As of Q4 2024, Seth Klarman’s Baupost Group portfolio reveals a series of strategic adjustments across its top 10 holdings. Below is an overview of the major positions and notable changes from the previous quarter.

1.  WTW – Willis Towers Watson plc: 16.82%

2.  LBTYK – Liberty Global Ltd CL C: 15.15%

3.  GOOG – Alphabet Inc. CL C: 7.94%

4.  WCC – WESCO International Inc.: 7.59%

5.  CRH – CRH plc: 7.14%

6.  FERG – Ferguson Enterprises Inc.: 5.74%

7.  QSR – Restaurant Brands International: 5.53%

8.  CLVT – Clarivate Plc: 5.39%

9.  EXP – Eagle Materials Inc.: 4.60%

10.                DG – Dollar General: 4.57%

• Portfolio Allocation: 16.82%
• Recent Activity: Added 3.12%
• Shares Held: 1,836,748
• Reported Price: $313.24 per share
• Value at Reported Price: $575,343,000

Willis Towers Watson, a leading advisory and insurance brokerage firm, remains the top holding this quarter. The additional 3.12% stake indicates Klarman’s continued conviction in the company’s capacity to thrive in risk management and consulting—sectors that benefit from consistent corporate demand for insurance solutions and advisory services.

• Portfolio Allocation: 15.15%
• Recent Activity: Reduced 6.75%
• Shares Held: 39,453,843
• Reported Price: $13.14 per share
• Value at Reported Price: $518,423,000

Despite a notable reduction, Liberty Global Class C shares remain a significant holding. Klarman’s sustained interest underscores the telecom and broadband provider’s strategic position in multiple international markets. The reduction may suggest partial profit-taking or rebalancing, while still maintaining a meaningful stake in the company.

• Portfolio Allocation: 7.94%
• Recent Activity: Reduced 2.70%
• Shares Held: 1,425,988
• Reported Price: $190.44 per share
• Value at Reported Price: $271,565,000

Alphabet’s Class C shares continue to represent Baupost’s exposure to a dominant tech leader. Although Klarman trimmed this position slightly, Alphabet remains a core investment, reflecting confidence in the company’s digital advertising dominance, cloud computing initiatives, and AI advancements.

• Portfolio Allocation: 7.59%
• Recent Activity: Added 14.12%
• Shares Held: 1,435,671
• Reported Price: $180.96 per share
• Value at Reported Price: $259,799,000

WESCO International, a supplier of electrical and industrial components, saw a significant increase in shares. This suggests that Klarman views the company’s growth prospects favorably, particularly as demand for electrical equipment and supply chain solutions remains robust across various industries.

• Portfolio Allocation: 7.14%
• Recent Activity: Added 0.18%
• Shares Held: 2,641,402
• Reported Price: $92.52 per share
• Value at Reported Price: $244,383,000

CRH, a global building materials leader, experienced a small uptick in shares this quarter. Klarman’s slight addition points to ongoing confidence in the infrastructure and construction sectors, where CRH’s cement, aggregates, and other materials remain in steady demand.

• Portfolio Allocation: 5.74%
• Recent Activity: New Buy
• Shares Held: 1,132,000
• Reported Price: $173.57 per share
• Value at Reported Price: $196,481,000

A fresh addition to the portfolio, Ferguson provides plumbing and HVAC supplies, benefiting from ongoing construction and renovation trends. Klarman’s decision to initiate a position indicates optimism about Ferguson’s market share in the building products distribution sector.

• Portfolio Allocation: 5.53%
• Recent Activity: Added 10,155.53%
• Shares Held: 2,901,700
• Reported Price: $65.18 per share
• Value at Reported Price: $189,133,000

Klarman massively increased his stake in Restaurant Brands International, a global quick-service restaurant operator (including Burger King, Tim Hortons, and Popeyes). The substantial addition signals a strong belief in the rebound of consumer spending on dining out and the company’s potential for international expansion.

• Portfolio Allocation: 5.39%
• Recent Activity: Reduced 6.81%
• Shares Held: 36,279,205
• Reported Price: $5.08 per share
• Value at Reported Price: $184,298,000

Clarivate remains an important data and analytics holding despite a noticeable reduction. The company offers research and intellectual property services across industries like pharmaceuticals and academia. Klarman’s trim might reflect caution or a shift of capital to higher-conviction positions.

• Portfolio Allocation: 4.60%
• Recent Activity: Added 27.57%
• Shares Held: 638,223
• Reported Price: $246.76 per share
• Value at Reported Price: $157,488,000

Eagle Materials, a producer of cement, gypsum, and other construction products, saw a sizable increase. This move aligns with Klarman’s broader investment in the building materials sector, suggesting he anticipates continued strength in infrastructure and housing-related demand.

• Portfolio Allocation: 4.57%
• Recent Activity: Reduced 10.55%
• Shares Held: 2,060,800
• Reported Price: $75.82 per share
• Value at Reported Price: $156,250,000

Dollar General remains Klarman’s key consumer staples holding, though it was trimmed this quarter. The discount retailer can offer defensive characteristics in uncertain economic times, yet the reduction could signal a reassessment of near-term consumer spending trends.

1.  Shifts in Core Holdings
Willis Towers Watson has taken the top spot, reflecting heightened conviction in insurance and advisory services. Meanwhile, Klarman trimmed positions in Liberty Global (Class C) and Alphabet, potentially reallocating capital to new or expanding opportunities like Ferguson and Restaurant Brands International.

2.  Infrastructure and Construction Focus
Significant increases in WESCO, CRH (albeit minor), and Eagle Materials—along with a new stake in Ferguson—point to continued confidence in sectors tied to building, renovation, and infrastructure projects.

3.  Selective Consumer Plays
A dramatic boost in Restaurant Brands International and the sustained (though reduced) position in Dollar General indicate Klarman’s nuanced approach to consumer sectors. He appears to favor companies that can weather economic cycles through broad customer appeal or strong global franchises.

4.  Moderate Adjustments in Data/Tech Holdings
Klarman reduced stakes in Alphabet and Clarivate, indicating a measured stance on certain tech or data-driven businesses. Nonetheless, both remain significant portfolio components, signaling ongoing confidence in long-term digital growth trends.

Seth Klarman’s Q4 2024 portfolio underscores a dynamic allocation strategy that balances insurance and advisory services (Willis Towers Watson), infrastructure/building materials (WESCO, CRH, Eagle Materials, Ferguson), and select consumer-focused plays (Restaurant Brands, Dollar General). The slight reductions in Liberty Global (Class C) and Alphabet suggest strategic capital reallocation, while the major addition to Restaurant Brands International reflects a strong bet on consumer demand. Overall, Klarman’s moves reveal a continued emphasis on value-oriented growth and defensive positioning, with a clear eye on sectors poised to benefit from both cyclical upswings and consistent consumer needs.

Disclaimer:
This analysis is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investing involves risks, including the potential loss of principal. Past performance is not indicative of future results. Investors should conduct their own research or consult a qualified financial advisor before making investment decisions.