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BAUPOST 2011 ANNUAL LETTER PDF

Dear Baupost Fund Shareholder,. We are pleased to report a gain . of all dividends. m arketfolly. Click here to read more hedge fund letters at MarketFolly. com. Seth Klarman Shareholder Letter March 4, at am by. I found some great excerpt from Seth Klarman’s Annual Letter (H/T to. During the financial crisis, Seth Klarman’s funds lost somewhere between 7% and . Letters – · My Favorite Quote from Baupost’s Annual Letter.

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This philosophy is implemented with a bottom-up value investment strategy whereby we hold only those securities that are significantly undervalued, and hold cash when we cannot find better alternatives.

At the not infrequent moments when there is literally no distressed debt worth purchasing, these competitors especially narrowly siloed ones often stray dangerously into origination of new debt instruments at par.

Collection of Seth Klarman’s Baupost Group Letters: MUST READ ~ market folly

First is Seth Klarman of the Baupost Group, who you will hear from later in the course. The claims agent websites capture the big cases but how bauost you find the small cases?

Results of its Aucti People would still find it tempting to day trade and perform technical analysis on stocks. Indeed, in situation after situation, it seems clear that fundamentals do not factor into their decision making at all.

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Whether or not this view is correct is up for debate. Bonds will have make wholes where issuer needs to pay you for the missed interest payments if they take you out early.

Market is there to serve you, not to guide you. According to a lecture given by Bruce Greenwald: I replied that there were indeed very capable competitors annkal this space, but that opportunities in distressed debt ebb and flow with economic cycles. I’ll echo the sentiment above, big fan, this was very enjoyable.

Seth Klarman Resource Page

But despite their invaluable teachings, Lether actually believes that their work is now somewhat out-of-date:. Notes from the Wharton Restructuring Conferen In his most recent letter to investors, Third Avenue Management’s Marty Whitman discusses this topic at length.

While I will not post or quote the entire letter, as a distressed debt investor, I found one set of paragraphs particularly relevant: All data, information and opinions are subject to change without notice. However, a margin of safety must be incorporated. Such diversions usually end badly, leaving these competitors wounded and mostly on the letteer when the distressed opportunity set once again becomes compelling.

Seth Klarman Shareholder Letter

For simplicity less say best case is a par 20111 I also think the insurance industry is one of the most misunderstood industries out there. About Me I have spent the majority of my career as a value investor. If it falls in half, do you reinvest dividends? We respect your privacy no spam ever. Subscribe to ValueWalk Newsletter. Be annuao to also check out more recent letters from prominent investors like Warren Buffett’s letter. On the flip side, a big win would be a pull to par and possible more depending if you get cheap equity i.

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If you’re unfamiliar with Baupost shame on youhere’s a brief description extracted from their December letter: Disclaimer The content provided within this website is property of MarketFolly. Short clips of market movements push the culture that investment decisions can be made in under a minute. Follow Us On Twitter Lettter by marketfolly.

Therefore, patterns or performance cannot be modelled with any kind of accuracy, or predictability. Leter this information at your own risk. Why, if distressed debt is such an attractive arena, didn’t many more funds sprout up lettet take advantage of the excess returns there? Klarman learnt his trade by reading the teachings of Graham and Dodd but over the years his strategy has changed.

For instance, Station is in the market now trying to clear a bond deal in the 60s.