Value investor Seth Klarman, watched one of his long term holdings soar in value today as Syneron Medical (NASDAQ:ELOS) advanced over 20% after posting strong earnings. Klarman is Portfolio Manager of the investment partnership The Baupost Group and manages over $7 billion.
Baupost owns only a handful of stocks yet Syneron Medical has been a long term holding since 2006.
Syneron Medical reported surging international sales international sales that grew 20 percent to $35.3 million, while North American revenue climbed about 6 percent to $18.2 million.
As of December 31, 2010 Baupost owned 15,000,000 shares of ELOS and almost 5% of the entire company. Unfortunately for Baupost, Klarman trimmed his stake in ELOS in Q4 2010 by 596,235 shares.
Despite the recent surge in ELOS stock, it has still been a losing position for Baupost.
Klarman initiated holdings in Syneron Medical in 2006 with purchase prices between $19.61 and $29.94. On February 16, 2011, ELOS closed at $14.10.
Syneron Medical "develops and markets medical products based on its various technologies including its Electro-Optical Synergy (NASDAQ:ELOS) technology, which uses the synergy between electrical energy, including radiofrequency (RF) energy, and optical energy. The Company’s products focus on an array of non-invasive medical procedures." Google Finance