Seth Klarman - Baupost Group Portfolio
Seth Klarman - Baupost Group Q2 2024 Portfolio
Baupost Group, a hedge fund managed by Seth Klarman, disclosed 23 security holdings in their SEC 13F filing for the second quarter of 2024, with a total portfolio value of $3,530,834,000
As of Q2 2024, Seth Klarman’s portfolio through Baupost Group reveals strategic moves across various sectors, indicating his investment priorities and market outlook. Below is a detailed overview of his top holdings:
LBTYK – Liberty Global Ltd CL C
- Portfolio Allocation: 21.39%
- Recent Activity: No change reported.
- Shares Held: 42,311,011.
- Reported Price: $17.85 per share.
- Value at Reported Price: $755,252,000.
Liberty Global Ltd CL C remains the largest holding in Klarman’s portfolio, reflecting strong confidence in the company’s long-term prospects in the telecommunications and media sectors.
WTW – Willis Towers Watson plc
- Portfolio Allocation: 12.27%
- Recent Activity: Added 6.23%.
- Shares Held: 1,652,648.
- Reported Price: $262.14 per share.
- Value at Reported Price: $433,225,000.
The increase in shares of Willis Towers Watson shows Klarman’s growing confidence in the financial services and consulting sector, betting on its ability to navigate economic challenges and drive growth.
CRH – CRH plc
- Portfolio Allocation: 8.98%
- Recent Activity: Added 55.99%.
- Shares Held: 4,226,602.
- Reported Price: $74.98 per share.
- Value at Reported Price: $316,911,000.
The substantial addition to CRH plc indicates Klarman’s strong belief in the construction and building materials sector, likely anticipating robust demand in infrastructure development.
FIS – Fidelity National Information Services
- Portfolio Allocation: 7.49%
- Recent Activity: Reduced holdings by 37.10%.
- Shares Held: 3,509,254.
- Reported Price: $75.36 per share.
- Value at Reported Price: $264,457,000.
The significant reduction in Fidelity National Information Services shares suggests strategic rebalancing, possibly due to performance concerns or a shift in focus to other opportunities.
CLVT – Clarivate Plc
- Portfolio Allocation: 6.27%
- Recent Activity: Added 27.23%.
- Shares Held: 38,929,635.
- Reported Price: $5.69 per share.
- Value at Reported Price: $221,510,000.
The increased stake in Clarivate Plc reflects Klarman’s optimism about the company’s potential in providing data analytics and insights, crucial for driving business innovation.
GOOG – Alphabet Inc. CL C
- Portfolio Allocation: 5.56%
- Recent Activity: Reduced holdings by 63.84%.
- Shares Held: 1,069,588.
- Reported Price: $183.42 per share.
- Value at Reported Price: $196,184,000.
The substantial reduction in Alphabet shares suggests a strategic move to take profits or rebalance the portfolio, though the remaining position indicates continued confidence in the tech giant’s long-term growth.
VSAT – Viasat Inc.
- Portfolio Allocation: 4.95%
- Recent Activity: Reduced holdings by 8.46%.
- Shares Held: 13,759,364.
- Reported Price: $12.70 per share.
- Value at Reported Price: $174,744,000.
Viasat’s reduced position points to a cautious stance, possibly due to performance concerns or market dynamics affecting the communications sector.
HUM – Humana Inc.
- Portfolio Allocation: 4.44%
- Recent Activity: New Buy.
- Shares Held: 420,000.
- Reported Price: $373.65 per share.
- Value at Reported Price: $156,933,000.
The purchase of Humana shares signals confidence in the healthcare sector, particularly in managed care, where Humana is a leading player.
JAZZ – Jazz Pharmaceuticals plc
- Portfolio Allocation: 3.85%
- Recent Activity: Added 52.84%.
- Shares Held: 1,274,248.
- Reported Price: $106.73 per share.
- Value at Reported Price: $136,000,000.
The significant increase in Jazz Pharmaceuticals shares highlights Klarman’s bullish outlook on the biotechnology sector, focusing on innovative treatments that could drive future growth.
WCC – WESCO International Inc.
- Portfolio Allocation: 3.61%
- Recent Activity: Added 290.33%.
- Shares Held: 803,000.
- Reported Price: $158.52 per share.
- Value at Reported Price: $127,292,000.
The large addition to WESCO International reflects strong confidence in the industrial distribution sector, betting on its critical role in infrastructure and technology projects.
Analysis of Top Holdings:
1. Liberty Global Ltd CL C: The largest position, maintained, reflecting confidence in the long-term prospects of the telecommunications sector.
2. Willis Towers Watson plc: Increased position indicates growing confidence in financial services and consulting.
3. CRH plc: Significant addition reflects optimism about infrastructure and construction sectors.
4. Fidelity National Information Services: Large reduction suggests strategic rebalancing or shifting focus.
5. Clarivate Plc: Increased stake reflects confidence in the data analytics sector.
6. Alphabet Inc. CL C: Substantial reduction possibly for profit-taking or rebalancing, but still a key holding.
7. Viasat Inc.: Slight reduction suggests caution in the communications sector.
8. Humana Inc.: New position in healthcare, indicating a focus on managed care.
9. Jazz Pharmaceuticals plc: Increased stake suggests bullish outlook on biotechnology.
10. WESCO International Inc.: Large addition indicates strong confidence in industrial distribution.
Overall, Seth Klarman’s Q2 2024 portfolio reflects a balanced approach with strategic additions in sectors like healthcare, industrial distribution, and infrastructure, while making reductions in technology and financial services. The portfolio adjustments demonstrate a focus on both growth opportunities and cautious rebalancing to optimize long-term returns.
Who is Seth Klarman ?
1957:
Born on May 21, 1957, in New York City, USA.
1979:
Graduates from Cornell University with a degree in economics.
1979-1981:
Works as an analyst at the Mutual Shares fund.
1982:
Founding of Baupost Group: After working at several financial firms, Klarman founded Baupost Group with just $27 million in assets under management.
1991:
Publication of “Margin of Safety”: Seth Klarman authored a book titled “Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor.” The book is highly regarded among value investors and became a sought-after, rare collector’s item due to its limited print run.
1995:
Klarman Becomes chair of Facing History and Ourselves, an educational organization that promotes tolerance and understanding.
2008:
Klarman is selected as lead editor of the sixth edition of Security Analysis, a seminal work on value investing by Benjamin Graham and David Dodd.
2008 Financial Crisis:
During the 2008 financial crisis, Baupost Group performed exceptionally well, achieving positive returns while many other funds suffered significant losses.
2011:
Klarman receives the Alumni Achievement Award from Harvard Business School.
2020:
Klarman is elected to the American Academy of Arts and Sciences.
Interesting Facts
Klarman is known for his deep value investing approach, focusing on undervalued assets, distressed securities, and special situations.
He values privacy and operates with a conservative approach in managing Baupost Group.
Seth Klarman is actively involved in philanthropy, supporting various causes and organizations, including education, medical research, and social services.
Klarman is often compared to value investing legends such as Warren Buffett and Benjamin Graham.
Seth Klarman's Investing Principles
The single greatest edge an investor can have is a long-term orientation
Over the long run, the crowd is always wrong
Value investing requires a great deal of hard work, unusually strict discipline, and a long-term investment horizon
Once you adopt a value-investment strategy, any other investment behavior starts to seem like gambling
Investing is the intersection of economics and psychology
The stock market is the story of cycles and of the human behavior that is responsible for overreactions in both directions