For those investing in hedge funds, timing their allocation on a drawdown has always been a difficult if even controversial topic among allocators. Tiiming the investment after the point at which a hedge fund has exhibited significant mean reversion has practical execution hurdles as well requiring nerves of steel. Hedge funds, too, have similar issues in investing after a market has experienced significant losses, as a recent Baupost letter to investors reviewed by ValueWalk illustrates. [klarman] The question that remains un-answered after Baupost’s reported negative year to date performance is: Did the potential king of finding value in drawdowns, the…
On This Page
- Baupost's Brian Spector addresses the “chutzpah” required to invest in an irrational stock market
- What's amazing about Baupost is how they delivered annualized returns in the teens with significant dry powder on the sidelines
- Did Baupost invest in the market, use that legendary "dry powder," during the September sell-off?
- Nailing the exact market bottom is celebrated but lucky, the real skill is consistently executing on a disciplined strategy
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