Seth Klarman Cautions "False Sense Of Calm In The US"

Seth Klarman's Baupost Group was not able to translate the enthusiasm of equity markets into similar returns but the fund did well in Q1, according to Klarman's latest letter to investors. As is the custom with Baupost, detail of returns and investments are released some time later.

Just like last quarter, Baupost continues to benefit from the liquidation of Lehman Brothers Holdings Inc. (OTCMKTS:LEHMQ) debt. This time the fund boosted its cash balance by 2 percent of AUM through Lehman. Baupost is looking forward to more inflows from US and...