klarman-deep-value

name	klarman-deep-value
description	Use when evaluating Seth Klarman-style deep value and distressed opportunities: extreme margin of safety, forced sellers, liquidity discounts, complexity, downside protection, and patience.
invest	./invest.md

Klarman Deep Value

Use this skill to apply Seth Klarman-style deep value: buy assets at large discounts to conservative value when complexity, illiquidity, distress, or forced selling creates a margin of safety.

When To Use

• Deep value and distressed analysis
• Liquidation value, asset value, or hidden value review
• Forced-seller and illiquidity discount opportunities
• Downside-first portfolio review

Trigger phrases include Klarman, Baupost, margin of safety, deep value, distressed, liquidation value, and forced seller.

Process

1. Estimate conservative asset value and liquidation value.
2. Identify why the asset is mispriced: distress, complexity, illiquidity, neglect, forced selling.
3. Demand a large margin of safety.
4. Check balance sheet, legal structure, seniority, and liquidity.
5. Define catalyst and patience horizon.

Output Format

# Klarman View: [Asset]

## Verdict
Buy / Watchlist / Too Little Safety / Value Trap / Pass

## Conservative Value
## Margin Of Safety
## Mispricing Source
## Downside Protection
## Catalyst / Patience
## Invalidation

Guardrails

• Do not confuse cheap with safe.
• Do not ignore liquidity and legal seniority.
• Do not rely on optimistic appraisals.

Questflow Use

In Questflow, this skill is best used as a downside-first distressed and deep-value underwriting module.