Though the actual Baupost 2024 letter is private, its likely contents can be inferred from Seth Klarman’s decades of writings and recent market conditions. Entering 2024, Baupost reportedly held over $12 billion in cash equivalents — a staggering sum for a $30+ billion fund. The hypothetical letter would not apologize for this. Instead, it would frame cash as “dry powder with an embedded call option on panic.”