Seth Klarman

Seth Klarman

Last Update: 2014-02-13

Number of Stocks: 19
Number of New Stocks: 3

Total Value: $3,529 Mil
Q/Q Turnover: 7%

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

Seth Klarman Watch

  • Invest Like Benjamin Graham in Singapore Stocks

    Benjamin Graham is the father of value investing and his way of value investing was to search for net-net stocks, and construct a basket of them as his portfolio. His method of value investing is still being widely practiced by value investors such as Seth Klarman (Trades, Portfolio), Third Avenue Management (Trades, Portfolio), etc. In this blog post, I would like to refer to an article by CLSA to explore the idea of investing in Graham-like stocks in the Singapore stock market.


    They construct a stock screen that incorporates the attributes that Ben Graham looks for in a undervalued stocks and run the stock screen through all the SGX stocks to find stocks that fulfill it. The end result of this stock screen is the Ben Graham Number.
      



  • Two Seth Klarman Stocks in His Top-Weighted Tech Sector Reach Five-Year Highs

    Seth Klarman (Trades, Portfolio), a renowned value investor at the Baupost Group, has a dire forecast for markets. In his 2013 annual letter, he said that he sees a “Truman Show” market which is precarious even though it doesn’t look that bad. He names as positive factors: elevated but not extreme P/E ratios, shrinking deficits, mending consumer balance sheets, recovering U.S. housing, nearing energy independence, low bond yields and low interest rates.


    He also sees negative trends looming: the consequences of near-zero short-term interest rates, Fed tapering, sizable deficits propping up the consumer, and a market higher only three times in the past based on Robert Schiller’s cyclically adjusted P/E ratio – prior to the past three market crashes.

      


  • The Choice Of A Discount Rate: Excerpts From Seth Klarman's 'Margin Of Safety'

    “Ultimately investors must choose sides. One side – the wrong choice is a seemingly effortless path that offers the comfort of consensus.” – Seth Klarman (Trades, Portfolio)


    I was fortunate enough to obtain a copy of Seth Klarman (Trades, Portfolio)’s "Margin of Safety" at the end of last week and read through most of it in one sitting. I found a few chapters very informative and worth sharing with others that may not have a copy themselves or have not read the book.

      


  • Inflation Is Coming, Inflation Is Coming!!

    Most know about the famous story of Paul Revere, the colonial patriot that rode from Boston to warn that the British troops were advancing upon the cities. Revere was the son of a silversmith and eventually was successful after the war as a silversmith himself. He also built the first copper mill and designed the original Continental currency. Less known is that Revere was with two other men on that famous ride, Samuel Prescott and William Dawes, who seem to appear only as footnotes in history, and are left out of the famous poem of that historic journey.


    Revere was captured before he could reach Concord, while it was Samuel Prescott that was actually the one able to complete the journey to Concord and warn the colonists. It is most probable that Revere and his compatriots actually yelled either, “The soldiers are coming” or “The redcoats are coming.” They were all mostly British, so to yell "The British are coming” would have perplexed all that heard the cry.

      


  • Tocqueville Asset Management - A Matter of Odds: Not Everything That Is Suppose to Work, Works All the Time

    The recent and ongoing confrontation between Russia and Ukraine over Crimea, with its saber rattling and flurry of diplomatic activity, has uncovered a lot of confusion about the causes, motives, and ultimate outcome of this crisis, as well as its likely economic and financial consequences.


    I cannot predict any of this. I was, however, able to make one high-conviction forecast early on: The crisis would trigger a bubble in experts on Russia, Ukraine, and Crimea. Indeed, the cocktail circuit, which is where people with more opinions than ideas meet to exchange peremptory platitudes, was promptly inundated with a tsunami of ready-made experts in history, Central European affairs, and geopolitical strategy.

      


  • John Mauldin's Outside the Box - Seth Klarman: Investors Downplaying Risk 'Never Turns Out Well'

    Seth Klarman (Trades, Portfolio): Investors Downplaying Risk “Never Turns Out Well”


    John Mauldin

      


  • What You Need to Look At to Find Exceptional Returns

    Pope Brar is a money manager based on the West Coast who has spent a considerable amount of time analyzing the success (as well as the failure) of some of the greatest investors.


    Brar has carefully examined the records of such legendary investors as Warren Buffett (Trades, Portfolio), Seth Klarman (Trades, Portfolio) and others to see what they have done to achieve such success over such a long time in the equity market.

      


  • Seth Klarman on His Book 'Margin of Safety'



  • A Classic 1991 Interview with Seth Klarman



  • Seth Klarman Buys New Stock Kindred Biosciences, Cuts Stake in Enzon

    Seth Klarman (Trades, Portfolio) of the Boston-based Baupost Group, which trades sparingly, has purchased a new stock: Kindred Biosciences (KIN), according to GuruFocus Real Time Picks.


    The purchase consisted of 2.9 million outstanding shares, giving Klarman 17.93% interest in the company. The transaction occurred on Dec. 31, 2013, when the price closed at $11.17 per share.

      


  • Seth Klarman's Low P/E Stocks

    The trademark of Seth Klarman’s investing style is low-priced stocks with a margin of safety. Therefore, it’s a good technique for investors to mine his portfolio for attractive investing ideas. A low P/E ratio often indicates an undervalued stock, and Klarman holds four companies trading at markedly low P/Es.

    The Stocks  


  • Seth Klarman Buys Refiner with Temporary Setbacks

    Seth Klarman in the third quarter purchased a classic Klarman stock – a company whose share price is struggling under the weight of major government regulation. The investor built his fortune at his Boston-based Baupost Group buying undervalued, low-risk equities and “cigar butts,” or stocks of declining businesses that might have a remaining bounce left in their stock price, and having utmost patience. In September, a dearth of suitable new investment opportunities led him to return some money to investors in order to keep his assets under management at his target $25 billion, according to Institutional Investor’s Alpha.

    The New Buy: PBF Energy (PBF)  


  • Seth Klarman Buys Micron Technology, Theravance, PBF Energy, Sells BP, AIG, Yamana Gold

    Renowned value investor Seth Klarman just reported his third quarter portfolio. He runs a very concentrated portfolio, with top two positions account for more than 50% of the stocks he owns. Seth Klarman buys Micron Technology, Inc., Theravance, Inc., PBF Energy Inc, Idenix Pharmaceuticals, Inc., Chipmos Technologies Bermuda Ltd., Idenix Pharmaceuticals, Inc., sells BP PLC, American International Group Inc, Yamana Gold Inc, Central Pacific Financial Corporation, Kinross Gold Corporation, Ituran Location and Control, Ltd., Alliance One International Inc, Pretium Resources, Inc. during the 3-months ended 09/30/2013, according to the most recent filings of his investment company, The Baupost Group.

    As of 09/30/2013, The Baupost Group owns 20 stocks with a total value of $3.5 billion. These are the details of the buys and sells.  


  • Seth Klarman Finds Margin of Safety in Drab Miners

    As an anti-momentum investor, Seth Klarman, founder of the Boston-based Baupost Group and author of the coveted out-of-print investing treatise “Margin of Safety,” can be expected to do the polar opposite of the broader market. His primary objective of avoiding risk drives him to out-of-favor sectors, where he picks stocks with a substantial margin of safety and waits as long as necessary for them to appreciate. Klarman has said, “Money is made when the crop is planted and not when it’s harvested.”

    It is no wonder then that he was buying mining companies in the second quarter. The S&P Metals and Mining ETF (SPSIMM) has declined more than 11% year to date. The broader Materials sector was also the second-poorest performing group of the S&P 500 year to date, returning 15.6%, compared to 23.9% for the overall market.  


  • Seth Klarman’s Top Growth Stocks

    The portfolio of Seth Klarman, the legendary value investor and portfolio manager of The Baupost Group, currently lists 24 stocks, five of them new, and a total value of $4.02 billion. His quarter-over-quarter turnover is 22%.

    Here are Klarman’s three stocks with the highest average 10-year EBITDA growth rates, as of June 30, 2013:  


  • Finally. Proof that Ben Graham Knew How to Time the Market.

    Previously, I quickly went through a way to check the stock market value using net nets.

    A good question came up in the comment section.  


  • Behavioral Biases and Value Traps

    Value investing is a tricky blend of art and science. The science part is usually quantifiable with information obtained from annual reports, proxy statements, industry surveys and various other sources. The art part of value investing generally involves a decent and sometimes even an uncomfortable amount of judgment to be made about the future of the business involved. The best value investors are as much great scientists as they are fabulous artists. However, even the best of the best fall into value traps. Just think about Warren Buffett's acquisition of Berkshire Hathaway and Seth Klarman's purchase of Hewlett Packard. Naturally, one may ask, if even the sharpest minds are ensnared by mirage-like value traps occasionally, are they just unavoidable?

    Unfortunately, the answer is yes. If you live close to the ocean, you will get wet one day. Value investors search for bargains in a sea of beaten-down stocks. Some are no brainers, some are value gems and some are value traps. The one common and defining characteristics of these stocks is cheapness, which is the reason why value investors are enthralled. Sadly, there are a variety of reasons why they are on sale, and it is not obvious how to differentiate between the legitimate ones and the twaddling. The only way to never get yourself into one of these situations is to shop somewhere else, but that would potentially lead us out of our circle of competence.  


  • Margin of Safety. Not Used Enough

    The 3 most important words in investing.

    Margin of Safety

      


  • Buying Maximum Pessimism: Not What You Might Think

    One of the most important investing maxims ever uttered came from Sir John Templeton when he told investors to at buy the point of maximum pessimism. He later followed that up by saying that investors should not ask what nation, sector or company had the best outlook but which one had the worst.

    That's where there was money to be made for long-term investors. This concept has been around since the Baron Rothschild said that the time to buy was when the blood was in the streets. Many pay lip service to such an idea, but very, very few people actually have the fortitude and discipline to buy at the point of maximum pessimism.  


  • Cutting Loose: Seth Klarman's Active Second Quarter Selling and Trimming

    Seth Klarman, the legendary value investor and portfolio manager of The Baupost Group, was actively trimming and selling in the second quarter of 2013. His current portfolio shows 24 stocks, five of them new, and a total value of $4.02 billion. His quarter-over-quarter turnover is 22%.

    Here are the details on Klarman’s three sell outs and nine reductions, as of June 30, 2013:  


Add Notes, Comments or Ask Questions

User Comments

Toddforthree
ReplyToddforthree - 3 weeks ago
Goforit
ReplyGoforit - 3 weeks ago
Why is your most recent performance data from 2001 - it's now 2014! How are we (and you) to rate Klarman when the most recent GuruFocus performance data is 13 years old? For all we know, his track record over the last 13 years could be 5% lower than the SP-500 index and yet he's listed as a Guru.
Wsjalerts13
ReplyWsjalerts13 - 2 months ago
Rishardo - You are so smart
Rishardo
ReplyRishardo - 4 months ago
59% Tech weighting while the Nasdaq makes all time highs? This is going to end in tears.



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