Catalysts are events ( macro or micro)that unlock market value in a company. For eg. earnings report, currency depreciation, change of management, new products or technology, global triggers, etc. Seth Klarman answers a very important question of whether to buy a stock after or before a catalyst triggers? He says as a value investor its not easy to buy on the upside and sell on the downside. Human emotions always acts as an obstruction. So buying before a catalyst triggers is a good idea.
Also larger the size of the fund, it becomes essential to buy before the trigger.😇