Seth Klarman

The Patient Value Investor

1982 - present

Capital preservation comes first. Demand a wide margin of safety on every investment. Be willing to hold large cash positions when bargains are scarce. Value investing works precisely because it is uncomfortable.

Investment Approach

1Absolute return focus - will hold 30-50% cash if nothing is cheap
2Seeks deep value with identifiable catalysts
3Prioritises downside protection over upside potential
4Calculates conservative intrinsic value using multiple methods

Selection Criteria

1Significant margin of safety vs conservative value estimate

2Multiple valuation approaches (NAV, earnings power, FCF)

3Identifiable catalyst for value realisation

4Strong balance sheet - limited downside risk

Criteria derived from Seth Klarman's published writings and investment principles.

Top 10 UK Equities - Seth Klarman Strategy

Ranked by Seth Klarman's margin-of-safety approach. Deep value with conservative intrinsic value estimates.

#	Ticker	Company	Sector	Mkt Cap	MoS	Basis	Score	Verdict
1	SAFE	Safestore Holdings PLC	Self Storage REITs	$1.4bn	52.0%	Tangible NAV	100.0	CANDIDATE – qualitative review required
2	UTG	Unite Group PLC	Multi-Family Residential REITs	$3.0bn	50.2%	Tangible NAV	99.6	CANDIDATE – qualitative review required
3	DLN	Derwent London PLC	Office REITs	$2.7bn	41.6%	Tangible NAV	99.3	CANDIDATE – qualitative review required
4	GPEG	Great Portland Estates PLC	Office REITs	$1.7bn	39.0%	Tangible NAV	98.9	CANDIDATE – qualitative review required
5	TW	Taylor Wimpey PLC	Homebuilding	$3.5bn	36.4%	Liquidation floor (NCAV)	98.6	CANDIDATE – qualitative review required
6	BYG	Big Yellow Group PLC	Self Storage REITs	$2.2bn	36.2%	Tangible NAV	98.2	CANDIDATE – qualitative review required
7	SHCS	Shaftesbury Capital PLC	Diversified REITs	$3.7bn	32.9%	Tangible NAV	97.8	CANDIDATE – qualitative review required
8	CLDN	Caledonia Investments PLC	NULL	$2.6bn	32.4%	NAV (discount)	97.5	CANDIDATE – qualitative review required
9	PSHP	Pershing Square Holdings Ltd	NULL	$8.8bn	31.7%	NAV (discount)	97.1	CANDIDATE – qualitative review required
10	ICGT	ICG Enterprise Trust PLC	NULL	$1.1bn	31.5%	NAV (discount)	96.8	CANDIDATE – qualitative review required

SAFE

Safestore Holdings PLC

100.0

Self Storage REITs|$1.4bn

MoS: 52.0%CANDIDATE – qualitative review required

UTG

Unite Group PLC

99.6

Multi-Family Residential REITs|$3.0bn

MoS: 50.2%CANDIDATE – qualitative review required

DLN

Derwent London PLC

99.3

Office REITs|$2.7bn

MoS: 41.6%CANDIDATE – qualitative review required

GPEG

Great Portland Estates PLC

98.9

Office REITs|$1.7bn

MoS: 39.0%CANDIDATE – qualitative review required

Taylor Wimpey PLC

98.6

Homebuilding|$3.5bn

MoS: 36.4%CANDIDATE – qualitative review required

BYG

Big Yellow Group PLC

98.2

Self Storage REITs|$2.2bn

MoS: 36.2%CANDIDATE – qualitative review required

SHCS

Shaftesbury Capital PLC

97.8

Diversified REITs|$3.7bn

MoS: 32.9%CANDIDATE – qualitative review required

CLDN

Caledonia Investments PLC

97.5

NULL|$2.6bn

MoS: 32.4%CANDIDATE – qualitative review required

PSHP

Pershing Square Holdings Ltd

97.1

NULL|$8.8bn

MoS: 31.7%CANDIDATE – qualitative review required

ICGT

ICG Enterprise Trust PLC

96.8

NULL|$1.1bn

MoS: 31.5%CANDIDATE – qualitative review required

Disclaimer

This page applies Seth Klarman's documented investment philosophy to UK-listed equities. Rankings and scores are illustrative and do not constitute investment advice. Past performance is not indicative of future results. Always conduct your own research before making investment decisions.

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