Baupost Group Seth Klarman

Klarman "Catching Knives" Experiences Rare Yearly Loss, Looks Forward

The year that was 2015 was odd for several reasons, Baupost's legendary value hedge fund manager Seth Klarman noted in a recent letter to investors reviewed by ValueWalk. For one, the hedge fund didn’t generate a profit, a historical oddity regardless of the market environment. But 2015 was clouded by an unusual haze, as if a dependent drug fed intravenously was about to be withdrawn from the system.

The hedge fund with among the highest win percentages takes a strike
The Baupost Group, the Boston-based $27 billion hedge fund that finds value not only in public stocks but also private deals that sometimes require financial heft, was down -6.7% in the publicly traded portfolio 2015, while up 2.4% in the hedge fund's private investment portfolio. This was only the third losing year in the hedge fund’s 33-year history, placing them near the statistical pinnacle of all hedge funds with a 90% yearly win percentage.


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