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PR Newswire
05-10-2017, 01:40 PM
Hedge fund manager some call the next Warren Buffett owns nearly $1 billion of Puerto Rico's bonds
By Tae Kim
October 4, 2017
Hedge fund manager some call the next Warren Buffett owns nearly $1 billion of Puerto Rico's bonds Hedge fund manager some call the next Warren Buffett owns nearly $1 billion of Puerto Rico's bonds
Seth Klarman, the value investing giant who draws comparisons to Warren Buffett, has a very large position in Puerto Rico's controversial debt.
Klarman's hedge fund, Baupost, owns $911 million of the island's bonds through Decagon Holdings entities, according to a July public court filing.
"The Baupost Group is a holder of COFINA bonds through the Decagon entities. Baupost regularly makes investments through subsidiary holding entities," Baupost spokeswoman Diana DeSocio wrote in an email.
COFINA stands for the Puerto Rico Sales Tax Financing Corp. that issues bonds.
The Intercept on Tuesday was first to report the hedge fund's large stake. It was previously known that Baupost had a holding in COFINA bonds, but the size was not.
Puerto Rico's bonds plunged Wednesday after President Donald Trump pledged to wipe out its debt in an interview with Fox News. The island's general obligation bonds fell to 36 cents on the dollar versus 56 cents on the dollar last month.
More details in https://www.cnbc.com/2017/10/04/hedge-fu...bonds.html
By Tae Kim
October 4, 2017
Hedge fund manager some call the next Warren Buffett owns nearly $1 billion of Puerto Rico's bonds Hedge fund manager some call the next Warren Buffett owns nearly $1 billion of Puerto Rico's bonds
Seth Klarman, the value investing giant who draws comparisons to Warren Buffett, has a very large position in Puerto Rico's controversial debt.
Klarman's hedge fund, Baupost, owns $911 million of the island's bonds through Decagon Holdings entities, according to a July public court filing.
"The Baupost Group is a holder of COFINA bonds through the Decagon entities. Baupost regularly makes investments through subsidiary holding entities," Baupost spokeswoman Diana DeSocio wrote in an email.
COFINA stands for the Puerto Rico Sales Tax Financing Corp. that issues bonds.
The Intercept on Tuesday was first to report the hedge fund's large stake. It was previously known that Baupost had a holding in COFINA bonds, but the size was not.
Puerto Rico's bonds plunged Wednesday after President Donald Trump pledged to wipe out its debt in an interview with Fox News. The island's general obligation bonds fell to 36 cents on the dollar versus 56 cents on the dollar last month.
More details in https://www.cnbc.com/2017/10/04/hedge-fu...bonds.html
Specuvestor: Asset - Business - Structure.