In the second quarter filing, Baupost owned 3,150,318 shares as of 06/30/2012 at an average price of $2.50 per share. He then purchased another 50% at prices between $1.70 and $2.84. In the latest filing, Baupost increased its stake by 9%.
It originally received shares of NCQ in the spin-off from NovaGold Resources (NG), which it also owns and has consistently been buying this year as it trades lower. NG is a rather large stake for Klarman at 3.5% of his total portfolio.
NCQ is a microcap exploration company with a $90 million market cap. Readers can purchase shares at $1.90 which is a significant discount to prices paid by Klarman.
The company has an Upper Kobuk mineral project, a copper-zinc-lead-gold-silver property located in the Ambler District of northwest Alaska.
The company is not a typical Klarman investment since NCQ is an exploration company that does not produce any cash flow.