. Luckily there are other Fed governors. But she really scares me.

 

Can you post anything from Klarman from the last year or 2 about him being worried about hyperinflation?  Sorry if it's a link already in thread, I just do not remember him saying that.

[peter1234]

From his speech at Jim Grant's conference:

 

“There will be a day when the world looks very different, so when we rack our brains – how we might protect ourselves – we’re looking for cheap optionality. Rates will be higher at some point,” he said, according to a transcript of the speech. “I don’t know where rates would be if not for all this QE and bond buying and expansion of the Fed balance sheet. So what we come up with over and over is gold, the one place you probably want exposure.”

[Ham Hockers]

“I don’t know where rates would be if not for all this QE and bond buying and expansion of the Fed balance sheet. So what we come up with over and over is gold, the one place you probably want exposure.”

 

Are treasury prices (rates) more influenced by the incremental purchase of new issues or by the willingness to hold the currently outstanding stock? I don't know the answer for sure, but one of these has been more correct over the past several years.

[fareastwarriors]

Baupost Buys Stake in LNG Developer Looking at More Projects

 

 

 

http://www.bloomberg.com/news/2014-06-13/baupost-buys-stake-in-lng-developer-looking-at-more-projects-1-.html

[Guest]

http://www.zerohedge.com/news/2014-09-17/seth-klarman-we-are-recreating-markets-2007

 

Most recent letter.

[innerscorecard]

http://www.zerohedge.com/news/2014-09-17/seth-klarman-we-are-recreating-markets-2007

 

Most recent letter.

 

I enjoyed the letter. Thanks for the link. But I had to copy and paste it into MS Word and remove all formatting. I couldn't read it with Zero Hedge's sensationalist bolding and underlining.

[Guest]

anyone find it funny that Klarman was more bearish in 2010 than he is now (returning money then vs raising in March) but Buffett is way more bearish now?

 

https://www.marketwatch.com/story/baupost-returning-some-money-to-investors-2010-11-10

[jschembs]

anyone find it funny that Klarman was more bearish in 2010 than he is now (returning money then vs raising in March) but Buffett is way more bearish now?

 

https://www.marketwatch.com/story/baupost-returning-some-money-to-investors-2010-11-10

 

Do you have a link to Klarman's recent musings?

 

I do find it interesting to see Munger and Buffett signaling in their respective ways (Munger more overtly, Buffett more covertly) a real concern.

 

From Munger's 4/17 WSJ interview:

 

“I do think, sooner or later, we’ll have an economy back, which will be a moderate economy. It’s quite possible that never again—not again in a long time—will we have a level of employment again like we just lost. We may never get that back for all practical purposes. I don’t know.”

[Guest]

This is pretty much all I know:

 

 

https://www.bloomberg.com/news/articles/2020-03-19/klarman-sees-bargains-baupost-seeks-more-capital-during-chaos

[Ballinvarosig Investors]

https://www.dataroma.com/m/hist/p_hist.php?f=BAUPOST

 

Klarman's US equity exposure at the lowest level in over ten years. 

[fareastwarriors]

Baupost Cuts Almost a Fifth of Investing Staff in Record Cull

 

Seth Klarman’s Baupost Group dismissed about 19% of the hedge fund’s investing team in a shakeup of its real estate and equities units — the largest cull in the firm’s 42-year history.    

 

The move affected 11 of 59 investing personnel, with the cuts distributed roughly evenly between the two businesses, according to a letter sent to investors Thursday and seen by Bloomberg. 

[Gregmal]

50 minutes ago, fareastwarriors said:

Baupost Cuts Almost a Fifth of Investing Staff in Record Cull

 

Seth Klarman’s Baupost Group dismissed about 19% of the hedge fund’s investing team in a shakeup of its real estate and equities units — the largest cull in the firm’s 42-year history.    

 

The move affected 11 of 59 investing personnel, with the cuts distributed roughly evenly between the two businesses, according to a letter sent to investors Thursday and seen by Bloomberg. 

What an asshole. He s sucked for an eternity and now just doesn’t want to pay people he can clearly afford to keep. Guess that 4-5% yielding cash wasn’t doing it for him. 

[Cevian]

I have my doubts on whether Baupost has really outperformed over time.

 

I think Seth is a marketing genius though. For instance, I don't believe he himself has ever said he has outperformed the market but, somehow, such image has been built slowly over the years. 

 

I remember an interview for example where he implied it was a conscious decision not to re-publish his book "Margin of Safety" since it had a cult-like following and had been a good marketing tool. Also, the secrecy behind the annual letters, the "leaks" that happen from time to time, going after websites which publish the letter, has created this aura of mystery and genius. Every interview starts with "Legendary Investor" but, again, he's never claiming that but the interviewer on CNBC.

 

I would love to be proven wrong if his annual performance numbers were ever revealed.

 

As with other investor who are, wrongly, seen as investor gurus, the only reason it bothers me is because it dupes people into investing with them for the wrong reasons.

[scorpioncapital]

He seems too focused on value (sometimes involving too much debt or lack of growth) to the point of falling for value traps. Then he had some biotech investments which I never understood - too random and how does it mesh with value anyway? Perhaps a focus on growth , even GARP might have been better? Then again, big size of the company might also be an issue.