Trade Like Seth Klarman

Updated from 7:59 a.m. EDT

Among the 20 most-viewed portfolios on Stockpickr.com is the Seth Klarman - Baupost Group portfolio, which reportedly has had annualized returns of about 20% per year since inception. It seems appropriate that this money manager is worth closer examination because of the recent market correction and since Seth Klarman has been quoted as saying: "The Baupost Group seeks situations triggered by urgent, panicked, or mindless selling."

Klarman started Baupost, with $27 million under management, shortly after graduating from Harvard with an MBA in 1982. He is now managing about $5 billion. As of August of 2006, Klarman has returned 6,133% net of fees since starting the fund. He is also author of the out-of-print book Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor.

Klarman's holdings include Horizon Lines(HRZ Quote), Borders Group(BGP Quote) and A.C. Moore(ACMR Quote).

For the rest of the article, including analysis on Klarman's holdings, please click here.