Dean Morel

Seth Klarman's Best Ideas (for Now)

Digging deeper it appears I may be wrong as Klarman has been increasing his holding in FACT. 3,985,567 16.68% of shares as of 2009-02-09

FACT is selling for less than cash in bank, but being early stage biotech it is burning cash.

Seth Klarman's Best Ideas (for Now)

While just making stuff up may be fun, a little fact checking would lend a tad more credibility. Your slip on Security Analysis was poor form, but so is touting FACT as one of Klarman's best three ideas. FACT was spun-off from PDLI which Baupost held. So they got the shares foistered on them. As FACT is a development stage biotech I'd imagine Klarman can't wait to off load his shares.

Still if you look at the share chart it is following a traditional spun-off chart and may be worth a look at. When shares are spun-off most of the larger holders can't be bothered researching or even aren't permitted to hold, so they sell.