Seth Klarman

Seth Klarman

Last Update: 02-13-2015

Number of Stocks: 27
Number of New Stocks: 4

Total Value: $5,091 Mil
Q/Q Turnover: 19%

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

Seth Klarman Watch

  • Investment Reading: A Holistic Approach

    Over the past several months we have been asked what we might recommend for reading material in the field of investments. While we believe reading is an essential part of being a successful value investor, we think it’s only part of the total equation. We believe the old elementary school 3R’s (Reading, Writing, and Arithmetic) is the platform for constant study and self-improvement.


    Critical Thinking Is the Foundation

      


  • Some Thoughts on Globetrotting

    Undoubtedly many value investors are worried about the current level of U.S market valuation. Great investors such as Seth Klarman (Trades, Portfolio) and Wally Weitz have publicly opined that it is getting harder to find values in the U.S. markets. The cash levels at many renowned value funds speak for this concern in general.


    I am not writing an article to discuss the current valuation level of the market. It would be foolish and arrogant of me to do so. However, I do want to bring up the topic of global value investing again because I think the merit of global value investing is vastly underappreciated but more importantly, it makes so much sense to fish in a cheaper pond.

      


  • Should You Buy EBay Post Recent Analyst Upgrade?

    Recently, Susquehanna analyst James Friedman upgraded his rating on eBay (EBAY) to buy from neutral. He also raised his stock price target to $75, which implies significant upside from the current levels. Friedman is bullish about Paypal's business prospects once it demerges from eBay.


    In addition to positive sell side commentary eBay has also seen a lot of interest from fund managers of late. Last quarter, Seth Klarman (Trades, Portfolio), Daniel Loeb (Trades, Portfolio), Larry Robbins (Trades, Portfolio), Leon Cooperman (Trades, Portfolio), NWQ Managers (Trades, Portfolio), Jana Partners (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio), Murray Stahl (Trades, Portfolio), RS Investment Management (Trades, Portfolio) and Louis Moore Bacon (Trades, Portfolio) increased their stake in the company.

      


  • Kyle Bass' New Buys

    Kyle Bass is the managing member and principal of Hayman Capital Management's general partner, formed in December 2005. Hayman Capital Management serves as the investment manager to the Hayman Capital Master Fund LP and Japan Macro Opportunities Master Fund LP.



    Kyle Bass (Trades, Portfolio) makes bold bets according to his view on macroeconomics. He made a fortune in 2007 by betting against sub-prime CDOs.

      


  • David Einhorn's Most Weighted Low PE Stocks

    David Einhorn (Trades, Portfolio) is president of Greenlight Capital (a value-oriented investment advisor). Through August 2006, Einhorn had achieved annual returns of 29% since starting Greenlight in May 1996.


    Einhorn believes an investment approach emphasizing intrinsic value will achieve consistent absolute investment returns and safeguard capital regardless of market conditions. He is a noted activist investor, taking positions in companies, and then pushing management to implement changes.

      


  • Newest Guru David Abrams Increases Stakes in MGI

    David Abrams (Trades, Portfolio) of Abrams Capital Management recently increased his stakes in his latest position Moneygram International Inc (MGI).


    Abrams founded his firm in 1999 utilizing the value investing strategies he learned from working at Seth Klarman (Trades, Portfolio)'s Baupost Group. Investing in the U.S. public equity market, as well as having fundamental analysts and doing in-house research has allowed the firm to continuously earn annual returns around 20%.

      


  • Things I Learned From An Asian Value Investor


    It was one of those days when I got bored and just decided to try my luck visiting an investment firm. Being somewhat young and ignorant, I decided to pay a visit to one of Singapore’s more renowned value investment firms.

      


  • Part Four: A Continuing Discussion on Intrinsic Value

    In a recent interview with Consuelo Mack of WealthTrack (link), Jean-Marie Eveillard of First Eagle Funds said something that I’ve heard many times before – and something I have a tough time understanding. I figured it’s about time that I put my thoughts on this topic in writing.


    When discussing the different types of value investors, Mr. Eveillard had this to say about Warren Buffett (Trades, Portfolio):

      


  • Seth Klarman Buys Stake in 3 Pharmaceutical Firms

    Seth Klarman (Trades, Portfolio) founded The Baupost Group in 1982 and has suffered only two losing years since then.


    The value investor is the author of the famed book “Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor.” Written in 1991, less than 5,000 copies of the book were printed and can sell for almost $2,500 today. Even Warren Buffett (Trades, Portfolio) is said to have a copy of the book on his desk.

      


  • How Good is Your Argument?


    “One of the best ways to get confidence in an idea is to find the best argument out there and see if there is a case that you haven’t considered or if there is something you don’t know. If what I’ve heard are the best arguments that can be made against being short Herbalife, then I want to be short more.”

      


  • Seth Klarman: Bullish on Energy and Biopharmaceutical/Pharmaceuticals

    Baupost Group the $28 billion hedge fund has shown through 13-F filing that it is bullish on biopharmaceutical and pharmaceuticals, and energy companies as well. The firm reported that its equity portfolio has a market value of nearly $5.9 billion for the fourth quarter. Throughout the firms history its has return on average 20% thanks to its president legendary value investor Seth Klarman (Trades, Portfolio). In the Baupost Group end of year letter to investors Seth klarman said that the firm has identified opportunities in the energy after the crashing of crude oil prices.


      


  • Seth Klarman Buys Oil Company and Semiconductor Company

    Legendary value investor Seth Klarman (Trades, Portfolio) purchased two new stocks, Bellatrix Exploration Ltd. (BXE) and SunEdison Semiconductor Ltd. (SEMI), on Jan. 31, according to GuruFocus Real Time Picks.


    Klarman’s $28.5 billion Baupost Group returned 8% last year, Bloomberg reported, its sixth consecutive year of gains. The value of Klarman’s stock portfolio totaled $5.7 billion at the end of the third quarter, with 27 positions.

      


  • Expectations, Price, and Fundamentals (Or Congressional Questions Gone Awry)

    I was watching a congressional hearing last week on climate change, and a congressman asked one of the scientists testifying, "but you have to admit if you took the 10 hottest days out of your analysis your thesis falls apart". The scientist replied, "Well, Congressman, I suppose if pigs could fly we could call them airplanes ... but they don't. As scientists we don't have the luxury of taking the 10 hottest days in recorded history off budget. They happened. They are real. And we simply can't deny they happened."


    However one feels about climate change the idea of removing data from a model made me think of how we assess companies at Nintai. Do we – out a desire to find the next 10-bagger – alter or remove data about expectations and price that give us inconvenient results? In an age where you can see an ad for Gorilla Trades asking, "Don't you wish your stock picks are HOT like mine?" or a headline from the Street.com that asked "Do Earnings Still Matter in this Volatile Market?" it's easy to see how investors might feel required to fudge things a little bit.

      


  • Seth Klarman Doubles Stake in Cheniere Energy Inc.

    Seth Klarman (Trades, Portfolio) has increased his stake in Cheniere Energy Inc. (LNG), a Houston-based energy company dealing in liquefied natural gas, making it his new largest holding, according to GuruFocus Real Time Picks.


    Klarman owns 24,807,230 shares of the company after increasing the position by 121.5% on Dec. 31, representing 10% of the company’s shares outstanding. The shares closed at $70.40 per share that day, after rising 66% for 2014. They closed on Monday at $68.48 per share.

      


  • The Necessary Cruelty of Seth Klarman

    Seth Klarman (Trades, Portfolio) is perhaps one of the most direct writers and teachers when laying out his thoughts and techniques on investing. I have become fascinated by the following extracts from Margin of Safety, which are both illustrating and to the point.


    The common thread among these quotes is the emphasis on emotional control, very much needed for successful investing. It is in avoiding both cognitive and behavioral errors that we may encounter an edge against the market. Just was Warren Buffett (Trades, Portfolio) once mentioned:

      


  • EBIX – Still a Bargain with at Least 25% Upside Potential

    The shares of insurance software provide EBIX (EBIX) jumped more than 30% to $21 a share in the last three trading days on large volumes. We believe that the stock is still undervalued and it has at least 25% upside potential.


    About 18 months ago, when Goldman Sachs (GS) called off its merger deal to the buy the company at $20 a share, the stock plummeted to $8. We wrote on June 21, 2013, EBIX is a deep bargain, announcing $100 million buyback. Since then the stock has gained 160%. It is now traded at 13 times of the distressed earnings of the company, far below the market average. If the stock is traded at its historical median P/E ratio of 16, the stock would be traded at $26. Please look at the chart below:

      


  • Protect the Crown Jewels: Buy with a Margin of Safety – Vonage Holdings Study

    The way most investors buy stock is no better than the strategy most use in playing craps in Las Vegas. Even if the stock market has averaged near 9% over the decades, the average investor performs much worse. As with every casino where the house is the real winner, securities firms usually come out of a crisis unscathed.Sahara Hotel and Casino


    On average, the investing public falls prey to speculative bubbles. It happened in the real estate market in 2006 and in internet technology stocks in 2000. This herd behavior is not a new phenomenon. It took place in the stock market leading up to the October 1929 crash and in Tulip Bulbs in 1637 when two Semper Augustus bulbs were exchanged for twelve acres of land. If we do not want to be the next prey of a stock market bubble, we must develop techniques that help us identify opportunity when securities are cheap and risk when they are expensive.

      


  • 10 Investment Rules From Legendary Investors

    1) Jeffrey Gundlach, DoubleLine


      


  • Seth Klarman Keeps Buying LNG, KERX, PBF And Keeps Selling THRX

    Seth Klarman (Trades, Portfolio) is an investor from America who founded the Baupost Group. The Baupost Goup is a private investment partnership and hedge fund. The Baupost Group has made over 20% annualized gains over the past three decades. Seth Klarman (Trades, Portfolio) is known for being the author of a book on value investing called Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor.


    Unlike many popular hedge fund managers, Klarman’s approach to investing is more conservative and unconventional. Seth Klarman (Trades, Portfolio)’s investment strategy is to identify value investments that have a built-in margin of safety. Klarman mainly invests in companies if he is certain that the investment will not lose much value. His investment style views not losing money just as important as making money.

      


  • Lessons We Have Learned

    Over the past 15 years, we’ve had the privilege of managing our investment partners’ portfolios. During that time we have made mistakes that ranged from mild to significant impact on the portfolio. In this week’s article I wanted to share some of these mistakes, the reasons we made them and how we’ve changed to decrease the chances of making such a mistake again.


    Before we get into the specific examples of mistakes we’ve made, it’s important to make the distinction between sins of omission versus sins of commission. In the words of Warren Buffett (Trades, Portfolio) one is a case of thumb sucking whereas the latter is a case of unforced errors. While neither leaves you with a warm feeling, we would much rather have the former than the latter in our investment performance.

      


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