PREMIUM FEATURED STORIES

That Time Seth Klarman Made Millions From Enron

Seth Klarman wasn't afraid to invest in Enron when the time was right...

Enron is probably one of the most infamous names in finance. The rise and fall of this Wall Street darling took the world by surprise and dramatically changed the financial landscape. Even today, the fallout from the Enron scandal still impacts markets. Investors are terrified that the next Enron scandal could be just around the corner. If you’re looking for value stocks, and exclusive access to value-focused hedge fund managers, check out ValueWalk’s exclusive value newsletter, Hidden Value Stocks. However, Enron wasn't a disaster for everyone. One investor that made a huge amount of money for himself and his investors out of the collapse was Seth Klarman. Klarman and Enron Klarman has a history of investing in distressed debt. His hedge fund Baupost has a tremendous advantage in this part of the market because of its size and reputation. Klarman also generally keeps at least 20% of his portfolio and cash it at all times, giving him the flexibility he needs to be greedy when others are fearful. The other advantage Klarman has over the rest of Wall Street is time. Klarman is a long-term investor, and so are his investors so he can invest with a multi-decade horizon in securities other...
Tags

Rupert Hargreaves

Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. Prior to his investing and writing career, Rupert began his career as a proprietary currency trader.Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK.Rupert covers everything value investing for ValueWalk

Related Articles

Leave a Reply

Close