Seth Klarman Books Huge Profits On PG&E Insurance Claims

Seth Klarman’s Baupost has built its reputation on buying assets cheaply. The firm has also gained a reputation for buying esoteric debt and assets at cents on the dollar, taking on trades other firms cannot follow or copy. Q2 2020 hedge fund letters, conferences and more Klarman’s decision to acquire the debt of bankrupt investment bank Lehman Brothers was one of his most well-known esoteric trades. After the bank declared bankruptcy, the bonds’ price fell below 10 cents on the dollar, but by 2018, recoveries had reached a little under 50 cents. Baupost, which had once allocated 20% of its…