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Capital Allocators – Inside the Institutional Investment Industry


Jul 17, 2023

Seth Klarman is a legendary value investor and CEO and Portfolio Manager of The Baupost Group, an investment firm founded in 1982 that manages $27 billion. Seth authored the very out-of-print Margin of Safety and edited the recently released 7th edition of Graham and Dodd’s value investing classic, Security Analysis.

Our conversation covers Seth’s early experience in business and investing, path to Baupost, timeless value investing principles and those that have changed over time. We discuss Baupost’s application of value investing across sourcing, diligence, portfolio construction, and risk management. We then turn to Seth’s thoughts illiquidity, international investing, the weird current environment, positioning portfolios for it, alignment with clients, succession at Baupost, and his updated perspectives on Securities Analysis and Margin of Safety. We close discussing Seth’s personal investments in the Boston Red Sox, horse racing, and philanthropy.
Seth generally stays away from the public eye, so I was particularly grateful to share this conversation some twenty-five years after we first met.

For full show notes, visit the episode webpage here.

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