Like the majority of Baupost's investor correspondence over the years, Baupost's 1994 year-end letter contains some valuable insights. However, the year-end letter is difficult to get hold of in full, although ValueWalk has a copy and some analysis. The 1994 letter is also a gem and we recently saw a copy for the first time.
The market of 1994 has many parallels with today's market environment.
1994 saw a surprise rate hike by the Federal Reserve and the following panic hammered hedge funds, credit funds and foreign exchange...