At the beginning of October, it was reported that Seth Klarman's hedge fund Baupost, had acquired just under $1 billion of Puerto Rican debt (COFINA bonds -- municipal bonds issued by an entity created by the Commonwealth of Puerto Rico in 2006 to securitize future sales tax receipts), a revelation that attracted some interesting responses, which prompted a discussion of the topic in the recent Baupost Q3 Letter, unusual for the secretive hedge fund (in our opinion).
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Baupost acquired the debt through an on-paper Delaware-based corporation named Decagon Holdings LLC, which at first...
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