Seth Klarman: Leave Room To Average Down

Seth Klarman is considered to be one of the best value investors of all time. However, he’s not a value investor in the traditional Benjamin Graham sense. His approach is based on Graham’s idea of having a margin of safety when buying investments – buying at a discount to intrinsic value – but he’s not confined to public market investments. Klarman’s Boston-based hedge fund, Baupost, is an unconstrained hedge fund. It can invest wherever and in whatever it sees fit. That makes it all the more important the firm and its portfolio managers maintain a disciplined approach to investing and…