Seth Klarman is an American billionaire and the CEO and portfolio manager at the Baupost Group, a Boston-based private hedge fund that he founded in 1982.
He started with investments of $27 million forty years ago and achieved 20% in annual returns.
Today, Baupost Group has $30 billion in assets under management, and Klarman has a personal net wealth of $1.5 billion.
Klarman attended Cornell University, where he graduated magna cum laude with a major in economics. He later earned his MBA from Harvard Business School.
JP Morgan CEO Jamie Dimon was one of his classmates.
Klarman is a known follower of Benjamin Graham’s value investing philosophy and likes to buy unpopular assets while they are undervalued.
He places a big emphasis on margin of safety and has authored a book of the same name – “Margin of Safety, Risk Averse Investing Strategies for the Thoughtful Investor”.
His book has become a cult classic among investors. Only 5,000 copies were printed when the book was published in 1991.
It originally sold for $25 due to its scarcity. Used copies are now priced at $700, with more pristine copies fetching up to $4,000.
In the last quarter, the Baupost Group started new positions in Lithia Motors, Fidelity National Information Services, and Enhabit.
The fund also significantly added to its positions in Warner Bros Discovery, Willis Towers Watson, SS&C Technologies, Micron Technology, and Gray Television.
The Baupost Group cut back on its positions in Google, Amazon, and Cullinan Oncology.
The table below shows the Baupost Group’s share positions as of 30 September 2022.
|Name||Value ($ million)||Portfolio Weight|
|Liberty Global Class C||$790||14.1%|
|Liberty SiriusXM Series C||$520||9.3%|
|Warner Bros Discovery||$334||5.9%|
|Liberty SiriusXM Series A||$292||5.2%|
|Willis Towers Watson||$258||4.6%|
|New Oriental Education & Technology||$184||3.3%|
|Encompass Health Corp||$133||2.4%|
|Liberty Global Class A||$112||2.0%|
|Fidelity National Information Services||$46||0.8%|
|Liberty Media Acquisition Corp||$31||0.6%|