Baupost Group

One of the most well-known value hedge funds worldwide is likely Seth Klarman's Baupost Group. In 1982, $27 million in initial money was used to launch Baupost. During the first few decades of Baupost's existence, Klarman returned over 20% every year; but, since 2010, only twice has he been able to provide double-digit returns. Baupost generated low double-digit gains in 2021 and about 15% in return in 2013. Investors in Baupost made only 5% when Insider Monkey subscribers began to make money by the bucketload in 2020.

In the 1980s, 1990s, and early 2000s, investing was comparatively extremely simple. However, most of the major and famous hedge funds have been having problems delivering respectable returns. Seth Klarman's goal shifted from earning high returns to capital preservation after he became a billionaire. A stated 30% of Baupost's portfolio is cash. Of Baupost's $26 billion, that amounts to around $8 billion. In other words, investors in Baupost pay a 1.25% management fee to have Seth Klarman retain their money while earning virtually nothing. Just $100 million is paid to Klarman per year for managing cash.

Year of establishment: 1982

Founders: Seth Klarman, Howard H. Stevenson, Jordan Baruch, William J. Poorvu
Headquarters: Boston and London
Revenue: $46.1 million (2021)
AUM: $26.3 billion (2022)
Website: http://www.baupost.com/