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Klarman Ups His Stake in NovaCopper Yet Again

December 11, 2012 | About:
matsandalex

matsandalex

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Seth Klarman's hedge fund firm Baupost Group filed a 13G on Dec. 7, 2012, with the SEC regarding shares of NovaCopper (NCQ). As of Nov. 30, 2012, Baupost owns 10.73% of NCQ. The hedge fund has a total holding of 5,005,298 shares.

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.


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