Seth Klarman’s Baupost Group is planning to return a portion of its assets back to investors toward the end of the year.
Reuters reported that the Boston-based hedge fund firm is give an undisclosed amount back to clients, citing that smaller assets is easier to work with. This is the second time since Baupost’s inception in 1982 that the firm is giving money back.
Baupost is one of a slew of hedge fund firms, including Lone Pine Capital and Blue Ridge Capital, that have recently turned away new investors in an effort to maintain a certain asset level. Research from multiple sources has shown that smaller funds tend to deliver larger returns.
One of the largest hedge funds in the world, Baupost manages about $28 billion in assets.