New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Guru News and Commentaries
Guru News, Stock picks and commentaries
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
Seth Klarman Takes a Big Loss on HPQ
Posted by: matsandalex (IP Logged)
Date: November 14, 2012 10:36AM

Legendary value investor Seth Klarman probably regrets investing in Hewlett Packard (HPQ) over the last year.

Klarman first accumulated about 20 million shares at prices over $20 per share in third quarter 2011. He then proceeded to increase his holdings to 27 million shares as the price fell until the first quarter 2012.

However, in the recent 13F filings of Baupost, more than half of all HPQ shares were sold. The stock is currently trading at $13, making it a big loser for Baupost.

Most likely, Baupost has sold off the remaining 14 million shares since Sept. 30, 2012. The total losses may be over $200 million for the esteemed hedge fund.

Baupost also sold 80% of its huge stake in Microsoft (MSFT) last quarter. Perhaps Klarman is bearish on the state of the PC industry that is losing sales to smart phones.

HPQ was a classic value trap that Jim Chanos highlighted this year.



Guru Discussed: Seth Klarman: Current Portfolio, Stock Picks
Stocks Discussed: HPQ,
Rate this post:

Rating: 2.9/5 (12 votes)



Re Seth Klarman Takes a Big Loss on HPQ
Posted by: JUDS1234567 (IP Logged)
Date: November 14, 2012 01:43PM

Indeed it seems Chanos won this round



Guru Discussed: Seth Klarman: Current Portfolio, Stock Picks
Stocks Discussed: HPQ,
Rate this post:

Rating: 0.0/5 (0 votes)





Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide