Seth Klarman’s Baupost Group is planning to return about $4 billion to investors at the end of the year.
Institutional Investor reported that the Boston-based hedge fund firm made the decision after a series of discussions with clients on the firm’s quarterly webcasts, stemming from lack of investment opportunities.
This is the second time since Baupost’s inception in 1982 that the firm is returning money to investors.
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.
After the $4 billion liquidation, Baupost will be left with about $25 billion in assets under management.