Hub hedge fund Baupost Group had its best year since 2009

Baupost Group, Boston’s largest hedge fund firm, with $26 billion under management, had investment returns averaging 15 percent in 2013, its best year since 2009, according to Institutional Investor’s Alpha report.

Baupost, run by Seth Klarman, returned $4 billion to customers last year, according to a person briefed on the matter. The firm kept a lot of its money in cash last year -- about 40 percent, according to the trade publication, even as the stock market surged. Baupost is known for seeking out unusual and overlooked investments.

Beth Healy can be reached at Beth.Healy@globe.com