Seth Klarman's Baupost Group is not your typical hedge fund firm. In fact, the group doesn't look much like a hedge fund at all: Baupost steers clear of leverage, holds an average of a third of its portfolio in cash and is heavily net long. It also deviates from the traditional 2-and-20 fee structure that most hedge funds impose, charging a 1 percent management fee. But this magic formula has helped Baupost to become one of the world's most successful long-term hedge fund firms. It has produced compounded returns of about…