Baupost Co-Portfolio Manager Wagner to Start His Own Firm

Herb Wagner, the Baupost Group LLC executive appointed as Seth Klarman’s co-portfolio manager two years ago, will leave the firm at the end of 2012 to start his own investment company, according to a letter sent to the hedge fund’s clients yesterday.

Wagner, who has worked at Baupost for 13 years, plans to manage his own wealth initially and eventually take in money from outsiders, according to the letter, portions of which were obtained by Bloomberg News.