Seth Klarman Sees a ‘Bubble’ in Alternative Investments

The head of Baupost seems especially concerned about the large amount of money that has flowed into private markets.

Seth Klarman (Patrick T. Fallon/Bloomberg)

Seth Klarman

(Patrick T. Fallon/Bloomberg)

Baupost Group’s Seth Klarman has called the current state of alternative investments — especially private equity and venture capital — a “bubble” and raised questions about the valuations of the so-called unicorns in general, according to his fourth-quarter letter to investors.

The legendary value investor laid out a number of market concerns in the letter, including “extremely low interest rates,” low volatility, and rich valuations, among others.


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