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First Explanation I Have Seen On Klarman And Biotech


indythinker85
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http://www.valuewalk.com/2014/09/baupost-klarman-letters/

 

“Our team is continually improving at knowing where to look  for opportunity. Our analysts are doing some really creative work thinking about structural changes in  some companies and industries, which has led to several new public equity investments. Pulling threads  on existing stock investments has led to a few others.” Furthermore, Seth notes further, “I view it as a substantial positive that our  team has the background, talent, and drive to source opportunity in new areas of the markets, generally  with very favorable results. I am also pleased that this old dog (your Portfolio Manager) is still open (I’m  always cautious but open) to learning a few new tricks.”

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Closely guarded.

 

It's not really an explanation, though can't blame him for being secretive.

 

We speculated in the IDIX thread that the bio-techs were mostly his analysts picking in something of a basket/lottery ticket style.  It is weird to reconcile the author of Margin of Safety with those type of investments, and the letter commentary on his team appears to confirm these were their contributions to the fund, less his.

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Closely guarded.

 

It's not really an explanation, though can't blame him for being secretive.

 

We speculated in the IDIX thread that the bio-techs were mostly his analysts picking in something of a basket/lottery ticket style.  It is weird to reconcile the author of Margin of Safety with those type of investments, and the letter commentary on his team appears to confirm these were their contributions to the fund, less his.

 

Right not fully explained but I think he is saying its mostly analysts well versed in area which he did not have in the past. Its not much but its first I have seen Klarman discuss the topic at all - he usually discusses macro, investment process and on rare occasions some distressed and real estate.

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