Tough year for value investors - Bloomberg says that Seth Klarman's Baupost Group is down almost 7% through September. The firm we assume has most assets in cash, RE and debt (specifically Lehman debt) which are not reported on the form 13F - but some equity bets did not help. Energy has been crushed since the decline in oil prices and pharma/biotech etc. has been stung by Shkreligate and the latest 'controversy' regarding a hedge fund favorite - Valeant. Ackman, Einhorn, Loeb, Hawkins and many other famous event driven and value investors are also having a brutual year. If you look at the top returns for the year value is under-represented. Anyway, below is a partial excerpt from BBG.
Baupost Is Said To Decline 3.8% In September On Energy, Biotech by Sabrina Willmer, Bloomberg
- Klarman hedge fund down 6.6% for the year through September
- Brian Spector, partner in public investment team, to leave
You know it’s a bad year for value investors if Seth Klarman is losing money.
Klarman’s $27 billion Boston-based hedge fund declined about 3.8 percent in September, bringing its loss to about 6.6 percent for the year through the end of September, said a person with knowledge of the matter, who asked not to be named because the information is private. Baupost, which manages multiple partnerships that have varying returns, told investors in a letter that some holdings rebounded in October, said the person.
At this year's Sohn Investment Conference, Dan Sundheim, the founder and CIO of D1 Capital Partners, spoke with John Collison, the co-founder of Stripe. Q1 2021 hedge fund letters, conferences and more D1 manages $20 billion. Of this, $10 billion is invested in fast-growing private businesses such as Stripe. Stripe is currently valued at around Read More
Baupost was hurt by losses in energy and health-care stocks during the third quarter. The firm has tried to benefit from the decline in oil prices after years of monetary stimulus inflated prices for most assets. A bargain hunter and author of the 1991 book “The Margin of Safety,” Klarman has only suffered two losing years since the firm’s inception in 1982.
The firm told investors that Brian Spector, a partner on Baupost’s public investment team, will leave at the end of the year, according to the person. Spector, who worked at Baupost since 1998, will pursue education reform-focused philanthropy, the firm said.