Seth Klarman

Seth Klarman

Last Update: 04-13-2016

Number of Stocks: 34
Number of New Stocks: 2

Total Value: $5,477 Mil
Q/Q Turnover: 22%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Seth Klarman Watch

  • The 3 Most Important Words in Investing

    Warren Buffett,Charlie Munger,Seth Klarman - The 3 Most Important Words In Investing

    On Margin of Safety


    Margin of Safety, a concept put forth by Benjamin Graham, has been central to the value investing philosophy for quite a while now. So much so the great Warren Buffett (Trades, Portfolio) said margin of safety may be the most important words in investing. So what exactly does the phrase mean and how can you use the idea to your advantage as an individual investor?

      


  • Tweedy Browne Global Value Invests in Bank of New York Mellon

    Tweedy Browne,Seth Klarman - Tweedy Browne Global Value Invests In Bank Of New York Mellon

    Tweedy Browne Company LLC, a successor to Tweedy & Co., was first established by Forrest Birchard Tweedy in 1920 as a dealer in closely held and inactively traded securities. The firm’s 96-year history is grounded in undervalued securities, first as a market maker, then as an investor and investment advisor. The firm takes a value investing approach that focuses on long term investments very similar to Joel Greenblatt (Trades, Portfolio), Seth Klarman (Trades, Portfolio) and the founder of value investing Benjamin Graham.


    During the first quarter, the Tweedy Browne (Trades, Portfolio) Global Value Fund purchased 1,315,780 shares of Bank of New York Mellon Corp. (NYSE:BK).

      


  • On Value Investing

    Warren Buffett,Seth Klarman,Charlie Munger,Mohnish - On Value Investing

    What is value investing? What does it mean? How do you use it as a strategy? And most importantly, does it work? Consider this your entry to – or rediscovery of – the wonderful world of value investing.


    Talking points

      


  • David Abrams Raises Stake in Barnes & Noble Education

    David Abrams,Seth Klarman - David Abrams Raises Stake In Barnes & Noble Education

    Guru David Abrams (Trades, Portfolio) added 9,544 shares to his stake in Barnes & Noble Education Inc. (NYSE:BNED) on April 8.


    Barnes & Noble Education, an independent public company and part of the Barnes & Noble (BN) family of businesses until its separation in 2015, is one of the largest contract operators of bookstores on college and university campuses across the U.S. and a leading provider of digital education services. The company creates and operates campus stores that are focal points for college life and learning, enhancing the educational mission of the institution, enlivening campus culture and delivering an important revenue stream to Barnes & Noble's partner schools.

      


  • 10 Extraordinary Traits

    Warren Buffett,Charlie Munger,Seth Klarman - 10 Extraordinary Traits

    I never heard of Mark Sellers until I came across his speech to Harvard MBAs incidentally. I think this is a great read. Here is the link to the speech:


    Sellers talked about how hard it is to be a great investor, and the chance is less than 2% for a Harvard MBA and 1/50th of 1% for a non-Harvard MBA. While I don’t fully agree that a Harvard MBA is 200 times more likely to be a great investor than a non-Harvard graduate, I am with Sellers regarding the common traits of great investors.

      


  • Seth Klarman Profits From Biotie Therapies Buyout

    Seth Klarman - Seth Klarman Profits From Biotie Therapies Buyout

    Seth Klarman (Trades, Portfolio)’s 2015 investment in pharmaceutical company Biotie Therapies Corp. (NASDAQ:BITI) paid off this week when the company was bought out at a premium.


    The founder of investment adviser Baupost Group held 2,158,889 shares of the company after increasing the position by 54.8% Jan. 19, giving him about 11.4% of its total shares. He disclosed the increase the same day Acorda Therapeutics Inc. (NASDAQ:ACOR), a developer of treatments for neurological disorders, announced a tender offer to acquire all of the company’s existing common stock, American Depository Shares, options and warrants.

      


  • Klarman: Risk Is Both Probability, Potential Amount of Loss

    Seth Klarman - Klarman: Risk Is Both Probability, Potential Amount Of Loss

    It is well-known that for value investors, risk is not standard deviation stemming from prices. Rather, it is the product of the expected loss times the probability of that loss occuring. One of the best efforts in defining risk that I have encountered comes from Seth Klarman (Trades, Portfolio), who, in one of his investor letters, provided a detailed explanation on how he thinks and acts upon this definition of risk. 


    “The risk of an investment is described by both the probability and the potential amount of loss. The risk of an investment—the probability of an adverse outcome—is partly inherent in its very nature. A dollar spent on biotechnology research is a riskier investment than a dollar used to purchase utility equipment. The former has both a greater probability of loss and a greater percentage of the investment at stake.
      



  • Seth Klarman Slashes Bellatrix Exploration Holding

    Seth Klarman - Seth Klarman Slashes Bellatrix Exploration Holding

    Guru Seth Klarman (Trades, Portfolio) attended Cornell University where he graduated with a bachelor's in 1979, and went on to graduate with an MBA from Harvard in 1982. Klarman founded The Baupost Group in 1982, an investment firm that focuses on long term value with similar investment philosophies to the legendary Benjamin Graham. 


    In the first quarter of 2016, Klarman slashed 15,337,219 shares of Bellatrix Exploration Ltd. (NYSE:BXE) from his portfolio, reducing his holding by 63.93%. Klarman now owns 8,653,281 shares of the company.

      


  • Seth Klarman Is Betting Big on Energy

    Seth Klarman - Seth Klarman Is Betting Big On Energy

    According to his latest fillings, Seth Klarman (Trades, Portfolio)’s exposure to the energy sector has never been higher. Three of his top five holders are in the oil and gas space. Here’s a quick primer on his biggest bets.


      


  • How Seth Klarman Decides the Right Time to Sell

    Seth Klarman - How Seth Klarman Decides The Right Time To Sell

    Seth Klarman (Trades, Portfolio) gave an interview directly from the Baupost headquarters for the Ben Graham Center for Value Investing in 2009. As you recall, during that time Baupost was openly active and buying assets when most funds were overly pessimistic about the environment. While I certainly recommend you to go through the whole interview, one of the most interesting comments stemmed from the question: How do you decide when to sell something?


    "We never hold on for the last nickel. I think you do a big mistake when you do that. First of all, we never assume something will go past its fair value. A lot of times people will fall in love with something and buy stock at 10 and think it's worth 20, but it's acting so well when it hits 20, that they hold on until 25 and it's no longer value at all. Not that you shouldn't re-assess if you decide it really has added-value, that this is better than I thought, that retained earnings bring the value higher, that's ok, but to just go along with it because it acts well is irresponsible."

      


  • The Biggest Fear as an Investor

    Seth Klarman, Charlie Munger - The Biggest Fear As An Investor

    Seth Klarman (Trades, Portfolio) was once asked what his biggest fear was as an investor. Here is what he said:


    “For years, when someone asked me what my biggest fear was as an investor in managing my portfolio, my answer was that it was buying too soon on the way down from often very overvalued levels. I knew a market collapse was possible. And sometimes, I imagined that I was back in the 1930s after the market had peaked the year before and then dropped 30%. Surely, there would’ve been some tempting bargains then. And just as surely, you’d have been crushed by the market’s subsequent plunge over the next three years – down to below 20% of 1929 levels. A fall from 70 to 20, and from 100 to 20, would feel almost exactly the same by the time you hit 20. Sometimes being too early becomes indistinguishable from being wrong.

      


  • Mattress, Roulette or Somewhere in Between: Investing With a Margin of Safety

    Warren Buffett, Howard Marks, Seth Klarman - Mattress, Roulette Or Somewhere In Between: Investing With A Margin Of Safety

    Does more risk equal more return?


    Conventional investment advice suggests that high returns are only achieved when taking high risks. This makes sense to some degree.

      


  • Seth Klarman on the Best Way to Learn - Practice

    Seth Klarman - Seth Klarman On The Best Way To Learn - Practice

    After reading an article by Roger Lowenstein defending the efficient market hypothesis, Seth Klarman (Trades, Portfolio) wrote an article in which he provided arguments in favor of value investing and the obvious market inefficiencies ("A Response to Lowenstein’s Searching for Rational Investors in a Perfect Storm," Journal of Corporation Law, 2005).


    In the article, Klarman provided a strong argument about two things: the importance of practice against theories and the relevance of observing and reaching common-sense conclusions.

      


  • Seth Klarman and How to React to a Market Downturn

    Seth Klarman - Seth Klarman And How To React To A Market Downturn

    During 2009, The Outstanding Investor Digest interviewed Seth Klarman (Trades, Portfolio) on his views after the subprime bubble burst. Some of the comments made by Klarman remain as relevant today as in those days. Here are some of the best excerpts from the interview:


      


  • Seth Klarman on the Disruptive Forces of Technology

    Seth Klarman - Seth Klarman On The Disruptive Forces Of Technology

    In his most recent annual letter to Baupost's shareholders, Seth Klarman (Trades, Portfolio) discussed his views on how flexible investors' approach should be and the potential that technology has to transform investing and research.


    Klarman also mentioned that no industry is safe from a transformation due to the big technological changes we face.

      


  • Buffett-Like Investor Allan Mecham on Making Mistakes

    Warren Buffett, Seth Klarman - Buffett-Like Investor Allan Mecham On Making Mistakes

    With the inevitable comparisons to Warren Buffett (Trades, Portfolio), Arlington Value Capital's manager, Allan Mecham, has released his annual letter to investors. His 7.5-year annualized return is now 30.9% against the 8.7% generated by the S&P 500. However, this was the first year in over seven years in which the fund has registered a loss. I found it very interesting and peculiar the way Mecham approached and discussed the negative year.


    "Unfortunately, part of our poor performance in 2015 can't be attributed to a manic "Mr. Market" as it reflects mistakes I made. The poor results do not stem from a bevy of blunders; rather, my discipline slipped and execution suffered."

      


  • Insiders Roundup: Theravance Biopharma, Western Gas, Upland Software

    Seth Klarman, Chuck Royce, Joel Greenblatt - Insiders Roundup: Theravance Biopharma, Western Gas, Upland Software

    The All-in-One Screener can be used to find insider buys and sells over the last week by clicking on the Insiders tab and changing the settings for All Insider Buying to “$1,000,000+” and duration to "March 2016."


    According to the above filters, the following are recent buys from company insiders in the past week.

      


  • David Swensen Bets on Antero Resources

    David Swensen,Seth Klarman,Glenn Greenberg,David T - David Swensen Bets On Antero Resources

    David Swensen (Trades, Portfolio), the chief investment officer at Yale University since 1985, is responsible for managing and investing the university's endowment assets and investment funds, which total over $22 billion. The following are his heavily weighted trades during the fourth quarter.


    He acquired a new position and bought 8,740,871 shares in Antero Resources Corp. (AR) with an impact of 56% on the portfolio.

      


  • The Most Important Variable for Rate of Return

    Warren Buffett,Charlie Munger, Seth Klarman - The Most Important Variable For Rate Of Return

    One of the most important and generally overlooked lessons from "The Intelligent Investor" is what the rate of return we desire must depend on. The most accepted principle in modern finance is that it goes hand-in-hand with the degree of risk that we are willing to take. But as value investors we know that the price volatility is not reflective of risk. What then, according to Ben Graham, is the most important factor to determine what we must demand as a rate of return?


    "It has been an old and sound principle that those who cannot afford to take risks should be content with a relatively low return on their invested funds. From this there has developed the general notion that the rate of return which the investor should aim for is more or less proportionate to the degree of risk he is ready to run.

      


  • Seth Klarman and His Investment Philosophy

    Warren Buffett, Seth Klarman - Seth Klarman And His Investment Philosophy

    I recently got the opportunity to read a Barron's interview with Seth Klarman (Trades, Portfolio) in 1991. Overall, Klarman discusses his investment philosophy and some attributes that have propelled Baupost's success. Among my favorite quotes are the following:


    "We have historically done very well in down markets. Our general predisposition is that we ought to run our money as if it is our own. And in fact it is our own. As I said, each of the people that work here has his money invested, as well. So we tend to only make investments when we think there is a compelling opportunity being presented. And often we will hold a third or half in cash or even more, awaiting such opportunities. As a result, while we do not do any allocation based on our view of the macro economy or top-down view of the market, by looking bottom-up for opportunities and failing to find them, that tends to self-regulate."

      


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