Seth Klarman (Trades, Portfolio) is one of the most followed value investors ever and one of the most successful hedge fund managers of all time. The founder of Baupost Group, the $27 billion hedge fund has achieved stellar returns for investors over his career, with Business Insider reporting that since 1983, Klarman has made his investors net gains of $22.6 billion. In percentage terms, on average Baupost has returned 19% p.a., even though the fund tends to have a large cash allocation.
During the financial crisis, Seth Klarman (Trades, Portfolio)’s funds lost somewhere between 7% and 13%, certainly outperforming the majority of its hedge fund peer group. Continue Reading »