Insights from Baupost Group's Latest 13F Filing for Q1 2024
Seth Klarman (Trades, Portfolio), the esteemed value investor and founder of The Baupost Group, has made notable changes to his investment portfolio in the first 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 distressed debts. His strategy often involves a patient approach, emphasizing risk management over mere return metrics. This recent filing sheds light on his latest strategic moves in the market.
Summary of New Buys
Seth Klarman (Trades, Portfolio)'s portfolio welcomed five new stocks in this quarter:
- Eagle Materials Inc (EXP, Financial) emerged as the top new addition with 262,000 shares, representing 2.01% of the portfolio, valued at $71.2 million.
- WESCO International Inc (WCC, Financial) followed with 205,724 shares, making up approximately 0.99% of the portfolio, worth $35.24 million.
- GDS Holdings Ltd (GDS, Financial) was also significant, with 2,600,000 shares valued at $17.29 million, accounting for 0.49% of the portfolio.
Key Position Increases
Noteworthy increases were made in several existing holdings:
- Clarivate PLC (CLVT, Financial) saw an addition of 5,098,402 shares, bringing the total to 30,598,402 shares. This adjustment significantly increased the share count by 19.99%, impacting the portfolio by 1.07%, with a total value of $227.35 million.
- Herbalife Ltd (HLF, Financial) also saw a substantial increase with an additional 565,124 shares, bringing the total to 2,244,923 shares, valued at $22.56 million.
Summary of Sold Out Positions
The first quarter also saw complete exits from several stocks:
- Tower Semiconductor Ltd (TSEM, Financial) was completely sold out with all 2,710,852 shares liquidated, impacting the portfolio by -1.8%.
- Liberty Live Group (LLYVA, Financial) also saw a complete exit with 1,899,547 shares sold, resulting in a -1.51% portfolio impact.
Key Position Reductions
Significant reductions were made in several key holdings:
- Liberty SiriusXM Group (LSXMK, Financial) faced a drastic cut with 10,500,000 shares sold, reducing the holding by -70.7% and impacting the portfolio by -6.59%. The stock's performance has been negative, with a -17.95% return over the past three months and -14.42% year-to-date.
- Warner Bros. Discovery Inc (WBD, Financial) saw a reduction of 21,521,164 shares, an -85.28% decrease, affecting the portfolio by -5.34%. The stock's average trading price was $9.64 during the quarter.
Portfolio Overview
As of the first quarter of 2024, Seth Klarman (Trades, Portfolio)'s investment portfolio comprised 21 stocks. The top holdings included 21.03% in Liberty Global Ltd (LBTYK, Financial), 12.69% in Alphabet Inc (GOOG, Financial), 12.06% in Willis Towers Watson PLC (WTW, Financial), 11.66% in Fidelity National Information Services Inc (FIS, Financial), and 7.66% in Viasat Inc (VSAT, Financial). The investments are predominantly concentrated in sectors such as Communication Services, Technology, Financial Services, Basic Materials, Healthcare, Industrials, and Consumer Defensive.
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.
