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the k<strong>in</strong>ds <strong>of</strong> people who embrace FUD,or who like to close the bl<strong>in</strong>ds to their<strong>of</strong>fices, <strong>in</strong>sulate themselves from massop<strong>in</strong>ion and peer pressure, and focus <strong>in</strong>solitude. One <strong>of</strong> the few <strong>in</strong>vestors whomanaged to flourish dur<strong>in</strong>g the crash <strong>of</strong>2008 was Seth Klarman, president <strong>of</strong> ahedge fund called the Baupost Group.Klarman is known for consistently outperform<strong>in</strong>gthe market while steadfastlyavoid<strong>in</strong>g risk, and for keep<strong>in</strong>g a significantpercentage <strong>of</strong> his assets <strong>in</strong> cash.In the two years s<strong>in</strong>ce the crash <strong>of</strong>2008, when most <strong>in</strong>vestors were flee<strong>in</strong>ghedge funds <strong>in</strong> droves, Klarman almostdoubled Baupost’s assets under managementto $22 billion.Klarman achieved this with an <strong>in</strong>vestmentstrategy based explicitly onFUD. “At Baupost, we are big fans <strong>of</strong>fear, and <strong>in</strong> <strong>in</strong>vest<strong>in</strong>g, it is clearly betterto be scared than sorry,” he once502/929

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