Seth Klarman's Baupost Group recently underwent the largest personnel reduction in its 42-year history, dismissing approximately 19 percent of its investing team. This move, part of a strategic shift, affected 11 out of 59 investment staff members, with cuts equally distributed between the firm's real estate and equities units.

According to AdvisorHub, Baupost outlined its new strategy in a letter to investors, which focuses on narrowing its real estate and equities investments while increasing its involvement in distressed debt, special situations, event-driven equities, private investments, and capital solutions.

The real estate team will now concentrate on properties with troubled capital structures, distressed debt, or asset re-positionings, moving away from the firm's previous broad investment approach in the sector. On the equities side, Baupost decided it had too many analysts and has since exited some long-standing positions and initiated new ones.

AdvisorHub also reports that the reorganization follows Baupost's previous significant job cuts in late 2020 when the firm closed its London office and dismissed eight employees.

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