Who do you trust more? Temasek Holdings or Seth Klarman?
Seth Klarman, one of the world’s best value investor runs Baupost Fund which has an anuual compounded return of about 20% since 1982. Temasek Holdings said that they have a return of 17% since 1974.
Baupost Group uses no leverage and is closed to new investors. In fact,it holds a sizeable amount of cash and has returned funds back to investors due to lack of opportunities. Temasek Holdings is beginning to use leverage and its staff strength is larger than Baupost Fund. Christopher Balding has questioned Temasek Holdings returns whether it is more due to investment prowess or transfer of assets from state to Temasek Holdings.
Seth Klarman has warned of market rally induced by cheap money from central bankers.With the market reaching new heights, it is time to be cautious again.
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