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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According to a lecture given by Bruce Greenwald: Hi – Love your blogs. In my opinion, it is better to wait until market sentiment is “blood in the street” to purchase anything.

Distressed Debt Investing: My Favorite Quote from Baupost’s Annual Letter

For instance, Station is in the market now trying to clear a bond deal in the 60s. Therefore, an investor should put money to work amidst the throes of a bear market, appreciating that things will likely get worse before they get annual. Could you elaborate on the statement “I also think the insurance industry is one of the most misunderstood industries out there.

But a second order effect that many people miss is alluded to in the Klarman quote above which I’ll repeat again: Bwupost you’re unfamiliar with Baupost shame on youhere’s a brief description extracted from their December letter: Do you take cash out of savings to buy more?

Like Buffett and more notably, Graham, Klarman takes the view that stocks are, at their most basic, a fractional interest in a business, not a chip in a casino. But those that practice it will often be rewarded when everyone else is running for cover. Further, we prefer investments, when we can find them at attractive prices, that involve a catalyst for the realization of underlying value.

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The fact of the matter is that buying a well followed, well covered large cap stock as an individual investor that may look cheap in an overbought market could produce good relative returns vaupost. At the not infrequent moments when there is literally no distressed debt worth purchasing, these competitors especially haupost siloed ones often stray dangerously into origination of new debt instruments at par. Readers know in the past we have covered Seth Klarman’s letter to investors numerous times here is one such post: Don’t be tempted to settle for marginal.

Disclaimer The content provided within this website is property of MarketFolly. Email hunter [at] distressed-debt-investing [dot] com. The business climate is more volatile now. Sign Up for a Free Trial Now.

As I’ve mentioned a few times on the blog leyter, this is the industry I am most confident in my ability to analyze with the deepest set of connections across the industry’s supply chain brokers, producers, adjusters as well as management teams. I read and do a quick analysis on every public company that files for bankruptcy. Historically, little volume transacts at the bottom or on the way back up, and competition from other buyers will be much greater when the markets settle down and the economy begins to recover.

It is a fantastic letter.

Seth Klarman Shareholder Letter 2010

In discussing Graham and Dodd: Follow Us On Twitter Tweets by marketfolly. All data, information and opinions are subject to change without notice. Insurance is a very interesting area and many of them appear to look baupst.

For the financial year ending October 27Baupost posted a return of If it falls in half, do you reinvest dividends? Let’s take a distressed bond trading at This points up the need to measure our results over an adequate period of time. Klarman attended Cornell University where he received a degree in economics, and later attended Harvard University where he earned an M.

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When he speaks, everyone stops to listen. First is Seth Klarman of the Baupost Group, who you will hear from later in the course. znnual

Seth Klarman Resource Page

How to Read a Credit Agreeement? In this environment, the chaos is so extreme, the panic selling so urgent, that there is almost no possibility that sellers are leetter on superior information.

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Below is a link the the letter http: Results of its Aucti Whether or not this view is correct is up for debate. However, a margin of safety must be incorporated. However, the developments in technology over the past 80 or so years since Benjamin Graham started teaching at the Columbia Business School, have seriously changed the way equity and debt markets operate.

Again the worst case is a total loss, but this is only 50 points.

Hunter, How do you run a search for all bankruptcy filings? If you’re looking for more recent market commentary from the value investor, we also posted up excerpts from Klarman’s letter. But still, valuable and rare commentary from the legendary investor. The corollary to an institutional investor reaching down for yield in Klarman’s quote above for an individual investor is buying a marginally cheap, marginally out of favor big cap.

A special emphasis, like we’ve seen in past years, was on the process, culture, and modus operandi of Baupost.