Seth Klarman (Trades, Portfolio) of The Baupost Group acquired three new holdings in the second quarter –Â Citigroup Inc. (C, Financial), Liberty Interactive Corp. (LVNTA, Financial) and Avis Budget Group Inc. (CAR, Financial).
Citigroup
In Citigroup, Klarman purchased 5,167,000 shares for an average price of $44.22 per share. The transaction had an impact of 2.99% on the portfolio.
Citigroup, a financial services company, has a market cap of $134.7 billion with an enterprise value of $230.9 billion. Its price-earnings (P/E) ratio is 9.8, and its forward P/E is 9.9. Its price-book (P/B) ratio is 0.6, and its price-sales (P/S) ratio is 1.9. GuruFocus ranked its financial strength 5 of 10 and its profitability and growth 6 of 10.
The company has an operating margin of 30.1% and a net margin of 20.9%. Its Piotroski F-Score is 5, indicating a stable financial condition.
Citigroup's top shareholder among the gurus is Barrow, Hanley, Mewhinney & Strauss.
Liberty Interactive
In Liberty Interactive, Klarman purchased 2,469,533 shares for an average price of $34.43 per share. The transaction had an impact of 1.12% on the portfolio.
Liberty Interactive is engaged in the video and online commerce industries. It has a market cap of $24.4 billion with an enterprise value of $19.3 billion. It has a P/E of 20.7 with a forward P/E of 18.8. Its P/B is 2.01, and its P/S is 1.3. GuruFocus ranked its financial strength 4 of 10 and its profitability and growth 7 of 10.
The company has an operating margin of 9.9% and a net margin of 8.7%. Its Piotroski F-Score is 6, indicating a stable financial condition. Its Altman Z-Score is 2.29, placing it in the grey zone.
Liberty Interactive's top shareholder among the gurus is Alan Fournier (Trades, Portfolio).
Avis Budget Group
In Avis, Klarman purchased 1,787,227 shares at an average price of $27.63 per share. The transaction had an impact of 0.79% on the portfolio.
Avis, a car and truck rental company, has a market cap of $3.33 billion with an enterprise value of $17.5 billion. It has a P/E of 23.2 with a forward P/E of 11.7. Its P/B is 10.1 and its P/S is 0.43. GuruFocus ranked its financial strength 4 of 10 and its profitability and growth 7 of 10.
The company has an operating margin of 11.6% and a net margin of 1.9%. Its Piotroski F-Score is 5, indicating a stable financial condition. Its Altman Z-Score is 0.47, placing it in the distress zone, implying the company is under financial stress with the possibility of bankruptcy in the near future.
The top shareholder among the gurus is Diamond Hill Capital (Trades, Portfolio).
Klarman is a value investor and portfolio manager for The Baupost Group, which was founded in 1983. He owns stock in 40 companies and is worth $7.3 million. His quarter-to-quarter turnover rate is 10%. He invests in a variety of companies, ranging from traditional value stocks to more obscure investments such as distressed debt, liquidations and foreign equities or bonds.
Disclosure: I do not hold stock in any companies mentioned in the article.
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