Mr. Klarman is smelling like a rose in Merck deal


Boston-base Baupost Group LLC, the hedge fund run by highly-respected value investor Seth Klarman, stands to reap a hefty $900M profit from its 53.3M share stake in Idenix Pharmaceuticals (IDIX +234%) in light of Merck's (MRK -0.1%) $3.85B offer ($24.50/share). This is a superb example of why he runs $27B in institutional money. Since 1983, his fund's average annual gain has been 17% versus the S&P 500's 11%.

Comments (6)
  • bbro
    , contributor
    Comments (11219) | Send Message
     
    Anybody know the return of Baupost over the last 3 years ?
    9 Jun 2014, 11:43 AM Reply Like
  • snoopy44
    , contributor
    Comments (1467) | Send Message
     
    bro:
    I have the following average annual returns for Baupost:

     

    5 yr return: 13.1%
    10 yr return: 12.8%

     

    In 2011 Klarman moved to an unusually high cash position in the fund citing overvaluation concerns and lack of buying opportunities. Hence, I believe the 3 yr avg return may be a bit lower than the ones reported above.

     

    S.
    9 Jun 2014, 01:38 PM Reply Like
  • bbro
    , contributor
    Comments (11219) | Send Message
     
    Thanks...do you have a link?
    9 Jun 2014, 02:13 PM Reply Like
  • Long Term Value
    , contributor
    Comments (194) | Send Message
     
    Brilliantly done!
    9 Jun 2014, 12:06 PM Reply Like
  • jpbald
    , contributor
    Comments (37) | Send Message
     
    Mr. Klarman scored big on this investment. Shame I didn't own any IDIX. Nice call Mr. Klarman on that stock pick.
    9 Jun 2014, 12:47 PM Reply Like
  • marc heilweil
    , contributor
    Comments (177) | Send Message
     
    He has scientists as investors. He is based in Cambridge. He must get good insights on pharma developments.
    9 Jun 2014, 01:55 PM Reply Like
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