Seth Klarman’s Baupost Warns About the Risks of Low Volatility

In the multistrategy firm’s second-quarter letter to clients, firm president Jim Mooney warns of how low volatility can influence risk-taking and, by extension, leverage in potentially negative ways.

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Seth Klarman, Baupost Group (photo credit: Daniel Acker/Bloomberg)

Like many hedge fund firms, the folks at Baupost Group are very concerned about the extremely low level of volatility in the markets.

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