Seth Klarman

The Baupost Group

Last Update: 2013-05-14

Number of Stocks: 22
Number of New Stocks: 4

Total Value: $3,109 Mil
Q/Q Turnover: 24%

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Seth Klarman's Profile & Performance

Profile

Seth Klarman is a value investor and Portfolio Manager of the investment partnership The Baupost Group. Founded in 1983, The Baupost Group now manages $7 billion, and has averaged returns of nearly 20% annually since their inception. Seth Klarman is the author of the book "Margin of Safety" which sells for over $1000. Mr. Klarman attended Cornell University where he received a degree in economics, and later attended Harvard University where he earned an M.B.A.

Web Page:http://www.baupost.com/

Investing Philosophy

Seth Klarman invests in a wide array of investments ranging from fairly traditional value stocks to more esoteric investments like distressed debt, liquidations, and foreign equities or bonds. Klarman doesn't mind "doing nothing" on occasion. He is completely unperturbed by the idea of sitting on the sidelines holding cash whenever investment opportunities are scarce. In fact, in 2005 and 2006, nearly half of his portfolio was held in cash. Investing, he cautions, is more than just producing absolute returns. Too often investors focus on that one easy number "return" and ignore the risks incurred to generate that number.

Total Holding History

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Performance of Baupost Fund

Year	Return (%)	S&P500 (%)	Excess Gain (%)
2001	27.1	-11.9	39.0
2000	9.9	-9.1	19.0
1999	-18.3	21	-39.3
3-Year Cumulative	14.1 (4.5%/year)	-3.1 (-1%/year)	17.2 (5.5%/year)
1998	30	28.6	1.4
1997	24.8	33.4	-8.6
5-Year Cumulative	85.1 (13.1%/year)	66.2 (10.7%/year)	18.9 (2.4%/year)
1996	13.1	23	-9.9
1995	8.1	37.6	-29.5
1994	13.4	1.3	12.1
1993	18.9	10.1	8.8
1992	9.5	7.6	1.9
10-Year Cumulative	234.2 (12.8%/year)	237.6 (12.9%/year)	-3.4 (-0.1%/year)

Commentaries and Stories

Currently 2.00/5

Rating: 2.0/5 (3 votes)

Seth Klarman Buys Warrants, 2 New Stocks

May 15, 2013

Seth Klarman, the legendary investor of the Boston-based Baupost Group, bought four new stocks in the first quarter, according to GuruFocus Real Time Picks Data. He is a cautious value investor who often holds significant cash reserves when profitable ideas do not present themselves. “In my opinion, the market tells you when you buy things. And when things are really cheap, on a Graham and Dodd valuation basis, you should like them more,” he said in an Endowment Management Seminar in 2008. More...

Currently 2.00/5

Rating: 2.0/5 (2 votes)

Seth Klarman Buys BP, AIG, Elan Corp, Sells News Corp., Oracle

May 14, 2013

Renowned value investor Seth Klarman just reported his first quarter portfolio. Seth Klarman buys BP, AIG, Elan Corp, Rovi Corp, Idenix Pharmaceuticals, Inc., Directv, sells News Corp, Oracle, Genworth Financial Inc, Allied Nevada Gold Corp, Ituran Location and Control, Ltd. during the 3-months ended 03/31/2013, according to the most recent filings of his investment company, The Baupost Group. As of 03/31/2013, The Baupost Group owns 22 stocks with a total value of $3.1 billion. These are the details of the buys and sells. [list]New Purchases: ELN, DTV,Added Positions: BP, AIG, ROVI, More...

Currently 4.25/5

Rating: 4.3/5 (4 votes)

In Search of Treasure

May 14, 2013

As a child, I remember tunneling my way through a box of Cracker Jacks or through a box of the latest sugary cereal in search of the bottom, hoping my fingers could grasp the prize that was promised on the front of the box. Sometimes you would stretch out your fingers with the gratification that you could suddenly feel the bottom, though unable to actually see it. Now you might be able to locate your archeological treasure. More...

WARREN BUFFETT, SETH KLARMAN

Currently 4.61/5

Rating: 4.6/5 (18 votes)

Book Review: The Most Important Thing

May 8, 2013

If Warren Buffett, Christopher Davis, Joel Greenblatt and Seth Klarman recommend a book, it might—just might—be worth reading. It certainly got my attention. Warren Buffett calls Howard Marks’ The Most Important Thing “that rarity, a useful book.” And as a researcher with a library of a couple hundred books myself, I couldn’t agree more. More...

Currently 3.00/5

Rating: 3.0/5 (2 votes)

Numbers for the Day

May 8, 2013

52% More...

TSCDY, IDIX

Currently 3.00/5

Rating: 3.0/5 (2 votes)

2008 Interview Transcript - Seth Klarman

April 23, 2013

2008 Interview Transcript - Seth Klarman More...

Currently 4.00/5

Rating: 4.0/5 (3 votes)

118 Metals and Mining Companies at 52-Week Low

April 22, 2013

The GuruFocus 52-week low screener reveals that 118 companies in Metals and Mining are at a 52-week low, five companies are at a 52-week high and the low/high ratio is 23.6. More...

GOLD, SILVER, COPPER, INDUSTRIAL METALS & MINERALS

Currently 3.00/5

Rating: 3.0/5 (2 votes)

The Psychology of Leadership - An Interview with Seth Klarman

April 19, 2013

Finding an interview with Seth Klarman is a little bit like getting to watch a solar eclipse. Neither event happens with much frequently, so it is best to take advantage of the opportunity to view it. More...

Currently 4.84/5

Rating: 4.8/5 (31 votes)

Seth Klarman - Twenty Investment Lessons That Should Have Been Learned From the 2008 Crash

April 14, 2013

The following is an excerpt from the 2010 annual letter of Baupost Capital's Seth Klarman who was shocked at how quickly investors have returned to the risky behavior that got them in trouble in the first place. More...

Investment Lessons

Currently 3.13/5

Rating: 3.1/5 (8 votes)

All Over for Gold? Canadian Insiders Don't Think So

April 5, 2013

While investors seem to have lost hope in gold, Canadian insiders are taking full advantage of the dwindling share prices of their companies. The current price of gold is sitting around $1,566 (U.S. dollars) per ounce, a multi-year low, and in result many investors are saying goodbye to their gold stocks. This has proven to be quite the opposite for insiders in the gold mining and distributing industries. The TSX has shown that the gold market currently has the highest amount of insiders buying. Insiders have typically been proven to be contrarian investors, meaning they buy shares when they perceive them to be undervalued. If this is the case then it appears that quite a few insiders think that their stocks are quite undervalued. More...

Currently 2.20/5

Rating: 2.2/5 (5 votes)

IDIX at 52-Week Low - Gurus Cohen, Klarman Holding On

April 3, 2013

The GuruFocus 52-week low screener reveals that Idenix Pharmaceuticals (IDIX) is at a 52-week low, with a low price of $3.32 (73.7% off its $12.61 high). Two Guru investors Steven Cohen and Seth Klarman appear to value this stock, as they are holding on. More...

Currently 5.00/5

Rating: 5.0/5 (5 votes)

Classic Klarman - 2008/2009 Interview with the Value Investing Legend

April 1, 2013

Klarman 2009 Interview More...

Currently 2.67/5

Rating: 2.7/5 (6 votes)

Value Investor Seth Klarman's New Moves

March 29, 2013

Seth Klarman manages one of the largest hedge funds in the world, The Baupost Group, founded in 1983 and managing some $7 billion. Klarman is also the author of the "Margin of Safety" book which has been known to sell for over $1,500. Klarman and his hedge fund invest across a number of areas and investments, including value-oriented stocks and distressed debt. Of late, it appears that Klarman is overly bearish on the tech industry, while being bullish on a highly popular insurance stock (check out Klarman's cheap stock picks). More...

Currently 5.00/5

Rating: 5.0/5 (4 votes)

Seth Klarman - IDIX Mega Shares and New FDA 'Breakthrough' Track

March 29, 2013

As of Feb. 9, 2013, Guru Seth Klarman, legendary value investor of The Baupost Group, added 49.69% to his Idenix Pharmaceuticals Inc. (IDIX) mega position currently at 24,740,200 shares. The current share price is $3.54 with a change from average down 28%. Klarman first bought a new IDIX holding of 1,255,700 shares, in the quarter ending June 30, 2011. More...

PHARMACEUTICAL

Currently 3.22/5

Rating: 3.2/5 (9 votes)

Seth Klarman - Keeps Buying Alaska Copper and Gold

March 21, 2013

"Investing is the intersection of economics and psychology,” according to Guru Seth Klarman, legendary value investor of The Baupost Group, and there is no more exciting theater for both than that of a possible gold rush, well-known in Alaskan history. Klarman is investing in companies that own and know Alaska’s Donlin Creek area, one of the largest known undeveloped gold deposits in the world. Novagold Resources (NG) and its spinoff NovaCopper (NCQ) are on his buy list. More...

GOLD, PRECIOUS METALS

Currently 4.00/5

Rating: 4.0/5 (9 votes)

Microsoft, Quality, Durable, High Yielding, liquidity and CHEAP!!!

February 16, 2013

It is completely bizarre that we see investors husbanding cash and holding Treasury bonds rather than investing in some of the best companies in the world. Imagine investing in assets that offer the investor a "negative real rate of return" rather than investing in a proven leader with rock solid finances growing sales and earnings, at a price that offers a compelling if not out right high yield and with liquidity? More...

LONG MSFT

Currently 3.33/5

Rating: 3.3/5 (3 votes)

Seth Klarman’s Baupost Group Buys AIG, Idenix Pharmaceuticals, Sells Hewlett-Packard, Oracle, Microsoft

February 13, 2013

Renowned value investor Seth Klarman just reported his 4th quarter portfolio. He buys American International Group Inc, Idenix Pharmaceuticals, Inc., Viasat Inc, sells Hewlett-Packard Co, News Corporation, Oracle Corporation, Allied Nevada Gold Corp, Microsoft Corporation, Sycamore Networks, Inc. during the 3-months ended 12/31/2012, according to the most recent filings of his investment company, The Baupost Group. As of 12/31/2012, The Baupost Group owns 21 stocks with a total value of $3.1 billion. These are the details of the buys and sells. More...

Currently 3.50/5

Rating: 3.5/5 (10 votes)

7 Low Risk Investments Strategies You Should Apply Today

January 31, 2013

There is no such thing as a zero risk investment. The supposedly risk free 10 year treasury bill yields less than 2%. There is a high risk that inflation would eat all of those gains quite easily. But there is such a thing as low risk investments. It’s unconventional but it’s there. More...

Currently 4.60/5

Rating: 4.6/5 (15 votes)

How Do Expert Investors Make Sell Decisions?

January 19, 2013

The decision to sell liquid investments such as stocks and bonds is much harder than the buy decision. The reason for this is simple: human emotion. When an investor is considering purchasing a new position they aren’t psychologically wedded to the idea. Therefore, they can be open regarding the relative strengths and weaknesses of the investment. More...

SELL METHODOLOGY, VLAUE INVESTING, KLARMAN, NYGREN, GRAHAM, WHITMAN, FISHER, BARUCH

Currently 4.50/5

Rating: 4.5/5 (2 votes)

How Seth Klarman (Baupost) Scored a Big Win from the Bernie Madoff Mess

January 17, 2013

It is always fascinated to see how many different ways value investing can be used to earn a return. Here is a story on Baupost doing just that: More...