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‘Margin of Safety’ Seth Klarman’s First Quarter Selling

May 23, 2013 | About:
Sally Jones

Sally Jones

49 followers
Fascinating online discovery… You can either buy Seth Klarman’s lucid book, “Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor” for around $2,000 plus shipping, or you can download it for free as a pdf file. An amazing writer, billionaire Seth Klarman is founder and president of one of the world’s largest hedge funds, The Baupost Group, a value investing manager. As of March 31, 2013, Klarman sold out three major holdings in gold, insurance and news companies:

Sold Out: Allied Nevada Gold Corp. (ANV) - Gold

As of March 31, 2013, Seth Klarman sold out his position with ANV, unloading around 2.8 million shares at an average price of $22.1 for a loss of 66.3%. This stock never delivered a gain in seven quarters held by Klarman, only double-digit losses. His worst quarter showed a loss of 81.3% in the third quarter of 2011.

This trade impacts his portfolio by -2.8%.

The current share price is $7.45 compared to past valuations:

1369334092561.png

Sold Out: Genworth Financial Inc. (GNW) – Insurance - Diversified

As of March 31, 2013, Seth Klarman sold out his position with GNW, selling 15 million shares at an average price of $9.18 for a gain of 12.7%.

This stock has delivered four quarters of gains for Klarman, starting in the third quarter of 2011 with a gain of 43.2%, his highest gaining quarter.

This trade impacts his portfolio by -3.6%.

The current share price is $10.35 compared to past valuations:

1369334024226.png

Sold Out: News Corporation (NWSA) – Media - Diversified

As of March 31, 2013, Seth Klarman sold out his position with NWSA, unloading around 8 million shares at an average price of $28.50 for a gain of 15.2%.

This stock has delivered 12 quarters of gains for Klarman, starting in the third quarter of 2008 with a gain of 136.9%. His highest gaining quarters were the fourth quarter of 2008 for a 282.8% gain and the first quarter of 2009 with a gain of 383.7%.

This trade impacts his portfolio by -6.6%.

The current share price is $32.84 compared to past valuations:

1369333941592.png

In a recent portfolio update, Guru Seth Klarman of The Baupost Group lists 22 stocks, four of them new, with a total value of $3.1 billion and a quarter-over-quarter turnover of 24%.



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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.8/5 (5 votes)

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