Seth Klarman Interview at Endowment Management Seminar of the TIFF Education Foundation, July 2008, is available here. (pdf)
David. How often do you find mispriced
Seth. I would say we’re not really looking
for mispriced talent. I’m happy to pay full price, and
I’ve sometimes intentionally chosen over the years to
pay people more than absolutely necessary. I think in the
talent search for investment professionals, for example,
there’s a big gray area between the least you can get
away with and the most you could possibly justify;
and that might be many hundreds of percent different.
And frankly, it’s true for operational talent, too. I hate
turnover; I really value long-tenured people. So I’d
rather pay up for people that I might be able to attract to
make their entire careers at our firm rather than try to be
cheap about it and hire bargains but ultimately pay the
price for that in turnover or other things.