Links - 01/12/2023

“In general, in one particular company’s securities, every 2 years or so we have a 10% position. Most of the time, we have 3, and 5, and 6 percent positions as our most favorite ideas. We will take them higher when a cheap position becomes much, much better a bargain or when there’s a catalyst for the realization of underlying value…. We would not own a 10% position in a common stock that was just plain cheap unless we had a seat on the board and control, because too many bad things can happen…. I think when people make mistakes, it often is on both sides of diversification. Occasionally, new managers especially, that aren’t that experienced in the business, will have a 20% position or perhaps even two in one portfolio. And those two might even be correlated – [i.e.] same industry, [or] the same exact kind of bet in two different names. That’s absurdly concentrated; maybe not if you have enormous confidence and it’s your own money, but if you have clients, that’s just not a good idea. But 1% positions also are too small to take advantage of what are usually the relatively few great mispricings that you can find. When you find them, you do need to step in and take advantage.” —Seth Klarman [Source]

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Howard Marks On Debt Investing, Fed Rate Hikes | The World View | BQ Prime (video) [H/T Linc] (LINK)

GMO Asset Allocation Team: Deep Value Offers a Compelling Opportunity within U.S. Equities (LINK)

Bridgewater: An Update from Our CIOs: 2022 Was a Tightening Year; In 2023 We Will See Its Effects (LINK)

Terry Smith’s Annual Letter [H/T @mastersinvest] (LINK)

Yet Another Value Blog: The Offshore Inflection, Part #1 (LINK)