During his fireside chat at the Harvard Investment Conference on April 15, 2024, Seth Klarman shared his insights and strategies for investing in the post-COVID era.
Also see: Seth Klarman Defends Baupost’s Long-Term Strategy at Harvard Investment Conference
Klarman began by analyzing the impact of the post-COVID environment on the market. High interest rates have put significant strain on numerous private equity firms. Additionally, public companies with floating-rate debt have reported decreased profit margins.
We are currently observing both large and small companies struggling to refinance their debts. Simultaneously, governments are grappling with the increased burden of debt incurred during the COVID era.
Klarman noted that companies reliant on a roll-up strategy, which involves continuous acquisitions, have been unable to execute...
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