Yemen's Houthi rebels have claimed responsibility for the attacks, which created a huge fire at a processor essential to global energy supplies.Politicsread more
Oil prices are expected to jump as much as $10 per barrel after a coordinated drone strike hit Saudi Arabia's largest oil field, forcing the kingdom to cut its oil output in...Marketsread more
Trusii's hydrogen water machines were supposed to help users with their health problems, but customers claim the company is involved in a giant scam.Technologyread more
The decoupling of the world's two weightiest economies seems as inescapable as its extent and global impact remains incalculable.Politicsread more
The trucking industry is worth hundreds of billions of dollars per year. Uber is going after this market with Uber Freight, an online platform that matches truckers with...Technologyread more
BlackBerry has reinvented itself to become a leader in securing mobile communications and in embedded communications. Next year it plans to roll out new products. CEO John...Evolveread more
Trailers have become a cult phenomenon. Even short teasers that reveal little about the plot of the upcoming film are headline-worthy. Blogs and forums have become devoted...Entertainmentread more
Thanks to the performance of Beyond Meat, investors who focus on venture-backed tech IPOs have done well this year despite some notable disappointments.Technologyread more
Software company Intuit, maker of tax helper TurboTax, is in its eleventh year of stock gains and up 36% this year.Investingread more
CNBC did a deep dive through the most recent Wall Street research to find stocks with upside potential.Marketsread more
The benchmark 10-year Treasury note yield tested 1.5% in late August and early September, bouncing off that level and most recently trading around 1.8%. However, another...Marketsread more
Seth Klarman, the value investing giant who draws comparisons to Warren Buffett, is telling his clients it is in Puerto Rico's interest to pay its debt.
Klarman's hedge fund, Baupost, owned $911 million of the island's bonds through Decagon Holdings entities, according to a July public court filing. The bonds were issued by the Puerto Rico Sales Tax Financing Corp., which goes by the acronym COFINA.
"Baupost first purchased COFINA bonds in the secondary market in 2015, with our most recent purchases made in 2017 before Hurricane Maria hit Puerto Rico," Klarman wrote in an investor letter Wednesday obtained by CNBC.
"Our investment was premised on deep fundamental research both around the Commonwealth's ability to repay its obligations as well as a legal analysis regarding the priority and property rights of COFINA bonds relative to other debt issues with respect to valuable collateral," the letter said.
Last month the island was hit by Hurricane Maria, a Category 4 storm that left widespread devastation and wiped out electric power for most of the population. Puerto Rico currently has more than $70 billion in debt and is already in a type of bankruptcy status as it tries to negotiate with creditors.
There have been calls for debt forgiveness as Puerto Rico struggles to recover. President Donald Trump himself pledged to wipe out its debt in an interview with Fox News earlier this month. The island's general obligation bonds fell to 31 cents on the dollar Friday versus 56 cents on the dollar last month.
The hedge-fund billionaire pushed back on debt forgiveness talk.
"While the impulse of the advocacy groups to demand the debt be expunged may be well intentioned, it is impractical for several reasons," he wrote. "In the case of Puerto Rico, expunging the debt would almost certainly eliminate any ability the Commonwealth would have to borrow money in the future at reasonable rates, which will be critical to the island's rebuilding efforts."
Klarman also said one-third of the COFINA bonds are owned by Puerto Rican citizens and community banks on the island. "The elimination of Puerto Rico's debt would have a devastating effect on the savings of many Puerto Ricans," he wrote.
The investor admitted his firm acquired the island's debt through "special purpose vehicles" such as Decagon Holdings so competitors wouldn't find out his firm was buying the bonds, which "could have an adverse effect on our ability to trade."
Baupost did not respond to a request for comment on the letter. The firm has $30 billion of assets under management as of March 2017.
The hedge-fund manager has largely avoided controversy over his career and is often compared with Buffett for his disciplined investing philosophy and solid returns. Used copies of Klarman's 1991 "Margin of Safety" investment book still sell for nearly $700 online.