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…
Will Baupost Follow Its Own “North Star” Amid Challenging Quarter?
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.