Comments on: Just What is Seth Klarman up to? It May not be What Optimists Believe

By: Investor Seth Klarman Raising Cash: The Coming Storm « The Shrewd Value Investor

Mon, 21 Nov 2011 15:32:04 +0000

[...] favorite conservative investor Seth Klarman is raising cash (http://amarginofsafety.com/2011/10/19/just-what-is-seth-klarman-up-to-it-may-not-be-what-optimists-b...) The last time he decided to raise cash was right before the 2008 market collapse. Seth believes we [...]

By: Jordan

Jordan — Mon, 24 Oct 2011 17:40:46 +0000

I totally agree with your analysis. Given Klarman’s investing philosophy and his contrarian nature, it would make perfect sense to begin raising capital from investor’s in anticipation of dislocated markets and undervalued securities. Not to mention, raising several billion in capital and having that fully available and standing ready for opportunities can’t be done overnight. And as you pointed out as well, just when you “need” capital is precisely the time when it is no longer available.

If the article is to be believed, I’m not sure why he would only raise capital from existing investors and totally shutout new investors? Obviously if he feels he can raise enough capital from the investor’s he already knows and has had a long relationship with, that is the most ideal as it prevents potential friction at a later date.

By: longshorttrader

longshorttrader — Mon, 24 Oct 2011 00:12:53 +0000

Great post…your attention to detail is well-noted.

I shared this post via twitter.

- Dan