Monday, June 14, 2010

Seth Klarman profiled in Bloomberg

Hedge fund manager and author, Seth Klarman (Baupost Group) was recently profiled in Bloomberg for his investing acumen, as well as for the enduring popularity of his 1991 book, Margin of Safety.

An excerpt from, "Klarman Tops Griffin as Investors Hunt for 'Margin of Safety'":  

"Seth Klarman almost doubled his hedge fund’s assets to $22 billion in the past two years as the industry shrank by sticking with the off-the-beaten-path investments he’s pursued since starting out in 1983.
Unlike John Paulson, who made $15 billion by betting against home mortgages, Klarman didn’t see one big trade that would profit as markets began to collapse. The founder of Baupost Group LLC focused on corporate bonds he calculated would yield solid returns even if the economy got worse.
“We didn’t have the degree of conviction Paulson had,” said Klarman, whose views are so closely watched by investors that his out-of-print book, “The Margin of Safety,” is offered on Amazon.com for more than $1,700. “We don’t deal in absolutes. We deal in probabilities,” he said in an interview at his Boston office..."
Check out the full piece above for more on Klarman's super-impressive investment returns (risk considered) and investing philosophy.

You can also find more about Klarman and his book, Margin of Safety, in our related posts section.

Related articles and posts:

1. Seth Klarman: Margin of Safety - Finance Trends.

2. Seth Klarman: Lessons from 2008 - Value Plays via Finance Trends.