Seth Klarman
The Oracle of Boston
Baupost Group
Seth Klarman is the anti-celebrity hedge fund manager. He doesn't do CNBC appearances. He doesn't tweet. He barely does interviews. His book 'Margin of Safety' has been out of print since 1991 and sells for $1,500+ on eBay because he refuses to reprint it. Yet Baupost Group, which he's run since 1982, has compounded at ~20% annually for 40+ years. His secret is extreme patience — Baupost regularly holds 30-50% of the portfolio in cash, waiting for opportunities that most managers would never have the discipline to wait for. When markets crash, Klarman has the cash to go shopping while everyone else is forced to sell. He's arguably the most disciplined investor alive.
“Margin of safety isn't just a concept — it's a way of life. Hold cash when nothing is cheap. Be greedy when others are fearful. The hardest thing in investing is doing nothing.”
2008-2009 — deployed $4B in cash during the financial crisis
Bought distressed assets at pennies on the dollar. Baupost returned 27% in 2009.
Persistent cash drag — holding 30-50% in cash during bull markets
Underperforms in strong bull markets. But preserves capital perfectly in downturns.
“The stock market is the story of cycles and of the human behavior that is responsible for overreactions in both directions.”
“Value investing is at its core the marriage of a contrarian streak and a calculator.”
“Investing is the intersection of economics and psychology.”
Born in New York City
Takes over Baupost Group at age 25 with $27M
Publishes 'Margin of Safety' — now worth $1,500+ per copy
Deploys massive cash reserves into distressed assets
Baupost reaches $30B AUM
| # | Position | Name | Shares | Value | % Port |
|---|---|---|---|---|---|
| 1 | AMZNSHARES | AMAZON COM INC | 3.7M | $892.3M | 16.5% |
| 2 | ELVSHARES | ELEVANCE HEALTH INC FORMERLY | 1.3M | $493.1M | 9.1% |
| 3 | QSRSHARES | RESTAURANT BRANDS INTL INC | 6.8M | $489.6M | 9.0% |
| 4 | GOOGSHARES | ALPHABET INC | 1.4M | $484.7M | 9.0% |
| 5 | FERGSHARES | FERGUSON ENTERPRISES INC | 1.5M | $344.3M | 6.4% |
| 6 | GPCSHARES | GENUINE PARTS CO | 2.8M | $332.3M | 6.1% |
| 7 | UNPSHARES | UNION PAC CORP | 1.2M | $322.4M | 6.0% |
| 8 | VSHARES | VISA INC | 701.4K | $240.6M | 4.4% |
| 9 | WCCSHARES | WESCO INTL INC | 662.9K | $229.0M | 4.2% |
| 10 | AONSHARES | AON PLC | 687.0K | $227.9M | 4.2% |
| 11 | TFXSHARES | TELEFLEX INCORPORATED | 1.4M | $178.6M | 3.3% |
| 12 | NCLHSHARES | NORWEGIAN CRUISE LINE HLDGS | 7.7M | $163.2M | 3.0% |
| 13 | MOHSHARES | MOLINA HEALTHCARE INC | 633.6K | $144.9M | 2.7% |
| 14 | CMESHARES | CME GROUP INC | 619.0K | $136.7M | 2.5% |
| 15 | HLFSHARES | HERBALIFE LTD | 9.3M | $121.8M | 2.2% |
| 16 | EXPSHARES | EAGLE MATLS INC | 530.8K | $119.4M | 2.2% |
| 17 | GDSSHARES | GDS HLDGS LTD | 3.8M | $113.2M | 2.1% |
| 18 | COLDSHARES | AMERICOLD REALTY TRUST INC | 6.8M | $107.4M | 2.0% |
| 19 | LBTYASHARES | LIBERTY GLOBAL LTD | 8.5M | $94.0M | 1.7% |
| 20 | AEROSHARES | GRUPO AEROMEXICO SAB DE CV | 4.9M | $87.8M | 1.6% |
| 21 | AXTASHARES | AXALTA COATING SYS LTD | 1.3M | $43.6M | 0.8% |
| 22 | DNOWSHARES | DNOW INC | 2.8M | $36.2M | 0.7% |
| 23 | 71531U102SHARES | PERSHING SQUARE INCCUSIP 71531U102 | 392.0K | $12.9M | 0.2% |
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