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.