Can someone explain something to me? I am looking at certain hedge funds, and the amount that they report on their 13F for AUM is much lower than their actual AUM.
Abrams Capital: Real AUM ~8Bn, Reported 13F AUM ~1.3Bn
Why is this the case? Thanks for any help.
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The overly simplified answer is that not all securities show up on a 13F. A 13F mainly shows US long positions; no shorts, no other asset classes (debt for example), etc.
For a fund like Abrams that might have (read: definitely has) large positions in public / private debt, equities that aren't listed in the US, real estate, private equity, etc. those positions do not show up in a 13F which is why the AUM doesn't line up.
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