Please note this article is based on publicly available information, however ValueWalk just received Baupost's 2018 letter moments ago and will have exclusive coverage shortly. Seth Klarman is widely regarded as one of the best value investors the world has ever seen. Over the past few decades, his hedge fund, the Boston-based Baupost, has achieved annualized returns for investors in the region of 20%, sometimes with as much as 20% of assets under management in cash. There are two main pillars to Klarman's investment strategy.