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Top Four from Baupost’s Seth Klarman

July 18, 2013 | About:
Sally Jones

Sally Jones

49 followers
Legendary billionaire and author Seth Klarman is a value investor and portfolio manager of the investment partnership The Baupost Group, founded in 1982. Baupost Group manages around $25 billion, and has had averaged returns of nearly 20% annually since inception. Seth Klarman is also the author of "Margin of Safety," a book that sells for around $2,000, or really good value investors may choose to dig deep for a free download on the Internet.

Check out the top four picks of Seth Klarman at The Baupost Group, currently listing 22 stocks, four of them new, and a total value of $3.1 billion with a quarter-over-quarter turnover of 24%.

No. 1: BP PLC (BP)

Weighting: 23.3%

Shares Owned: 17,126,858

Share Price: $42.71

Up 2% over 12 months

Seth Klarman is the second top shareholder of BP, with 0.54% shares outstanding. James Barrow is first, holding 0.72% shares outstanding. Klarman’s trading history shows a slight gain of 2% on over 24 million shares bought at an average price of $41.90.

BP PLC (BP) is a fuel, lubricant, and petrochemical products company with a market cap of $134.75 billion; its shares were traded at around $42.71 with a P/E ratio of 6.00 and P/S ratio of 0.34. The dividend yield of BP PLC stocks is 4.90%.

Historical pricing:

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Klarman’s Trading History:



No. 2: Viasat Inc. (VSAT)

Weighting: 17.1%

Shares Owned: 11,000,000

Share Price: $68.78

Up 68% over 12 months

With a mega position of 24.69% shares outstanding, Klarman is by far the number one Guru stakeholder of Viasat. His trading history shows 12 quarters of high gains. His highest gain was 217.6% in the second quarter of 2008.

Providing fixed and mobile broadband services, satellite and wireless networks and secure networking systems, products and services, Viasat Inc. (VSAT) has a market cap of $3.1 billion; its shares were traded at around $68.78with and P/S ratio of 2.70. Viasat Inc. had an annual average earnings growth of 10.5% over the past 10 years.

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No. 3: American International Group Inc. (AIG)

Weighting: 14.8%

Shares Owned: 11,850,200

Share Price: $47.00

Up 48% over 12 months

As the sixth top Guru shareholder of AIG, Klarman holds 0.8% of shares outstanding, compared to Fairholme’s Bruce Berkowitz, the top Guru shareholder, at 5.82%. Klarman bought in the fourth quarter of 2012 for 7 million shares at an average price of $34.08 for a gain of 37.4%.



American International Group Inc. (AIG) is a holding company engaged in a range of insurance and insurance-related activities through its subsidiaries. American International Group Inc. has a market cap of $68.51 billion; its shares were traded at around $47.00 with a P/E ratio of 37.10 and P/S ratio of 1.16.

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No. 4: Theravance Inc. (THRX)

Weighting: 10.3%

Shares Owned: 13,553,800

Share Price: $38.94

Up 32% over 12 months

Seth Klarman is the top Guru shareholder at Theravance Inc. (THRX), holding 13.77% of shares outstanding, followed by Jean-Marie Eveillard holding 0.47% of the biotech company.

Theravance Inc. is a biopharmaceutical company focused on the discovery, development and commercialization of small molecule medicines across a number of therapeutic areas including respiratory disease, bacterial infections and gastrointestinal problems.

Theravance Inc. has a market cap of $3.94 billion; its shares were traded at around $38.94 with and P/S ratio of 363.90.

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Here is the complete portfolio of Seth Klarman.



1. Seth Klarman's Undervalued Stocks

2. Seth Klarman's Top Growth Companies

3. Seth Klarman's High Yield stocks

4. Stocks that Seth Klarman keeps buying

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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: 2.5/5 (6 votes)

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