indythinker85 Posted September 10, 2014 Share Posted September 10, 2014 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.” Link to comment Share on other sites More sharing options...
yadayada Posted September 10, 2014 Share Posted September 10, 2014 where is the letter? Link to comment Share on other sites More sharing options...
Philip Morris IV Posted September 10, 2014 Share Posted September 10, 2014 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. Link to comment Share on other sites More sharing options...
indythinker85 Posted September 11, 2014 Author Share Posted September 11, 2014 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. Link to comment Share on other sites More sharing options...
CorpRaider Posted September 11, 2014 Share Posted September 11, 2014 I think its somewhat likely they got comfortable with discounted (or perhaps offered and declined settlement) the value of the litigation with Gilead as their margin of safety. They had some conviction for sure. Link to comment Share on other sites More sharing options...
indythinker85 Posted September 15, 2014 Author Share Posted September 15, 2014 More from Baupost (although not on biotech) http://www.valuewalk.com/2014/09/seth-klarman-cautions-against-the-bubble-in-complacency/ Link to comment Share on other sites More sharing options...
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