The overdue migration of institutions and individuals out of money markets and longterm bond investments just started based on monthly equity mutual fund inflows.
Mr. Wang said long-term investments, including direct investments, private equity, infrastructure and real estate, now account for more than half of the fund's global portfolio, with the rest in public-market securities.
This decision to target customers that were focused on long-term results enabled Baupost to distinguish itself from private equity firms that would sell winning investments quickly in order to justify the high short-term performance they needed to raise more capital from investors.
Since weighing risk in equityinvestments is less attractive than putting money in safer bonds and long-term funds during economically unstable periods, it may be a less conservative investor who can play in these fields.