Hedge Funds: Seth Klarman Emerges to Open Baupost Group

March 20, 2020 | Hedge Funds, Latest News, News

Value investor Seth Klarman has emerged from his bearish slumber. The head of Baupost Group announced he had spent $1.5 billion on new investments in recent weeks. Bloomberg reports that Klarman sees significant value due to fears about coronavirus and valuations.

The hedge fund manager also announced he is seeking more investor capital for his $29 billion fund.

Seth Klarman on Opportunities Ahead

While Baupost didn’t comment on the report, Baupost did suffer losses in the recent selloff. The report states that the fund lost as much as 10% to date. That said, Klarman has complained vocally for years that it was hard to find value in a stretched market. The firm’s cash position has dropped to 27% this year thanks to the deployment of capital. It was 31% at earlier in 2020.

Reports indicate that the firm has about 33% of its capital in stocks. Another 17% is currently in stressed credit investments.

The market has been in a freefall since February 21 when fears about the spread of coronavirus started to rattle investor sentiment. The outbreak started in China in December and failed to garner widespread attention until late January. Markets have been in a free fall with significant levels of forced selling by funds and negative momentum in the market.

Related: Hedge Funds: Ricky Sandler is Buying Stocks Despite Coronavirus

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.

Alt Insights

January 29, 2020

Venture Capital: The Kobe in “Bryant Stibel & Co”

Venture Capital: The Kobe in “Bryant Stibel & Co”

Latest Alternative Investment News

REITs: Big Insider Buying at Hudson Pacific Properties
April 1, 2020     News, Real Estate

Prices of Real Estate Investment Trusts and real estate operating companies plunged in March. Officers and directors of many REITs have stepped up to buy the shares the public has…

Hedge Funds: Steven Cohen Warns of “Tremors” After the Earthquake in the Markets
April 1, 2020     Latest News, News

Steven A. Cohen, the founder of Point72 Asset Management, warned investors to be cautious about the current market environment. The fund manager suggested that the markets haven’t fully recovered from…

Liquid Alternatives: American Century to Launch Active ETFs That Disclose Quarterly
April 1, 2020     Liquid Alternatives, News

Thursday, April 2, marks the beginning of a new era of active, non-transparent ETFs. In a brave step considering the current market conditions, American Century Investments will launch Thursday two…

Ride Sharing Startup Via Raises $400M @ Valuation of $2.25B
April 1, 2020     News, Venture Capital

Dial-a-shared-shuttle startup Via raised $400 million in a Series E funding round led by Exor (BIT: EXO) at a valuation of $2.25 billion. Exor is a holding company of the…

Scroll to Top