http://streetcapitalist.com/2008/11/10/seth-klarman-and-inflation-hedging/ Wisdom on such diverse topics as: spin-offs, merger arbitrage, post-bankruptcy equities, global macro commentary and short ideas. Thu, 11 Mar 2010 12:12:18 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://streetcapitalist.com/2008/11/10/seth-klarman-and-inflation-hedging/comment-page-1/#comment-1800 John Thu, 04 Dec 2008 11:08:07 +0000 http://streetcapitalist.com/?p=375#comment-1800 I would have a look at Linn Energy (LINE). Specifically their hedging policy (cap / floor), and the price these options are at versus the current oil price. Having said that, LINE is likely to small an inflation hedge compared to the size of Klarman's assets. Thus i wonder if he has constructed an inflation hedge via the yield curve and / or constructed it via optionality on an asset class that rises with inflation, albeit seems to be mispriced. e.g. grains are a proxy for energy / inflation. I would have a look at Linn Energy (LINE). Specifically their hedging policy (cap / floor), and the price these options are at versus the current oil price. Having said that, LINE is likely to small an inflation hedge compared to the size of Klarman’s assets. Thus i wonder if he has constructed an inflation hedge via the yield curve and / or constructed it via optionality on an asset class that rises with inflation, albeit seems to be mispriced. e.g. grains are a proxy for energy / inflation.

]]> http://streetcapitalist.com/2008/11/10/seth-klarman-and-inflation-hedging/comment-page-1/#comment-1574 Ethan Bloch Wed, 12 Nov 2008 01:31:19 +0000 http://streetcapitalist.com/?p=375#comment-1574 All the above I would assume. If you can find timber, oil, gas properties and or real estate for .50 cents on the dollar, and you've done ample research, who wouldn't make the purchase? All the above I would assume. If you can find timber, oil, gas properties and or real estate for .50 cents on the dollar, and you’ve done ample research, who wouldn’t make the purchase?

]]> http://streetcapitalist.com/2008/11/10/seth-klarman-and-inflation-hedging/comment-page-1/#comment-1571 PlanMaestro Tue, 11 Nov 2008 14:03:30 +0000 http://streetcapitalist.com/?p=375#comment-1571 TIPS should be excellent at current prices TIPS should be excellent at current prices

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