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Baupost Annual Meeting Notes!


Parsad

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David Lau has put together some truly fantastic notes from Seth Klarman's annual meeting on October 29th.  We are seeing all the same things as Seth, although we think the base case for real estate is the most probable in the U.S.  Some terrific quotes by Seth at the meeting!  I think it will be very interesting to get Hamblin Watsa's and Munger's views on what is going on over the next few months.  Cheers!

 

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Guest misterstockwell

Thanks for sharing those notes. I find it interesting that he is concentrating on distressed debt over equities. I put a slug of cash into Marty Whitman's new Focused Credit Fund(TFCIX, TFCVX), but this has me thinking I should put an even bigger slug in there. It's not an area I feel comfortable doing myself, and Whitman's crew is very good at it.

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Thanks for sharing those notes. I find it interesting that he is concentrating on distressed debt over equities. I put a slug of cash into Marty Whitman's new Focused Credit Fund(TFCIX, TFCVX), but this has me thinking I should put an even bigger slug in there. It's not an area I feel comfortable doing myself, and Whitman's crew is very good at it.

 

You know that those funds are not managed by Marty. They are managed by a different manager within his mutual fund advisory co. I'm sure the whole team of managers at the different funds there discuss and share some ideas, but Whitman doesn't have the final say in what that fund buys and sells.

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Guest kawikaho

Great notes!  I found the statement regarding the March bottom not that surprising.  I didn't think stocks were super cheap.  And now I think stocks are getting quite expensive again.  Although there are some good stories out there that I like.  CVS after the current drop seems interesting. 

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David Lau has put together some truly fantastic notes from Seth Klarman's annual meeting on October 29th.  We are seeing all the same things as Seth, although we think the base case for real estate is the most probable in the U.S. 

 

Are you still bearish on CRE Sanj?

I think there's a valid case, however CRE in major cities like NY shouldn't be a problem in my opinion.

Difference between residential and CRE is that now, the Fed is intent on keeping its accomodative stance for an extended period, which means lots of cheap money to fund projects and push up asset prices. I don't think it will be as severe a collapse as residential.

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Guest misterstockwell

Thanks for sharing those notes. I find it interesting that he is concentrating on distressed debt over equities. I put a slug of cash into Marty Whitman's new Focused Credit Fund(TFCIX, TFCVX), but this has me thinking I should put an even bigger slug in there. It's not an area I feel comfortable doing myself, and Whitman's crew is very good at it.

 

You know that those funds are not managed by Marty. They are managed by a different manager within his mutual fund advisory co. I'm sure the whole team of managers at the different funds there discuss and share some ideas, but Whitman doesn't have the final say in what that fund buys and sells.

 

Oh I am very much aware of who manages them, backgrounds, history, etc.  I trust that the two new managers were well vetted by Mr. Whitman, and vice versa. They also have access to all 21 analysts in the Third Avenue stable. As they say:

 

Investment Team

•Six dedicated investment professionals, including a portfolio manager with 20 years experience

•Credit analysts have an average of 13 years investment experience in distressed and high-yield credit investing, as well as financial restructuring

•The additional 21 investment professionals on Third Avenue’s broader investment team, many of whom have extensive credit experience, also serve as valuable resources

 

Here is the transcript of the call when the fund started. They speak very much like Klarman:

 

http://www.thirdave.com/ta/Documents/pdf/Third%20Avenue%20Focused%20Credit%20Fund%20Transcript.pdf

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Folks,

 

I had to remove the original notes for a reason...as they were somebody else's private notes, but got passed around.  So as much as I know you guys would like to read it, it doesn't mean somebody should copy it and post it here.  Thanks very much!  Cheers!

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Hi Sanjeev,

 

I am sorry to have posted it without giving a thought.

Will take care next time...

thx

 

Folks,

 

I had to remove the original notes for a reason...as they were somebody else's private notes, but got passed around.  So as much as I know you guys would like to read it, it doesn't mean somebody should copy it and post it here.  Thanks very much!  Cheers!

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