- Hedge fund billionaire Seth Klarman recently outlined eight "permanent" changes that could result from the pandemic in a letter to investors, ranking them in order of most likely to unlikely.
- Some of the ideas are shared in general: people will be online more than ever and real estate will be challenged.
- Others are more fundamental changes in society, particularly in the United States: Klarman predicts a "reorganization" of priorities thanks to the deadly pandemic and an increase in organized labor.
- You can find more stories on the Business Insider homepage.
Seth Klarman is known for thinking beyond his portfolio.
The billionaire founder of the Baupost Group, which manages more than $ 30 billion in assets, is often waiting for his letter to investors to address end-of-year topics such as: as diverse as WeWork, income inequality and the global political scene.
This year, in the face of a global pandemic and massive protests against police brutality after the end of the second quarter, Klarman wrote a 16-page letter to investors in which he believes some of the changes after the pandemic are permanent – and of the most likely least likely.
Notes: Seth Klarman has a rabid following that accompanies him through thick and thin. Here's why fans of the public-shy billionaire are so obsessed.
The letter, which Business Insider has received a copy of, contains changes that many agree will be the new normal, and also touches on major, fundamental changes for US society as a whole. Baupost declined to comment beyond the letter.
Klarman and his Boston-based company were busy this year. For the first time in years, the company's flagship fund opened for new money, despite losing 8% in a volatile March.
The company did not announce the fund's performance in the letter, but Klarman wrote that the company was a net seller of shares in the second quarter despite the share rally. In 2019, the company posted "high single-digit numbers", according to the manager's letter to investors, although the stock market as a whole grew by 29%. Bloomberg originally reported on the letter.
Below are the "latest effects" of the virus that Klarman classified.