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The Baupost Group Review

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The Baupost Group

The Baupost Group is a Boston-based firm managing 11 hedge funds and more than $30.21 billion. There are 61 advisors on staff at Baupost, and there are no other clients or other types of funds on the books -- just hedge funds.

One important note about this group -- the firm’s website states that its funds are generally closed to new capital and aren’t looking for new investors. However, according to one media report, Baupost began "fundraising" in 2020, raising $1.8 billion in "new commitments."

financial advisor can help you find all the right investments for you and your family, regardless of your situation.

The Baupost Group Background

Baupost was sound in 1982. The CEO and principal owner, Seth Klarman, has been managing the investments of the firm’s clients since it was founded.

The firm, like many financial firms, is located in Boston. It only works with the hedge funds it manages, and does not have any separately managed accounts or other types of funds on its customer rolls.

The Baupost Group Investment Philosophy

Baupost’s SEC filings defined the firm as “an opportunistic, value-oriented, open mandate investment organization.” The firm looks for investments that meet at least one of a number of different qualifications, including those that:

  • Are currently out of favor, but with good prospects
  • Are seeling at a discount
  • Have catalysts in place for realizing underlying value
  • Are highly complex
  • Are somewhat or highly illiquid
  • Have inefficiencies including temporary supply/demand imbalances.

Investment choices include: equities, preferred stock, convertible securities, debt, distressed investments, illiquid investments, bank loans, loan origination, trade claims, sovereign debt, initial public offerings and short sales.

Largest Hedge Funds at The Baupost Group

Baupost Value Partners, L.P. - IV

AUM: $10,294,880,231
Minimum: $25 million
Beneficial Owners: 109

Baupost Limited Partnership 1983 C-1

AUM: $7,328,021,510
Minimum: $5 million
Beneficial Owners: 210

Baupost Limited Partnership 1983 A-1

AUM: $3,079,079,713
Minimum: $5 million
Beneficial Owners: 97

Baupost Value Partners, L.P. - II

AUM: $2,239,119,346
Minimum: $10 million
Beneficial Owners: 111

Baupost Value Partners, L.P. - I

AUM: $1,879,718,516
Minimum: $10 million
Beneficial Owners: 34

What to Watch Out For

Hedge funds are highly complex, loosely regulated investments that are only open to accredited investors. Furthermore, Baupost is currently not open to any new investors. 

There are two disclosures on the record for Baupost, both related to activities in Europe.

Becoming a Client of The Baupost Group

Currently, The Baupost Group is not open to new investors or clients.

Investing Tips

  • While The Baupost Group isn’t currently looking for new investors, there are still plenty of ways to get into the investing world. Finding the right financial advisor near you doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in just five minutes. If you’re ready to be matched with local advisors, get started now.
  • Planning is the most part of managing your portfolio. Use SmartAsset’s investment calculator to see how your investments could grow so you can start to make long-term plans.

How Long $1mm Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology We analyzed data on average expenditures for seniors, cost of living and investment returns to determine how many years of retirement a $1 million nest egg would cover in cities across America.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research