Seth Klarman's Baupost Hedge Fund Loses More Than $150 Million On Gold Miners

[dcollon]

http://www.forbes.com/sites/nathanvardi/2013/07/10/seth-klarmans-baupost-hedge-fund-loses-more-than-150-million-on-gold-miners/

 

[Yours Truly]

It's probably a very miniscule amount considering the entire portfolio's size

[G2]

Thanks for the informative article.

 

Are you involved in the junior gold miner space?

 

I've started to think about the construction of a portfolio of 20-25 junior gold miners that one could hold for 3+ years and always find it a useful reference point to see what some of the largest and more respected funds like Baupost and Weiss are targeting.

[dcollon]

G2,

 

I'm not involved with the space, but there is some good discussion in this thread http://www.cornerofberkshireandfairfax.ca/forum/general-discussion/gold-miners/msg111662/#msg111662.

 

I have a ton of respect for Mr. Klarman, but thought I should post the article since I like to read anything I can find about him and Baupost.  Yours Truly, you are absolutely right.  It's a small position/loss since the author stated that Baupost's aum is $28 bil (not sure if that is still right or not). 

 

 

[G2]

Thanks dcollon--appreciate the link.

[twacowfca]

He isn't a gold bug. He has described these as being a hedge, not likely to do well except in inflation.  In that event, the payoff is asymmetrical, much more than owning gold itself.  :)

[cayale]

Always possible that he's long miners and short gold, too.

[Liberty]

http://www.bloomberg.com/news/2013-08-14/paulson-cuts-spdr-gold-stake-53-as-soros-sells-out.html

 

Paulson sold half his GLD, probably causing part of the decline. Could be a contrary indicator, as his timing has been pretty bad since 2009...

[bmichaud]

Just in time for the gold/silver/miner market to put in a rock solid bottom!! Love it.