Seth Klarman is an American billionaire who founded the Baupost Group, a Boston-based
private investment partnership, and the author of a book on value investing titled Margin
of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor.
Early life and education Klarman grew up in a Jewish family in Baltimore,
where his father was a public health economist at Johns Hopkins University and his mother
taught high school English. Klarman is a graduate of Cornell University
and Harvard Business School where he was a Baker Scholar and was classmates with Jeffrey
Immelt, Steve Burke, Stephen Mandel and Jamie Dimon.
Career Before founding Baupost, Klarman worked for
Max Heine and Michael Price of the Mutual Shares fund. He founded the Baupost Group
in 1982, which managed USD 22 Billion as of 2010. Despite his unconventional strategies,
he has consistently achieved high returns. He is a very conservative investor, and often
holds a significant amounts of cash in his investment portfolios, sometimes in excess
of 50% of the total. He often makes unusual investments, buying unpopular assets while
they are undervalued, using complex derivatives, and buying put options. Klarman typically
keeps a low profile, rarely speaking in public or granting interviews. However, in 2006,
he spoke pessimistically about the stock market and warned of future inflation. He is sometimes
referred to as "the Warren Buffett of his generation"
In 1991, Klarman authored Margin of Safety, Risk Averse Investing Strategies for the Thoughtful
Investor, which since has become a value investing classic. Now out of print, Margin of Safety
has sold on Amazon for $1,200 and eBay for $2,000.
In 2014 Forbes listed Seth Klarman as one of the 25 Highest-Earning hedge fund managers
in 2013. His 2013 total earnings was $350 millions ranks him the 20th among the 25 top
earning hedge fund managers. Philanthropy and politics
Klarman started The Klarman Family Foundation which donates to medical causes, Jewish organizations,
and Israeli causes. Klarman is the chairman of Facing History and Ourselves which develops
classroom programs to combat anti-Semitism and bigotry. Klarman also is active with the
The Israel Project, a pro-Israel advocacy group that collects and provides information
on Israel for journalists. He gave the organization $4 million between 2008 and 2010.
Klarman also heavily donates to Republican groups and candidates. Klarman is a major
backer of political non-profits such as the Ending Spending Fund and the pro-same-sex
marriage American Unity Fund. Personal
Klarman is married to Beth Klarman. Klarman is the brother of Harvard Law Professor Michael
Klarman. Klarman is the key U.S. investor behind The
Times of Israel, an online English-language newspaper which reports on Israel, the region
and the Jewish world. References
^ a b "Klaravich Stables", National Thoroughbred Racing Association
^ Forbes: The World's Billionaires: Seth Klarman April 2014
^ http:archive.breederscup.com/bio.aspx?id=27293 ^ The Oracle of Boston; Seth Klarman. The
Economist July 7, 2012 ^ a b c d e Jewish Daily Forward: "The Softspoken
Man Behind Times of Israel - Famed Investor Seth Klarman Says Site Won't Pull Punches"
By Josh Nathan-Kazis February 29, 2012 ^ Forbes Israel: Jewish Billionaires - Profile
of Seth Klarman April 14, 2013 ^ a b "Herbert Klarman, 82, professor, health
economist", The Baltimore Sun, June 19, 1999. ^ Scott Cendrowski. "A hedge fund bets big
on a Canadian mega quarry". CNN Money. Retrieved 2012-02-15.
^ Fabrikant, Geraldine.. Manager Frets Over the Market, but Still Outdoes It. New York
Times, Investment section. Accessed on 10-25-2008. ^ Opportunities for Patient Investors, Financial
Analysts Journal, Volume 66, Number 5, Seth A. Klarman and Jason Zweig
^ Baupost's Klarman sees poor outlook for stocks Reuters, Aaron Pressman and Matthew
Lewis. May 18, 2010 ^ The Wharton Journal 1205
^ Brett Arends. "Klarman: Why Investing Is Like Chess". Wall Street Journal.
^ The Oracle of Boston, Economist ^ The $700 Used Book.. BusinessWeek, Personal
Finance section. Accessed 11-11-2008. ^ Vardi, Nathan, "The 25 Highest-Earning Hedge
Fund Managers And Traders", Forbes ^ Sullivan, Sean. "Who funded the super PAC
hitting Dem and GOP candidates? These three billionaires.". Washington Post. Retrieved
7 July 2014. ^ Confessore, Nicholas. "Pushing the G.O.P.
to Support Gay Rights". New York Times. Retrieved 7 July 2014.
^ http:blogs.timesofisrael.com ^ Nathan-Kazis, Josh. "The Softspoken Man
Behind Times of Israel". The Forward. Retrieved 17 March 2012.
Further reading [1] Notes from Seth Klarman's discussion at
the CFA Institute's 2010 Annual Conference - May 18, 2010
Klarman, Seth. Remarks at MIT. Website of Redfield, Blonsky & Co., LLC. Accessed 11-11-2008.
[2] Seth Klarman interview by Alpha [3] Excerpts from 2005 Baupost Group Letter
[4] Seth Klarman video conference at Ben Graham Center for Value Investing
[5] Seth Klarman featured in Outstanding Investor's Digest March 2009
[6] Seth Klarman guest lecture at Harvard's Psychology of Leadership course - May 1, 2006
External links "Manager Frets Over the Market, but Still
Outdoes It," New York Times, May 13, 2007 "How To Ride Seth Klarman's Coattails," Forbes,
February 25, 2010 "The Financial Life: Seth Klarman," Bloomberg
Business Week, June 17, 2010 [7]
Profile of Seth Klarman and Baupost Letters Hedge Fund Letters
Seth Klarman Latest News Hedge Journals