Santangel's Review

Commentary

Does Seth Klarman Want More Capital?

This article is light on facts and heavy on rumor, but if true, it is a very interesting data point. According to Institutional Investor, Seth Klarman will ask his existing LPs for additional capital. Klarman’s philosophy is to hold cash in the absence of bargains and as such his fund has had large cash balances over the years. In 2008 he took in new capital for the first time in years as he had opportunities to place that cash. One can assume that, if he is indeed looking to raise new money, he is either seeing a number of opportunities now or (maybe more likely) he is expecting a significant dislocation and wants to have the cash in place.