Insights into Baupost Group's Latest 13F Filing
Seth Klarman (Trades, Portfolio), the esteemed value investor and founder of The Baupost Group, has made notable adjustments to his investment portfolio in the second quarter of 2024. Known for his prudent investment philosophy and the author of the highly regarded book "Margin of Safety," Klarman holds a diverse range of assets from traditional stocks to more complex investments like distressed debt. His approach often involves holding significant cash reserves, emphasizing risk management over mere return metrics.
Summary of New Buys
Seth Klarman (Trades, Portfolio)'s recent acquisitions include five new stocks, highlighted by:
- Humana Inc (HUM, Financial), with 420,000 shares, making up 4.44% of the portfolio and valued at $156.93 million.
- Solventum Corp (SOLV, Financial), comprising 1,820,000 shares or 2.73% of the portfolio, valued at $96.24 million.
- WillScot Holdings Corp (WSC, Financial), with 2,470,000 shares, accounting for 2.63% of the portfolio and valued at $92.97 million.
Key Position Increases
Significant enhancements were made to existing holdings, including:
- CRH PLC (CRH, Financial), with an additional 1,517,059 shares, bringing the total to 4,226,602 shares. This represents a 55.99% increase in shares, impacting the portfolio by 3.22%, and valued at $316.91 million.
- WESCO International Inc (WCC, Financial), with an additional 597,276 shares, bringing the total to 803,000 shares. This adjustment marks a 290.33% increase in shares, valued at $127.29 million.
Summary of Sold Out Positions
Klarman has completely divested from several stocks, including:
- Warner Bros. Discovery Inc (WBD, Financial), selling all 3,713,930 shares, impacting the portfolio by -0.91%.
- Altice USA Inc (ATUS, Financial), liquidating all 4,774,615 shares, with a -0.35% portfolio impact.
Key Position Reductions
Reductions were also notable in several holdings:
- Fidelity National Information Services Inc (FIS, Financial), reduced by 2,069,715 shares, a -37.1% decrease, impacting the portfolio by -4.33%. The stock traded at an average price of $74.03 during the quarter, returning 3.86% over the past three months and 31.64% year-to-date.
- Liberty SiriusXM Group (LSXMK, Financial), reduced by 3,292,432 shares, a -75.67% decrease, impacting the portfolio by -2.75%. The stock traded at an average price of $23.78 during the quarter, with a -14.33% return over the past three months and -24.81% year-to-date.
Portfolio Overview
As of the second quarter of 2024, Seth Klarman (Trades, Portfolio)'s portfolio comprises 23 stocks. The top holdings include 21.39% in Liberty Global Ltd (LBTYK, Financial), 12.27% in Willis Towers Watson PLC (WTW, Financial), 8.98% in CRH PLC (CRH, Financial), 7.49% in Fidelity National Information Services Inc (FIS), and 6.27% in Clarivate PLC (CLVT, Financial). The investments are predominantly concentrated across eight industries: Communication Services, Technology, Healthcare, Financial Services, Basic Materials, Industrials, Consumer Defensive, and Consumer Cyclical.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
