As Baupost Waits For Market Uncertainty To Take Its Toll, Klarman”Spinoff” Off To Strong Start

Actively managed hedge funds have a performance problem, fund manager Seth Klarman noted in a letter to investors first reported by Andrew Ross Sorkin in The New York Times. With hedge fund managers severely trailing major stock indexes from 2010 to 2015, Klarman looks to a flood of assets under management as causation for underperformance. The future of hedge fund management, however, might be taking shape right now with a Klarman “cub,” Miguel Fidalgo's Triarii Capital, following in Baupost Group’s value-orientated, noncorrelated footsteps.

[klarman]

2016 Hedge Fund Letters

Seth Klarman: Hedge funds seem like a failed product

“To many, hedge...