Baupost 2012 Year End Letter Pdf

  1. Baupost 2012 Year End Letter Pdf Sample
  2. Baupost Investor Letter
  3. Baupost 2012 Year End Letter Pdf Example
  4. Baupost Seth Klarman Recent Letter
  5. Seth Klarman Letter Pdf
  6. Baupost 2012 Year End Letter Pdf Fillable
  7. Baupost 2012 Year End Letter Pdf Format

Late 90s-2001 was the 'death of value investing period'. Likely that he did quite well the following five years and lost less than the market in the GFC. Just saying, these letters don't give the full picture.

  • BAUPOST LIMITED PARTNERSHIPS 2012 YEAR END LETTER “In the end, more than freedom, they wanted security. They wanted a comfortable life, and they lost it all-security, comfort and freedom. When the Athenians finally wanted not to give to society but for society to give to them, when the freedom they wished for most was.
  • Baupost Year-End Letter Cliffs Notes: Klarman Channels Dalio, Interior Decorating, Hot Nerd Burns. Now That's What We Call An Investor Letter! Author: Jon Shazar Updated.
The Baupost Group
IndustryHedge fund
Founded1982; 38 years ago
FounderSeth Klarman (president)
HeadquartersBoston and London
Key people
Jim Mooney (managing director)
ProductsHedge funds
AUMUS$ 28.9 billion
(as of June 30, 2019)[1]
42 (2012)

The Baupost Group is a hedge fund[2] founded in 1982 by Harvard Professor William Poorvu and partners Howard Stevenson, Jordan Baruch and Isaac Auerbach. Seth Klarman, who was asked by Poorvu to help run the fund, remains at its head today.[3] Baupost Group's investment philosophy emphasizes risk management and is long-only.[4][5] The firm, one of the largest hedge funds in the world, is a value investing manager.[6][7] According to Bloomberg L.P., Baupost is ranked 4th in net gains since inception.[8]

Investment strategy[edit]


It was reported that the Baupost Group does not use leverage in its investments with the exception of real estate where for every one dollar invested the Baupost Group used one dollar of leverage.[9]

It was reported that Baupost CEO Seth Klarman explained in a speech to MIT students that investment research driven by emotion is risky and can lead to a bad investment.[10]


From its founding the firm's three private partnerships have generated an average annual return of 19%.[6][9]

Investment history[edit]

With the rise of distressed debt sales in Europe caused by the sovereign debt crisis Baupost Group in 2011 opened its first international office in London to take advantage of investment opportunities in European commercial property market, corporate debt trading at distressed valuations and structured products.[11]

Walnut Place[edit]

According to a Reuters article, which cites Bank of New York Mellon v. Walnut Place LLC et al.,[12] the Baupost Group is Walnut Place. Using a traditional hedge fund tool, legal challenges of distressed bond settlements, the Baupost Group is attempting to force Bank of America to increase its settlement of Reps & Warranties of Countrywide sub-prime bonds. If the settlement were to be increased The Baupost group stands to make gains on bonds that they bought at very low values. It is unclear why the Baupost Group did not use their real name in the suit.

Natural resource extraction in Melancthon, Ontario, Canada[edit]

In 2006 Baupost Group formed Highland Companies, a Nova Scotia-based corporation that began buying farmland in Melancthon Township, approximately 120 kilometres north of Toronto, Ontario, purportedly for the purpose of farming. Having amassed over 7,000 acres by early 2011, then being actively farmed by Highland Companies, the Company submitted an application for a 2,316-acre Amabel dolomite mega-quarry. The application has seen heated opposition, as opponents raise concerns about groundwater contamination, local heritage, food security concerns, as well as a host of ancillary issues such as truck traffic congestion, highway safety, noise and dust pollution.[13] In November 2012, Highland Companies withdrew the application in response to that concerted community opposition.[14]

Post financial crisis of 2007–2008[edit]

After the financial crisis of 2007–2008, Baupost Group sought to purchase insurance as a hedge against the value of money declining as a result of government intervention which was a risk researchers at the company were concerned about. To execute this, Baupost Group purchased options for five-year Treasury bonds that would become profitable if Treasury bonds dropped sharply.[6]


It was reported that in 2004, 42 employees worked at Baupost Group: 12 investment focused and 30 administrative.[3]


Baupost 2012 Year End Letter Pdf

Baupost Group's assets were $30 million in 1982, and $29.9 billion as of December 31, 2013.[7]


  • Boston (1982)
  • London (2011)[11]

Key people[edit]

Baupost letter 2020
  • Seth Klarman, founder and president
  • Jim Mooney, Managing Director[11]


  1. ^'The largest managers of hedge funds (P&I Sep 2019)' (Special Report Hedge Funds). United States: Pensions & Investments. Crain Communications Inc. 16 September 2019. Retrieved 15 October 2019.
  2. ^John Longo (20 March 2009). Hedge Fund Alpha: A Framework For Generating And Understanding Investment Performance. World Scientific. p. 294. ISBN978-981-4469-92-0. ...long-only hedge fund shop, Baupost Group...
  3. ^ abBruce C. N. Greenwald; Judd Kahn; Paul D. Sonkin; Michael van Biema (12 January 2004). Value Investing: From Graham to Buffett and Beyond. John Wiley and Sons. pp. 231–. ISBN978-0-471-46339-9. Retrieved 30 July 2011.
  4. ^Frank K. Martin (24 May 2011). A Decade of Delusions: From Speculative Contagion to the Great Recession. John Wiley and Sons. pp. 181–. ISBN978-1-118-07816-7. Retrieved 30 July 2011.
  5. ^Roger Lowenstein; Long-term Capital Management (Firm) (12 September 2000). When genius failed: the rise and fall of Long-Term Capital Management. Random House. pp. 97–. ISBN978-0-375-50317-7.
  6. ^ abcZweig, Jason (22 May 2010). 'Legendary Investor Is More Worried Than Ever'. The Wall Street Journal.
  7. ^ ab'2013 – Baupost Group To Get Substantially Richer With Lehman'. ValueWalk. Archived from the original on 2013-11-04.
  8. ^'Dalio Earned Clients $13.8 Billion to Lead Hedge Funds as Paulson Slumped'. Bloomberg.
  9. ^ abJanet Lowe (30 December 2010). The Triumph of Value Investing: Smart Money Tactics for the Postrecession Era. Penguin. ISBN978-1-59184-374-0. Retrieved 30 July 2011.
  10. ^David Gardner; Tom Gardner (26 January 2009). The Motley Fool Million Dollar Portfolio: How to Build and Grow a Panic-Proof Investment Portfolio. HarperCollins. pp. 18–. ISBN978-0-06-172003-1. Retrieved 30 July 2011.
  11. ^ abcKuo, Patricia (May 6, 2011). 'Klarman's Baupost to Set Up in London to Cash In on European Debt Crisis'. Bloomberg. Retrieved 31 July 2011.
  12. ^The case is Bank of New York Mellon v. Walnut Place LLC et al, 2nd U.S. Circuit Court of Appeals, No. 11-4571.
  13. ^'No mega quarry'. Retrieved 10 January 2012.
  14. ^'Coalition of farmers and urban foodies halts Ontario mega-quarry (Globe and Mail)'.

External links[edit]

Baupost 2012 Year End Letter Pdf Sample

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Baupost Letter. baupost was a public filing investment company at one point. those letters are in the SEC archive. Never knew that. has been fortunate enough to come across a collection of vintage Baupost Group investor letters with dates ranging from. Baupost Letter Excerpts. “Born Bulls” extremely low, leaving investors no choice but to buy stocks it doesn’t . from the mid lows. Yet, despite six.

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Klarman explained that he follows the investment philosophy of Graham and Dodd and prides himself on maintaining a handsome cash balance 33 percent on average.

Use this information at your bupost risk. While some of the investment specific information is obviously dated, the wisdom Klarman shares on how to evaluate markets is timeless. If you’re unfamiliar with Baupost shame on youhere’s a brief description extracted from their December letter: He comments that as the indirect result of the fiscal easing policies, U.

We respect your privacy no spam ever. Klarman also sees potential value in so-called unicorns, private companies with billion-dollar-plus valuations, that collapse on disappointment.

Baupost Investor Letter

Good news for value investors as the WSJ reports that Seth Klarman at Baupost is still finding value opportunities in firms being attacked by the likes of Amazon, saying:.

Save it to your desktop, read it on your tablet, or email to your colleagues.

In an attempt to anchor the institutions that failed in crisis, it seems the U. The managers will not indulge in following the herd but will focus on protecting the capital of investors.

Baupost Group’s Seth Klarman Sees ’50 Shades of Value’ in The Market

Baupost 2012 Year End Letter Pdf Example

For more articles like this, check out our recent articles here. Further, we prefer investments, when we can find them at attractive prices, that involve a catalyst for the realization of underlying value.

Never Miss A Story! Send me baulost third party offers Yes No. Tracking top hedge funds since On a brighter note, Klarman is optimistic about the U. At the same time there are several indicators that have fallen even lower than levels like, government credibility, labor participation and median household income. This is in line with thoughts of Warren Buffett who has also said that media scrutiny of investments can do more wrong than good.

Never Miss A Story! You can read the original letter at the WSJ here. The letter recounts the many big incidents that have moved markets in the last few years. This serves to reduce the volatility of our results and de-emphasizes market movements as the source of our investment returns. Currently the firm is wearing a risk-off approach and Klarman reiterates that the Baupost is sticking to bwupost traditional ways of investing.

Baupost Seth Klarman Recent Letter

Posted by market folly at 7: He also notes that despite of the volatility in U. Send me ocassional third party offers Yes No.

Seth Klarman Letter Pdf

Subscribe to ValueWalk Newsletter. If you’re looking for more recent market commentary from the value investor, we also posted up excerpts from Klarman’s letter.

Moreover the budget defect keeps mounting up without any foreseeable means of funding except for taking more money. We respect your privacy no spam ever. In his year-end letter, Klarman criticizes the hyperactivity of the governments these days and said that this new approach to moving markets and shotgun investing was not covered in his book.

Byron Wien’s Market Commentary: Good news for value investors as the WSJ reports that Seth Klarman at Baupost is still finding value opportunities in firms being attacked by the likes of Amazon, saying: Be sure to also check out more recent letters from prominent investors like Warren Buffett’s letter.

He cites companies like Amazon posing an existential threat to existing businesses.

Seth Klarman – Value Opportunities In Firms Being Attacked By The Likes Of Amazon

This philosophy is implemented with a bottom-up value investment strategy whereby we hold only those securities that are significantly undervalued, and hold cash when we cannot find better alternatives. Klarman argues that the Antifragile approach means that the market can be unpredictable but stil follows a business cycles, which are artificially masked when over-zealous governments get into action.

Baupost 2012 Year End Letter Pdf Fillable

Newer Post Older Post Home. The even bigger danger sign than the quantitative easing itself is the ease with which investors react to it and take it as a commonplace event.

Subscribe to ValueWalk Newsletter. Seth Klarman of Baupost Group is largely regarded as one of the best investors of all time. Follow Us On Twitter Tweets by marketfolly. Investof comments bzupost the mindset of the current leadership is blindly ignorant while the business letteer has also shied away from worrying about the naupost when Fed ceases easing, increases interest rates and governments start selling the trillions they have accumulated in securities and bonds.

As mentioned in an earlier post, Baupost profited in its holdings in Greek sovereign debt.

Seth Klarman, founder of the naupost fund, in his year end letter, commented on how the market has changed dramatically over the last few years. In the thin markets for such private companies, it may be possible for Baupost to step in on preferential terms when promising companies stumble, says the letter. How can value investors, who seek to buy stocks at buapost prices, prevail in a financial world dominated by market-matching index funds? Klarman in a copy of the letter reviewed by The Wall Street Journal.

Baupost 2012 Year End Letter Pdf Format

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