News

The Kuala Lumpur Composite Index has just broken through the 1700.00 mark, now at 1700.42, up 0.53% on the day.

Glonghui, June 16 — Seth Klarman, the founder of hedge fund Baupost Group, known as the “Boston Buffett,” recently issued a stern warning about the current artificial intelligence (AI) investment craze, stating that market valuations are already showing clear signs of a bubble. His fund is not participating at all in investments in large language model companies such as OpenAI and Anthropic. Klarman has managed Baupost for 44 years, recording only five loss-making years in that time, and is known for his rigorous downside risk protection.He believes that the current technology market valuations are “extremely stretched,” with investors making excessively optimistic assumptions about the distant future in order to cater to the spirit of the new era. He made it clear, Baupost has not participated in any investments in trillion-parameter large language model companies, as these companies continue to burn cash heavily and face existential risks if their technology falls behind, which does not fit his definition of great enterprises. The market tends to simply categorize companies as “AI winners,” “AI losers,” and “AI agnostics,” with funds crazily flowing into the former. Baupost is currently focused on undervalued “AI agnostics”—companies that are not likely to be disrupted by AI or for which AI has almost no impact on their business. At the same time, the team is also reviewing certain credit assets that the market regards as “AI losers,” believing that there could be pricing dislocations and opportunities among them.

CBOT soybean and corn futures give back gains as both see improved ratings! Midwest weather is nearly “perfect”—how long will the downward trend continue?