Seth Klarman’s Baupost Group doubles assets during financial turmoil
|June 21st, 2010||
|In the past two years, as most hedge fund managers were engaged in damage control and trying to avoid liquidating funds, Seth Klarman managed to rise above the chaos and double his hedge fund’s assets. According to Bloomberg, Baupost Group LLC, which now manages $22 billion, didn’t change its strategies when the financial crisis hit the market, and Mr. Klarman’s tenacity seems to have paid off. In 2008, while many hedge funds took disastrous losses, Baupost managed to raise almost $4 billion by focusing on corporate bonds that would provide solid returns even in the face of a worsening economy.|
Today, Mr. Klarman says that he is wary of a decrease in the dollar’s value and a rise in inflation and interest rates, and he anticipates that stocks will yield poor returns for as long as ten years.
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