Seth Klarman

Seth Klarman

Last Update: 2014-02-13

Number of Stocks: 19
Number of New Stocks: 3

Total Value: $3,529 Mil
Q/Q Turnover: 7%

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

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

Performance of Baupost Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
200127.1-11.939.0
20009.9-9.119.0
1999-18.321-39.3
3-Year Cumulative14.1 (4.5%/year)-3.1 (-1%/year)17.2 (5.5%/year)
19983028.61.4
199724.833.4-8.6
5-Year Cumulative85.1 (13.1%/year)66.2 (10.7%/year)18.9 (2.4%/year)
199613.123-9.9
19958.137.6-29.5
199413.41.312.1
199318.910.18.8
19929.57.61.9
10-Year Cumulative234.2 (12.8%/year)237.6 (12.9%/year)-3.4 (-0.1%/year)

Top Ranked Articles

Seth Klarman on the Art of Complex Deep Value Investing
Seth A. Klarman, President of The Baupost Group, averaged about 20% per year for 24 years with only one negative year. This digest of Seth A. Klarman’s investment strategies and practices is mainly based on a guest lecture by superinvestor Seth Klarman at Columbia Business School and his book, Margin of Safety. Many sections here are not Klarman’s exact words, but our digest of the distilled essence of his investment methods. Read more...
Jason Zweig Interviews Seth Klarman At CFA Institute Annual Conference
I was reading Dah Hui Lau's notes from May in which Jason Zweig interviews Seth Klarman. It sparked my interest whether the interview would be available two months later and found it. Read more...
Charlie Rose Interviews Seth Klarman
Charlie Rose Interviews Seth Klarman. The first 18 minutes is about "Facing History", his nonprofit organizaiton. Then they got to the book of "Margin of Safety". Klarman's view of Warren Buffett's three stages of investing: "Warren evolves three stages". He said he is still in the first stage. Read more...
Analysis of Targacept: Seth Klarman's New Purchase
An analysis on Seth Klarman's new purchase: Targacept (TRGT) Read more...
Interview with Amitabh Singhi, Managing Director at Surefin Investments
Amitabh Singhi is managing director at Surefin Investments, an India-based portfolio management and investment advisory company. Since inception in mid-2001 the fund has returned 27.9% annualized, net of all fees to investors (as of 2011). Mr. Singhi graduated with a B.S. in economics from the Wharton School at the University of Pennsylvania, with concentrations in finance and management. Amitabh was one of the speakers at the last Value Investing Congress in New York. Read more...
» More Seth Klarman Articles

Commentaries and Stories

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Invest Like Benjamin Graham in Singapore Stocks
Benjamin Graham is the father of value investing and his way of value investing was to search for net-net stocks, and construct a basket of them as his portfolio. His method of value investing is still being widely practiced by value investors such as Seth Klarman (Trades, Portfolio), Third Avenue Management (Trades, Portfolio), etc. In this blog post, I would like to refer to an article by CLSA to explore the idea of investing in Graham-like stocks in the Singapore stock market. More...

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Two Seth Klarman Stocks in His Top-Weighted Tech Sector Reach Five-Year Highs Seth Klarman - Two Seth Klarman Stocks In His Top-Weighted Tech Sector Reach Five-Year Highs
Seth Klarman (Trades, Portfolio), a renowned value investor at the Baupost Group, has a dire forecast for markets. In his 2013 annual letter, he said that he sees a “Truman Show” market which is precarious even though it doesn’t look that bad. He names as positive factors: elevated but not extreme P/E ratios, shrinking deficits, mending consumer balance sheets, recovering U.S. housing, nearing energy independence, low bond yields and low interest rates. More...

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Three Key Takeaways from Seth Klarman’s 2013 Letter
Seth Klarman (Trades, Portfolio) of Baupost is clearly skeptical of two big themes today. (Check out notes from his 2013 annual letter here and here.) More...

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The Choice Of A Discount Rate: Excerpts From Seth Klarman's 'Margin Of Safety' Seth Klarman - The Choice Of A Discount Rate: Excerpts From Seth Klarman's 'Margin Of Safety'
“Ultimately investors must choose sides. One side – the wrong choice is a seemingly effortless path that offers the comfort of consensus.” – Seth Klarman (Trades, Portfolio) More...

SETH KLARMAN


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Inflation Is Coming, Inflation Is Coming!! Seth Klarman - Inflation Is Coming, Inflation Is Coming!!
Most know about the famous story of Paul Revere, the colonial patriot that rode from Boston to warn that the British troops were advancing upon the cities. Revere was the son of a silversmith and eventually was successful after the war as a silversmith himself. He also built the first copper mill and designed the original Continental currency. Less known is that Revere was with two other men on that famous ride, Samuel Prescott and William Dawes, who seem to appear only as footnotes in history, and are left out of the famous poem of that historic journey. More...

KLARMAN, MARKS, INFLATION


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Tocqueville Asset Management - A Matter of Odds: Not Everything That Is Suppose to Work, Works All the Time
The recent and ongoing confrontation between Russia and Ukraine over Crimea, with its saber rattling and flurry of diplomatic activity, has uncovered a lot of confusion about the causes, motives, and ultimate outcome of this crisis, as well as its likely economic and financial consequences. More...

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John Mauldin's Outside the Box - Seth Klarman: Investors Downplaying Risk 'Never Turns Out Well'
Seth Klarman (Trades, Portfolio): Investors Downplaying Risk “Never Turns Out Well” More...

JOHN MAULDIN, SETH KLARMAN


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Value Investor Ron Muhlenkamp Doesn't Agree with Seth Klarman's Stock Market Warning
Seth Klarman (Trades, Portfolio) thinks any time the stock market goes up 30% in a year but corporate earnings stay flat is a cause for alarm. More...

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Rating: 3.0/5 (7 votes)

What You Need to Look At to Find Exceptional Returns Seth Klarman - What You Need To Look At To Find Exceptional Returns
Pope Brar is a money manager based on the West Coast who has spent a considerable amount of time analyzing the success (as well as the failure) of some of the greatest investors. More...

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A Conversation With Jean-Marie Eveillard
I had the honor to meet one of the greatest investors of all time, Jean-Marie Eveillard (Trades, Portfolio), on the day that the winter storm hit New York City. The weather was inclement, but Mr. Eveillard offered the warmest welcome to a young value investor he barely knew. In a conversation that lasted a more than an hour, I learned why he is such an incredible investor as well as a remarkable human being. More...

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Seth Klarman on His Book 'Margin of Safety'
More...

SETH KLARMAN, BAUPOST GROUP


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A Classic 1991 Interview with Seth Klarman
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Seth Klarman Buys New Stock Kindred Biosciences, Cuts Stake in Enzon Seth Klarman - Seth Klarman Buys New Stock Kindred Biosciences, Cuts Stake In Enzon
Seth Klarman (Trades, Portfolio) of the Boston-based Baupost Group, which trades sparingly, has purchased a new stock: Kindred Biosciences (KIN), according to GuruFocus Real Time Picks. More...

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Where Lightning Strikes - Lone Pine’s Low P/E Stocks in Review
The legendary hedge fund investor and philanthropist Steve Mandel founded Lone Pine Capital LLC in 1997.  His hedge fund is named after a pine tree at Dartmouth College, his alma mater.  Legend has it that the lone pine tree survived a lightning strike in 1887. More...

MEDIA – DIVERSIFIED, APPAREL STORES


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My Investor Holiday Reading List, Part 1 Warren Buffett,Seth Klarman - My Investor Holiday Reading List, Part 1
The thing I love the most about investing is learning. Investing is a never-ending, open-ended, multidisciplinary learning endeavor. You can always get better. Just like a shark that has to keep moving to live (breathe), an investor has to keep learning and improving to survive. Books are one important learning tool. In this and my next two columns, I’ll share with you an abbreviated list of books that have helped me along the way and may do the same for you. More...

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A High Yield Oil & Gas Portfolio
Even when the Federal Reserve has already decided to start diminishing the rate at which its buying securities, interest rates are still at record low levels. Hence, its still very tough to get decent yields through buying high grade bonds with maturities below 15 years. If rates start going up, high grade bond prices should plunge, and this makes them risky at current market prices. On the other hand, we can find most international corporations increasing their cash returns to shareholders through dividends and buybacks. Here I chose three high quality oil and gas stocks that are poised to keep paying high cash dividend yields. More...

LONG, OIL & GAS


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Give the Gift of Value - Holiday Gift Ideas for the Should-Be Investor Seth Klarman,Martin Whitman - Give The Gift Of Value - Holiday Gift Ideas For The Should-Be Investor
We are now in the heart of the holiday gift-buying season and finding that perfect gift for the investors on your list can be daunting. More...

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Seth Klarman's Low P/E Stocks Seth Klarman - Seth Klarman's Low P/E Stocks
The trademark of Seth Klarman’s investing style is low-priced stocks with a margin of safety. Therefore, it’s a good technique for investors to mine his portfolio for attractive investing ideas. A low P/E ratio often indicates an undervalued stock, and Klarman holds four companies trading at markedly low P/Es. More...

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Seth Klarman Buys Refiner with Temporary Setbacks Seth Klarman - Seth Klarman Buys Refiner With Temporary Setbacks
Seth Klarman in the third quarter purchased a classic Klarman stock – a company whose share price is struggling under the weight of major government regulation. The investor built his fortune at his Boston-based Baupost Group buying undervalued, low-risk equities and “cigar butts,” or stocks of declining businesses that might have a remaining bounce left in their stock price, and having utmost patience. In September, a dearth of suitable new investment opportunities led him to return some money to investors in order to keep his assets under management at his target $25 billion, according to Institutional Investor’s Alpha. More...

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Jean-Marie Eveillard Reflects on a Conversation with Seth Klarman
Source: ValueConferences More...

SETH KLARMAN, JEAN-MARIE EVEILLARD


Add Notes, Comments or Ask Questions

User Comments

Toddforthree
ReplyToddforthree - 3 weeks ago
Goforit
ReplyGoforit - 3 weeks ago
Why is your most recent performance data from 2001 - it's now 2014! How are we (and you) to rate Klarman when the most recent GuruFocus performance data is 13 years old? For all we know, his track record over the last 13 years could be 5% lower than the SP-500 index and yet he's listed as a Guru.
Wsjalerts13
ReplyWsjalerts13 - 2 months ago
Rishardo - You are so smart
Rishardo
ReplyRishardo - 5 months ago
59% Tech weighting while the Nasdaq makes all time highs? This is going to end in tears.

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