Seth Klarman Q2 letter excerpts

Via ValueWalk:

Our team is continually improving at knowing where to look  for opportunity. Our analysts are doing some really creative work thinking about structural changes in some companies and industries, which has led to several new public equity investments. Pulling threads  on existing stock investments has led to a few others...I view it as a substantial positive that our  team has the background, talent, and drive to source opportunity in new areas of the markets, generally  with very favorable results. I am also pleased that this old dog (your Portfolio Manager) is still open (I’m always cautious but open) to learning a few new tricks. 

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With investment bankers and hedge fund executives canvassing Europe today to bet on recovery, you have the increasingly common circumstance of proliferating “opportunity funds,” absent only the investment opportunity. Some clients of hedge funds today are, in a sense, disintermediating themselves, funding new entities to bid higher for the same sort of assets their other, more disciplined managers are already bidding more judiciously for. The discipline problem in this case is not that of the legacy managers; it may just be that of the clients.