Overview: Seth Klarman has been a conservative-leaning independent most of his life, but he was inspired to help the Democrats when Trump emerged. Known to some on Wall Street as “the next Warren Buffett,” Klarman has turned the money from his successful hedge fund into multi-million-dollar donations to liberals.
Location: Boston, MA
Total Donated (2016-2020): $10,908,200
Top Recipients: Priorities USA Action, House Majority PAC, Pacronym
Key Issues: Reducing the Deficit, National Defense, Education
Largest Donation to Date: $1.5 million to Pacronym
Profile: Klarman doesn’t grab national headlines the way some of his billionaire peers do, but around Wall Street, he’s known as “the next Warren Buffett.” After graduating from Cornell University and Harvard Business School, Klarman headed to Wall Street where he joined the newly formed Baupost Group L.L.C., of which he is now CEO and portfolio manager. He’s a political independent and former board member of the conservative American Enterprise Institute. Klarman’s philanthropy flows through his Klarman Family Foundation, which is based in Boston and supports a variety of programs in health, education and culture. He regularly gives to groups in the Boston area, particularly educational and cultural institutions like the Barr-Klarman Massachusetts Art Initiative.
Klarman’s politics tend to be more liberal on social issues, gay marriage and LGBTQ rights in particular, while his economic views are more conservative. He cites deficit reduction and strong national defense as his top issues. For years, Klarman was a reliable Republican donor—though records show he periodically gave to Democrats, too—but he changed course in 2016 when Trump emerged, telling press at the time that the future-president was a threat to democracy. Now, all his largest gifts have all gone to liberals, including $2 million to the House Majority PAC in 2018 to help Democrats retake the House, $1.5 million to the anti-Trump group Pacronym in 2019, and $1 million to Priorities USA Action. He’s made regular six-figure donations to the DNC and sent five-figure donations to Democratic Party offices in swing states ahead of the 2020 election. With Biden now in office, Klarman has indicated he’s hoping the administration will govern from the center, which he thinks Republicans have abandoned.
Ideological Vibe: Moderate centrist. Klarman’s history of bipartisan donating aligns with his stated affinity for centrism. He’s said people like democratic socialist Rep. Alexandria Ocasio-Cortez are encouraging because they bring new ideas, but overall, he dislikes what he sees as the extremes of both parties.
Hits and Misses: Klarman doesn’t make large bets on candidates for office, opting instead to donate most of his money to party PACs and funds.
Looking Forward: Klarman may find exactly what he’s looking for in the Biden administration. Early coverage of Biden’s cabinet picks indicates he’ll run a centrist government, already sidelining the more progressive voices of the Democratic Party. Assuming Biden keeps this course, Klarman may see the White House as an ally.
Relationships: Baupost Group L.L.C.—CEO; Klarman Family Foundation—Founder
Contact Information: N/A