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Seth Klarman’s Top Growth Stocks

October 08, 2013 | About:
Sally Jones

Sally Jones

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The portfolio of Seth Klarman, the legendary value investor and portfolio manager of The Baupost Group, currently lists 24 stocks, five of them new, and a total value of $4.02 billion. His quarter-over-quarter turnover is 22%.

Here are Klarman’s three stocks with the highest average 10-year EBITDA growth rates, as of June 30, 2013:



Micron Technology Inc. (MU): 10-year EBITDA growth 21.4%


Predictability: 2 out of 5 Stars

Up 211% over 12 months, Micron Technology Inc. has a market cap of $18.56 billion; its shares were traded at around $17.88. The P/B ratio is 2.60.

Incorporated in 1978, Micron Technology Inc. is global manufacturer and marketer of semiconductor devices, principally NAND Flash, DRAM and NOR Flash memory, as well as other innovative memory technologies, packaging solutions and semiconductor systems for use in leading-edge computing, consumer, networking, automotive, industrial, embedded and mobile products. The company also manufactures semiconductor components for CMOS image sensors and other semiconductor products.

Historical share pricing, revenue and net income:

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Guru Action: As of June 30, 2013, Seth Klarman made a new buy of 41.5 million shares at an average price of $11.08 for a gain of 68.8%.

His current shares of 41.5 million are valued at around $594.6 million, with a portfolio weight of 14.8%.

Check out the seven gurus that made new buys as of the second quarter of 2013 and very active insider trading.

Oracle Corporation (ORCL): 10-year EBITDA growth 19.8%

Predictability: 5 out of 5 Stars

Up 6% over 12 months, Oracle Corporation has a market cap of $147.75 billion; its shares were traded at around $32.42. The P/E ratio is 14.10. The dividend yield is 0.91%.

Originally begun in 1977, Oracle Corporation is a provider of enterprise software and a provider of computer hardware products and services. The company provides technologies of cloud computing, including database and middleware as well as web-based applications, virtualization, clustering and systems management. It provides cloud services as well as software and hardware products to other cloud service providers, both public and private. Oracle’s software business consists of two operating segments, namely new software licenses and software license updates and product support.

Historical share pricing, revenue and net income:

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Guru Action: As of June 30, 2013, Seth Klarman reduced his position by 29.53%, selling 1 million shares at an average price of $33.18 for a loss of 2.2%.

His current shares of 2,386,890 are valued at around $73.3 million, with a portfolio weight of 1.8%.

Since the second quarter of 2012, he gained 17% on 15,800,000 shares bought at an average price of $27.84 per share. He lost 3% on 13,413,110 shares bought at an average price of $33.29 per share.

Six gurus made new buys in the second quarter and there is very active insider trading.

Rovi Corp. (ROVI): 10-year EBITDA growth 7.1%

Predictability: 3 out of 5 Stars

Up 41% over 12 months, Rovi Corp.has a market cap of $1.96 billion; its shares were traded at around $19.25. The P/B ratio is 1.40.

Formed in 2007, Rovi Corp. connects consumers with digital entertainment. The company focuses on the discovery, delivery, display and monetization of digital entertainment by providing a broad set of integrated solutions that are embedded in its customers' products and services. The company's offerings enable discovery, advertising and video display and delivery.

Historical share pricing, revenue and net income:

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Guru Action: As of June 30, 2013, Seth Klarman reduced his position by 24.51%, selling 2 million shares at an average price of $23.44 for a loss of 18%.

His current shares of 6.16 million are valued at around $140.6 million, with a portfolio weight of 3.5%.

Since the third quarter of 2012, he gained 15% on 8,160,000 shares bought at an average price of $16.71 per share. He lost 18% on 2 million shares bought at an average price of $23.44 per share.

Check out the three gurus who made new buys in the second quarter, along with insider trading.

Here is the complete portfolio of Seth Klarman.



Be sure to read:

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: 3.1/5 (8 votes)

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