Seth Klarman (Trades, Portfolio) is one of the world’s most respected value investors, and he is an investor I have done a substantial amount of work on in the past. Klarman’s style of investing is simple; he is on the lookout for companies trading at a deep discount to intrinsic value. This is not as simple as it seems however. Klarman’s particular style of value investing is not just limited to estimating how a particular company will grow over the next few years. Instead, Klarman is on the lookout for businesses trading at a deep discount to their current asset value. More often than not, trying to find these companies requires plenty of work, which puts investors off.
Looking through Klarman’s portfolio, it is clear even the rest of the world’s most renowned value investors are afraid to follow his lead on several positions. Take Viasat Inc. (NASDAQ:VSAT) for example. Of the many great value investor portfolios tracked by GuruFoucs, Klarman is one of four investors to hold a stake in the satellite provider. PBF Energy Inc. (NYSE:PBF) is another position Klarman likes but the rest of Wall Street appears to hate. Continue Reading »