Klarman: Baupost’s Core Principles Have Helped The Fund Outperform

When Baupost, the $30 billion Boston-based hedge fund now managed by Seth Klarman, was founded in 1982, it was launched with a core set of aims.

Q4 2021 hedge fund letters, conferences and more

Established by Harvard professor William Poorvu and a group of four other founding families, including Klarman, the group aimed to compound capital over the long run while avoiding the "wrenching downside volatility that can accompany a strategy of simply being long equities."

Klarman explains in his year-end 2021 letter to partners that while none of the founding investors believed they could accurately forecast the markets, they were reasonably confident that they could achieve positive absolute returns by...