Seth Klarman

Seth Klarman

Last Update: 11-13-2015

Number of Stocks: 40
Number of New Stocks: 8

Total Value: $5,971 Mil
Q/Q Turnover: 28%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Seth Klarman Watch

  • 'Alcoa's Transformation Is Paying Off' Presentation

    Seth Klarman,Joel Greenblatt,Paul Tudor Jones,Paul - 'Alcoa's Transformation Is Paying Off' Presentation

    GuruFocus recently published an article bringing to my attention that a number of well-known investors like Seth Klarman (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), and Paul Singer (Trades, Portfolio) have recently purchased shares of aluminum company Alcoa (NYSE:AA).

    I found the video below to be extremely helpful in giving a great overview of the company. It's a presentation titled "Alcoa's Transformation is Paying Off," given by CEO Klaus Kleinfeld. The video was published in May 2014. Readers should keep in mind that Alcoa's stock price has dropped from ~$13 per share at the time of the presentation to today's current price of $9.41 per share largely due to the drop in aluminum prices.


  • Seth Klarman Makes 3 Big Investments

    Seth Klarman - Seth Klarman Makes 3 Big Investments

    Guru investor Seth Klarman (Trades, Portfolio), who founded the Baupost Group in 1982, continues to run the hedge fund focusing on value investing. It shows how much Klarman respects Benjamin Graham's philosophies and principles in this interview conducted in 2011 by Charlie Rose.

    You can watch the interview here:


  • Insiders Buy Cheniere Energy, Sell Travelport, Sabre

    Mario Gabelli,Jim Simons,Carl Icahn,Seth Klarman,S - Insiders Buy Cheniere Energy, Sell Travelport, Sabre

    The All-In-One Screener can be used to find insider buys and sales over the last week by clicking on the Insiders tab and changing the settings for All Insider Buying/All Insider Selling to “$1,000,000+” and duration to "November 2015."

    According to the above filters, the following are the recent buys from company insiders in the past week.


  • Seth Klarman Sells Out of Stake in Alliance One

    Seth Klarman - Seth Klarman Sells Out Of Stake In Alliance One

    Influential investor Seth Klarman (Trades, Portfolio), founder of the $28.5 billion Baupost Group, has exited his position in tobacco company Alliance One International Inc. (NYSE:AOI) he reported in a filing dated Oct. 31, according to GuruFocus Real Time Picks.

    Klarman had held 638,364 shares of the company at last count in the second quarter, a 6.6% stake. Because it is a greater than 5% holding, it is unknown whether he sold it in the third quarter or in October. It previously occupied a 0.26% space in his concentrated portfolio of only 32 stocks, valued at $5.95 billion in total.


  • Why Seth Klarman Keeps Buying Keryx Biopharma

    Seth Klarman - Why Seth Klarman Keeps Buying Keryx Biopharma

    Seth Klarman (Trades, Portfolio) is a well-known value investment guru because of his excellent investment results over many years and his legendary out-of-print book called: "Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor."

    Amazon (AMZN) summarizes the book as follows (emphasis mine):


  • Seth Klarman Raises Position in Keryx Biopharmaceuticals

    Seth Klarman - Seth Klarman Raises Position In Keryx Biopharmaceuticals

    Seth Klarman (Trades, Portfolio) added to his existing stake in Keryx Biopharmaceuticals Inc. (NASDAQ:KERX), a New York City-based biopharmaceutical company, with the purchase of 16,224,598 shares for a price of $3.74 per share on Oct. 14.

    The purchased increased Klarman’s position by nearly 63%. He now holds 42,016,276 shares in the company. It is the second-largest stake in his portfolio by volume and the ninth-most valuable.


  • Seth Klarman on the Importance of a Margin of Safety

    Seth Klarman - Seth Klarman On The Importance Of A Margin Of Safety

    In his famous book "Margin of Safety," Seth Klarman (Trades, Portfolio) elaborates on why it is critical to have a margin of safety involved in every investment that we make. As we can recall, the concept was first introduced by who many consider the father of value investing, Benjamin Graham in "Security Analysis."

    "Should investors worry about the possibility that business value may decline? Absolutely. Should they do anything about it? There are three responses that might be effective. First, since investors cannot predict when values will rise and fall, valuation should always be performed conservatively, giving considerable weight to worst-case liquidation value as well as to other methods.


  • Seth Klarman on Buying at Uncertain Times

    Seth Klarman,Howrd marks - Seth Klarman On Buying At Uncertain Times

    As I read about Walmart's (NYSE:WMT) news on lower earnings guidance, it is fair to ask ourselves a couple of questions. Is the company's future doomed? What's next for Walmart? I think Seth Klarman (Trades, Portfolio)'s comments in "Margin of Safety" can answer these questions.

    "Some investors insist on trying to obtain perfect knowledge about their impending investments, researching companies until they think they know everything there is to know about them. They study the industry and the competition, contact former employees, industry consultants and analysts and become personally acquainted with top management. They analyze financial statements for the past decade and stock price trends for even longer. This diligence is admirable, but it has two shortcomings. First, no matter how much research is performed some information always remains elusive; investors have to learn to live with less than complete information. Second, even if an investor could know all the facts about an investment, he or she would not necessarily profit.


  • Seth Klarman Buys Pharmaceutical Company's Shares to Fund International Drug Launch

    Seth Klarman - Seth Klarman Buys Pharmaceutical Company's Shares To Fund International Drug Launch

    True to form, Seth Klarman (Trades, Portfolio) purchased a stake in a pharmaceutical company with a sinking stock but a new blockbuster drug ready to push out the door.

    Klarman’s The Baupost Group LLC held a total of 25,821,363 shares of Orexigen Therapeutics (NASDAQ:OREX), a 17.2% stake in the company, as of Sept. 30, it disclosed Oct. 9. Orexigen had previously announced on Sept. 10 that Baupost had acquired 20 million common shares along with 5 million warrants to purchase shares at a price of $3 per share of common stock and one-quarter of a warrant, for a total investment of $60 million. The warrants have an exercise price of $6 per share within five years.


  • Seth Klarman on Choosing Among Valuation Methods

    Seth Klarman,Charlie Munger - Seth Klarman On Choosing Among Valuation Methods

    "Margin of Safety" is one of the most straightforward books there is on investing. Seth Klarman (Trades, Portfolio)'s writing is direct, honest and sometimes a bit harsh, but always full with intelligence, common sense and the wisdom that he acquired over the years. In one of the chapters, Klarman describes several valuation methods and then poses the question (which many of us make to ourselves), which method should I choose to make my valuations?

    "How should investors choose among these several valuation methods? When is one clearly preferable to the others? When one method yields very different value from the others, which should be trusted?


  • Nintai Charitable Trust: Q3 Report

    Seth Klarman - Nintai Charitable Trust: Q3 Report

    This is the first public quarterly report of the Nintai Charitable Trust. The Trust is a legacy portfolio of Nintai Partners that ceased operations earlier in 2015. I personally manage the Trust Portfolio and serve as chief investment officer.

    The third quarter saw some dramatic movement leaving the markets down significantly during the quarter. The Standard & Poor's 500TR was down by 6.4%, the Morningstar Total U.S. Equity Index was down 7.5%, and the Nintai Proxy (70% Vanguard U.S. Equities Total Market Index, 15% Vanguard Global Equities Total Market Index, and 15% Cash) was down 8.8%. The Nintai Charitable Trust Portfolio was down 7.8% net all fees. Through Sept. 30 year to date, the S&P 500TR is down 6.4%, the Morningstar Total U.S. Equity Index is down 7.8%, and the Nintai Proxy is down 9.8%. The Nintai Charitable Trust Portfolio is up 2.1% YTD net all fees.


  • Five Super Reads to Help You Calmly Navigate Choppy Markets

    Seth Klarman - Five Super Reads To Help You Calmly Navigate Choppy Markets

    It’s been awhile, about three years since we’ve had any sort of market correction. Is it over?

    Who knows?


  • The Most Important Investing Risk

    Warren Buffett,George Soros,Seth Klarman,Carl Icah - The Most Important Investing Risk

    The stock market has averaged compound total returns of about 9% a year over the last 100+ years.

    This means a doubling of your money about every eight years.


  • Don’t Sweat the Coming Market Crash

    Charlie Munger,Seth Klarman - Don’t Sweat The Coming Market Crash

    Investors are understandably worried about a coming market drop. The last recession we had, in the dark days of 2009, almost left the U.S. on the dustheap of history. With markets now well into their seventh year of this abnormally long bull market, many of the structural problems that triggered the 2009 crisis unsolved, and the Chinese market scare only a month behind us, it's no wonder that investors are jittery.

    But a market drop is one thing, and investing quite another. A market drop does not necessarily spell disaster for an intelligent investor. If investors maintain a long-term perspective, they should be even less worried.


  • Designing the Common Stock Portion of Your Retirement Portfolio: Concentrated or Diversified Part 3

    Warren Buffett,Seth Klarman - Designing The Common Stock Portion Of Your Retirement Portfolio: Concentrated Or Diversified Part 3

    Designing the common stock portion of your retirement portfolio is very challenging. For starters, there is no absolutely perfect or even best way to design a stock portfolio. However, there are many effective strategies that have produced successful long-term results. The key to success is to find and implement the strategy that best fits your own unique goals, objectives, needs and most importantly  risk tolerances.

    There are many aspects of designing a common stock portfolio that need to be considered. The number of individual companies to include in your portfolio is a big one. In addition to the number of companies, how much weight you should put in each one. Should they be equally weighted? In other words, should you put the same percentage of your portfolio in each company? Or, does it make more sense to overweight some and underweight others? Moreover, should you own stocks from every sector or just the ones you like the best?


  • David Einhorn Continues to Add Micron Technology to His Position - Should You?

    David Einhorn,Seth Klarman, - David Einhorn Continues To Add Micron Technology To His Position - Should You?

    Let's take a look at Micron Technology Inc. (NASDAQ:MU), a $27.18 billion market cap company, which provides semiconductor solutions worldwide. The stock delivers a negative return of more than 52% on a year-to-date basis. This crash is alarming for me, but it seems that some hedge fund managers take the opposite direction. Perhaps the reason behind this bullish sentiment is the fact that the stock has outperformed the market in 2013 and 2014.


  • An Instant Classic – Seth Klarman Speaks to Bruce Greenwald's Columbia MBA Class

    Seth Klarman - An Instant Classic – Seth Klarman Speaks To Bruce Greenwald's Columbia MBA Class

    Seth Klarman (Trades, Portfolio) is harder to find than unicorn.

    He appears on the financial networks never.


  • Long-term Contrarian / Value Investing: Turning an Oxymoron Into an Opportunity – Tocqueville Asset Management

    In my observation, there is more than one discipline that can lead to investment success, and some of the proven ones are quite different from each other. The secret to investing successfully, therefore, is to adopt and follow a discipline that is in harmony with your personality.

    For my part, I feel in total harmony with the contrarian and value disciplines that have guided my investments for 40 years. At the same time, I also claim (and aim) to be a long-term investor. Yet, almost from the start of my career, I have had the somewhat uncomfortable feeling that, in practice, these claims may be contradictory.


  • Present-Value Analysis and the Difficulty of Forecasting Future Cash Flow

    In "Margin of Safety," Seth Klarman (Trades, Portfolio) touches upon Net Present Value and its use (or misuse) in valuation methods:

    "When future cash flows are reasonably predictable and an appropriate discount rate can be chosen, NPV analysis is one of the most accurate and precise methods of valuation. Unfortunately, future cash flows are usually uncertain, often highly so. Moreover, the choice of a discount rate can be somewhat arbitrary. These factors together typically make present-value analysis an imprecise and difficult task.


  • Seth Klarman Adds to Top 3 Energy Stocks

    Seth Klarman - Seth Klarman Adds To Top 3 Energy Stocks

    It makes sense that Seth Klarman (Trades, Portfolio), a deep value investor who prizes “margin of safety” in his investments, would pounce on the worst-hit sector of the S&P 500, energy, down almost 58% in the past year.

    Klarman has three energy stocks within his top seven holdings, each of which he increased by double-digit percentages in the second quarter, and he added one new energy stock. His No. 1 holding, Cheniere Energy Inc. (LNG), he also started last year. Overall, his concentrated equity portfolio of 32 stocks is 39.3% energy, sharply increased from 10.4% at the end of the second quarter last year.


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