Value investor Seth Klarman, founder of $30 billion hedge fund The Baupost Group, says good investment ideas are harder to come by. "Mispricings are less common and less stark, and expected returns are often at the low end of acceptability." Baupost generated returns in the mid-single digits last year. Seth Klarman, founder of $30 billion hedge fund The Baupost Group, says it's harder than ever to find good investment ideas.