Billionaire Seth Klarman blames low rates and 'capitalist excess' for his fund's languishing returns — and says we've only seen the 'tip of the overvaluation iceberg'

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Billionaire Seth Klarman blames low rates and 'capitalist excess' for his fund's languishing returns — and says we've only seen the 'tip of the overvaluation iceberg'
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The Boston-based fund, which manages roughly $30 billion, posted 'high single-digit gains' for 2019, blaming value stocks' extended slump and 'a few mistakes.'

This story requires our BI Prime membership. To read the full article,Billionaire Seth Klarman's annual letter to investors was wide-ranging, touching on topics including private equity's pile of unused money, Modern Monetary Theory, WeWork, and foreign policy in the Middle East.

He explicitly linked Neumann's $1.7 billion WeWork exit package as an "epitome of capitalist excess." Klarman is not only concerned about seemingly limitless money flying around the private sector; he called Modern Monetary Theory, an economic theory supported by people like"Running massive budget deficits in a period of strong economic growth puts the U.S. on the road to MMT and money printing without end, in service of a permanent prosperity that has always eluded mankind.

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