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Seth Klarman Buys Rovi Corp, Novagold, Idenix Pharmaceuticals, Sells Hewlett-packard, Microsoft and Hess

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Renowned value investor Seth Klarman just reported his third quarter portfolio. He bought into one new position, Rovi Corp (ROVI), and added to his positions in Novagold Resources, Inc., Idenix Pharmaceuticals, Inc., Viasat Inc, Novacopper Inc, Idenix Pharmaceuticals, Inc. He sells Hewlett-packard Co, Microsoft Corporation, Hess Corp. Seth Klarman’s has generated great track record, according to many value investors. That made his fund one of the largest hedge funds in the world. He was said to invest in a lot of non-conventional investments like forest, land, real estate etc. In stock investing, he tend to buy beaten down companies that are under distress.

Buying cheap companies didn’t always work out for Seth Klarman. He bought into Targacept (TRGT) about a year ago, and the stock decline further. He eventually gave up on that bet.

As of 09/30/2012, The Baupost Group owns 21 stocks with a total value of $3.3 billion. These are the details of the buys and sells.

This is the portfolio chart of Seth Klarman. You can click on the legend of the chart to show/hide buys, sells, or holdings. Each ball on the chart represents a position in the portfolio. You can move your mouse on the balls to see the details of each position and click to see the details of all guru trades with this position.



For the details of Seth Klarman's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Seth+Klarman

This is the sector weightings of his portfolio:

Technology 36.2%
Health Care 17.2%
Consumer Services 17.2%
Oil & Gas 14.7%
Basic Materials 10%
Financials 3.2%
Consumer Goods 1.5%


These are the top 5 holdings of Seth Klarman

  1. BP PLC (BP) - 11,261,291 shares, 14.7% of the total portfolio. Shares reduced by 16.31%
  2. Oracle Corporation (ORCL) - 13,500,000 shares, 13.0% of the total portfolio. Shares reduced by 14.56%
  3. Viasat Inc (VSAT) - 10,750,000 shares, 12.3% of the total portfolio. Shares added by 1.05%
  4. Theravance, Inc. (THRX) - 13,553,800 shares, 10.8% of the total portfolio. Shares reduced by 6.87%
  5. News Corporation (NWSA) - 13,041,665 shares, 9.8% of the total portfolio. Shares reduced by 13.3%


New Purchase: Rovi Corp (ROVI)

Seth Klarman initiated holdings in Rovi Corp. His purchase prices were between $10.01 and $19.14, with an estimated average price of $15.24. The impact to his portfolio due to this purchase was 1.8%. His holdings were 4,134,974 shares as of 09/30/2012. Rovi Corp, formerly Macrovision Solutions Corporation, provides a set of solutions that enable businesses to protect, enable and distribute their digital goods to consumers and allows consumers the ability to discover and manage digital media across multiple channels. Rovi Corp has a market cap of $1.68 billion; its shares were traded at around $14.91 with a P/E ratio of 11.9 and P/S ratio of 2.4. Rovi Corp had an annual average earnings growth of 6.1% over the past 10 years. GuruFocus rated Rovi Corp the business predictability rank of 2.5-star.

Sold Out: Hess Corp (HES)

Seth Klarman sold out his holdings in Hess Corp. His sale prices were between $42.31 and $56.07, with an estimated average price of $48.79. Hess Corporation, is a global integrated energy company engaged in the exploration for and the production, purchase, transportation and sale of crude oil and natural gas, as well as the production and sale of refined petroleum products, electricity. Hess Corp has a market cap of $17.32 billion; its shares were traded at around $50.59 with a P/E ratio of 12 and P/S ratio of 0.5. The dividend yield of Hess Corp stocks is 0.8%. Hess Corp had an annual average earnings growth of 7.2% over the past 10 years.

Added: Novagold Resources, Inc. (NG)

Seth Klarman added to his holdings in Novagold Resources, Inc. by 31.25%. His purchase prices were between $3.69 and $6.19, with an estimated average price of $5.03. The impact to his portfolio due to this purchase was 0.86%. His holdings were 21,000,000 shares as of 09/30/2012. NovaGold Resources is a gold and copper company engaged in the exploration and development of mineral properties in Alaska and Western Canada. Novagold Resources, Inc. has a market cap of $1.31 billion; its shares were traded at around $4.49 with and P/S ratio of 3251.8. Novagold Resources, Inc. had an annual average earnings growth of 9.5% over the past 5 years.

Added: Idenix Pharmaceuticals, Inc. (IDIX)

Seth Klarman added to his holdings in Idenix Pharmaceuticals, Inc. by 20%. His purchase prices were between $4.39 and $11.06, with an estimated average price of $7.89. The impact to his portfolio due to this purchase was 0.28%. His holdings were 12,000,000 shares as of 09/30/2012. Idenix Pharmaceuticals, Inc. is a biopharmaceutical company engaged in the discovery and development of drugs for the treatment of human viral and other infectious diseases. Idenix Pharmaceuticals, Inc. has a market cap of $544.5 million; its shares were traded at around $5 with and P/S ratio of 78.3.

Added: Viasat Inc (VSAT)

Seth Klarman added to his holdings in Viasat Inc by 1.05%. His purchase prices were between $33.37 and $40.89, with an estimated average price of $38.26. The impact to his portfolio due to this purchase was 0.13%. His holdings were 10,750,000 shares as of 09/30/2012. ViaSat Inc. designs, produces and markets advanced digital satellite telecommunications and other networking and signal processing equipment. Viasat Inc has a market cap of $1.58 billion; its shares were traded at around $35.78 with and P/S ratio of 1.8.

Added: Novacopper Inc (NCQ)

Seth Klarman added to his holdings in Novacopper Inc by 46.02%. His purchase prices were between $1.69 and $2.64, with an estimated average price of $2.06. The impact to his portfolio due to this purchase was 0.09%. His holdings were 4,600,000 shares as of 09/30/2012. NovaCopper Inc. is a base metals exploration company focused on exploring and developing the Ambler copper-zinc-lead-gold-silver deposits project in Northwest Alaska. Novacopper Inc has a market cap of $110.1 million; its shares were traded at around $2.24 .

Added: Idenix Pharmaceuticals, Inc. (IDIX)

Seth Klarman added to his holdings in Idenix Pharmaceuticals, Inc. by 65.27%. The impact to his portfolio due to this purchase was 0.72%. His holdings were 16,527,400 shares as of 09/30/2012. Idenix Pharmaceuticals, Inc. is a biopharmaceutical company engaged in the discovery and development of drugs for the treatment of human viral and other infectious diseases. Idenix Pharmaceuticals, Inc. has a market cap of $544.5 million; its shares were traded at around $5 with and P/S ratio of 78.3.

Reduced: Hewlett-packard Co (HPQ)

Seth Klarman reduced to his holdings in Hewlett-packard Co by 46.46%. His sale prices were between $16.71 and $20.36, with an estimated average price of $18.47. The impact to his portfolio due to this sale was -6.55%. Seth Klarman still held 14,376,304 shares as of 09/30/2012. Hewlett Packard is one of the global providers of computing and imaging solutions and services for business and home. Hewlett-packard Co has a market cap of $26.77 billion; its shares were traded at around $13.2 with a P/E ratio of 3.3 and P/S ratio of 0.2. The dividend yield of Hewlett-packard Co stocks is 3.9%. Hewlett-packard Co had an annual average earnings growth of 25.4% over the past 5 years.

Reduced: Microsoft Corporation (MSFT)

Seth Klarman reduced to his holdings in Microsoft Corporation by 80%. His sale prices were between $28.63 and $31.45, with an estimated average price of $30.23. The impact to his portfolio due to this sale was -4.48%. Seth Klarman still held 1,400,000 shares as of 09/30/2012. Microsoft Corporation develops, manufactures, licenses, sells, and supports software products. Microsoft Corporation has a market cap of $241.74 billion; its shares were traded at around $27.2 with a P/E ratio of 10.9 and P/S ratio of 3.3. The dividend yield of Microsoft Corporation stocks is 2.8%. Microsoft Corporation had an annual average earnings growth of 13.6% over the past 10 years. GuruFocus rated Microsoft Corporation the business predictability rank of 5-star.

Here is the complete portfolio of Seth Klarman. Also check out:

1. Seth Klarman's Undervalued Stocks

2. Seth Klarman's Top Growth Companies, and

3. Seth Klarman's High Yield stocks


Rating: 2.4/5 (10 votes)

Comments

vgm
Vgm - 2 years ago
Thanks for posting.

Interesting to see Klarman unloading substantial portions of HPQ, MSFT.
superguru
Superguru - 2 years ago
I sometime feel Seth has some interns picking stocks from him with 1-2% of his total portfolio while he focuses on debt and other instruments. And we focus on his (his intern's) stocks picks.
Max7777
Max7777 premium member - 2 years ago
I follow Klarman closely and learned a lot from his book Margin of Safety, but I see his 10-Year Cumulative return has been below the S&P and worst than buying a vanguard ETF and not worry about it.. food for thought.
vgm
Vgm - 2 years ago
"I sometime feel Seth has some interns picking stocks from him with 1-2% of his total portfolio while he focuses on debt and other instruments."

Superguru,

I've had the same thoughts for some time, but never dared express them. I recall Seth in an interview saying something to the effect that he didn't consider himself in the same league as Buffett as far as stock picking and judging management were concerned.

He's reversing direction on HPQ after buying very recently at significantly higher prices, suggesting he's acknowledging an error.
cdubey
Cdubey - 2 years ago
HP was nearly 12% of his portfolio at one point. For an error he really overplayed his hand. HP still is around 7% of the portfolio. Probably he plans to sell out soon.
guru93
Guru93 - 2 years ago
It seems that either he's reversing direction and selling aout 100%, or, doesn't see the stock price appreciating considerably anytime soon and, so, harvesting a tax loss. Remember his entry points were well in the $20s.

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