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Seth Klarman Buys Alliance one international inc., Liberty media corporation, Sells Acergy s.a., Borders group inc., Exterran holdings inc.

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Seth Klarman has achieved outstanding results by deep value investing. He is willing to hold cash when valuation is high. Although closedly followed by value fans, not many investors understand how Klarman invest. This is the update of his Q2 buys and sells.

One thing that is different from Seth Klarman's portfolio from others is the warrants he owns. We don't know why owns these, but this is the list:



SymbolCompanySharesValue ($1000)Weighting (%)
GHQ/WS GHL ACQUIS... 1,250,0008130.08%
FYR/WSSAPPHIRE I... 6,200,0008060.08%
GHC/WSGLOBAL CON... 2,963,0005930.06%
PAX/WS PROSPECT A... 2,500,0002080.02%
NLX/WSOVERTURE A... 1,000,0001500.01%
BPW/WSBPW ACQUIS... 573,9001210.01%
DSP/WSSP ACQ CP ... 1,580,700790.01%
KHA-WTKBL HEALTH... 235,000640.01%
EST/WSENTERPRISE... 1,250,000630.01%
TMI/WSTM ENTERTA... 525,000530.01%
TGY/WSTREMISIS E... 325,00039<0.01%


During Q2 Seth Klarman sold more stocks than buying. He Sold Acergy s.a., Borders group inc., Exterran holdings inc., Ghl acquisition corp, Linn energy llc, Omnova solutions inc., Prepaid legal services inc., Pdl biopharma inc. during the 3-months ended 07/31/2009, according to the most recent filings of his investment company, The Baupost Group. Seth Klarman owns 28 stocks with a total value of $1 billion. These are the details of the buys and sells.

Added Positions: AOI, LMDIA,

Reduced Positions: NWS, HRZ,

Sold Out: ACGY, BGP, EXH, GHQ, LINE, OMN, PPD, PDLI,

For the details of Seth Klarman's stock buys and sells, go to the Link Here

This is the sector weightings of Seth Klarman's portfolio:

Technology 3.1% 3.1%
Financials 14.1% 14.1%
Consumer Services 35.8% 35.8%
Health Care 28.5% 28.5%
Consumer Goods 4.6% 4.6%
Industrials 2.2% 2.2%
Basic Materials 5.2% 5.2%
Oil & Gas 6.3% 6.3%


These are the top 5 holdings of Seth Klarman

  1. News Corp. (NWS-A) - 24,600,000 shares, 21.67% of the total portfolio
  2. CapitalSource Inc. (CSE) - 29,798,107 shares, 14.06% of the total portfolio
  3. Theravance Inc. (THRX) - 9,033,741 shares, 12.79% of the total portfolio
  4. LIBERTY MEDIA CORPORATION - SERIES A LIBERTY ENTER (LMDIA) - 4,222,160 shares, 10.9% of the total portfolio
  5. PDL BioPharma Inc. (PDLI) - 12,657,500 shares, 9.67% of the total portfolio


Added: Alliance one international inc. (AOI)

Seth Klarman added to his holdings in Alliance one international inc. by 42.94%. His purchase prices were between $3.6 and $5.05, with an estimated average price of $4.3. The impact to his portfolio due to this purchase was 0.97%. His holdings were 8,800,000 shares as of 07/31/2009.

Alliance One International Inc. is a leading independent leaf tobacco merchant. Alliance one international inc. has a market cap of $337.21 million; its shares were traded at around $3.79 with a P/E ratio of 5.34 and P/S ratio of 0.15.

Added: Liberty media corporation - series a liberty enter (LMDIA)

Seth Klarman added to his holdings in Liberty media corporation - series a liberty enter by 1.42%. His purchase prices were between $22.11 and $26.34, with an estimated average price of $24.4. The impact to his portfolio due to this purchase was 0.15%. His holdings were 4,222,160 shares as of 07/31/2009.

Liberty Media Corporation is a holding company which through its subsidiaries owns interests in a broad range of electronic retailing media communications and entertainment businesses. Those interests are attributed to three tracking stock groups: (1) the Liberty Interactive group which includes Liberty's interests in QVC Provide Commerce Backcountry.com BUYSEASONS Bodybuilding.com IAC/InterActiveCorp and Expedia (2) the Liberty Entertainment group which includes Liberty's interests in The DIRECTV Group Inc. Starz Entertainment FUN Technologies Inc. GSN LLC WildBlue Communications Inc. and Liberty Sports Holdings LLC and (3) the Liberty Capital group which includes all businesses assets and liabilities not attributed to the Interactive group or the Entertainment group including its subsidiaries Starz Media LLC Atlanta National League Baseball Club Inc. and TruePosition Inc. and minority equity investments in Time Warner Inc. and Sprint Nextel Co Liberty media corporation - series a liberty enter has a market cap of $13.77 billion; its shares were traded at around $27.84 .

Reduced: News corp. (NWS)

Seth Klarman reduced to his holdings in News corp. by 91.85%. His sale prices were between $8.73 and $11.73, with an estimated average price of $10.3. The impact to his portfolio due to this sale was -0.41%. Seth Klarman still held 439,300 shares as of 07/31/2009.

News Corporation's diversified global operations include the production and distribution of motion pictures and television programming; television satellite and cable broadcasting; the publication of newspapers magazines books; the production and distribution of promotional and advertising products and services; the development of digital broadcasting; the development of conditional access and subscriber management systems; and the creation and distribution of popular on-line programming. News corp. has a market cap of $33.38 billion; its shares were traded at around $12.77 with a P/E ratio of 19.65 and P/S ratio of 1.1. The dividend yield of News corp. stocks is 0.94%. News corp. had an annual average earning growth of 5.7% over the past 10 years.

Sold Out: Acergy s.a. (ACGY)

Seth Klarman sold out his holdings in Acergy s.a.. His sale prices were between $6.6 and $11.19, with an estimated average price of $9.

Acergy S.A. is a seabed-to-surface engineering and construction contractor for the offshore oil and gas industry worldwide. They plan design and deliver complex integrated projects in harsh and challenging environments. The company operates internationally as one group globally aware and locally sensitive sharing our expertise and experience to create innovative solutions. It is more than solution providers and are solution partners ready to make long-term investments in its people assets know-how and relationships in support of the clients. Acergy s.a. has a market cap of $1.91 billion; its shares were traded at around $10.42 with a P/E ratio of 6.59 and P/S ratio of 0.76. The dividend yield of Acergy s.a. stocks is 1.92%.

Sold Out: Omnova solutions inc. (OMN)

Seth Klarman sold out his holdings in Omnova solutions inc.. His sale prices were between $1.75 and $3.09, with an estimated average price of $2.5.

Omnova Solutions Inc. develops manufactures and markets emulsion polymersspecialty chemicals and decorative and building products for a variety ofindustrial commercial and consumer markets. The Performance Chemicals unit's broad range of emulsion polymers and specialty chemicals are used as coatings binders adhesives and additives for paper carpet textile and various other industries. Omnova solutions inc. has a market cap of $227.13 million; its shares were traded at around $5.18 with a P/E ratio of 20.72 and P/S ratio of 0.26. Omnova solutions inc. had an annual average earning growth of 2.1% over the past 5 years.

Sold Out: Linn energy llc (LINE)

Seth Klarman sold out his holdings in Linn energy llc. His sale prices were between $14.28 and $19.5, with an estimated average price of $17.2.

Linn Energy LLC is an independent oil and gas company focused on the development and acquisition of long-lived properties which complement its asset profile in producing basins within the United States. Its goal is to provide stability and growth in distributions to our unitholders through a combination of continued successful drilling and acquisitions. Linn energy llc has a market cap of $2.71 billion; its shares were traded at around $22.53 with a P/E ratio of 16.21 and P/S ratio of 1.89. The dividend yield of Linn energy llc stocks is 11.19%.

Sold Out: Ghl acquisition corp (GHQ)

Seth Klarman sold out his holdings in Ghl acquisition corp. His sale prices were between $9.41 and $9.79, with an estimated average price of $9.6.

GHL ACQUISITION CORP. is a newly formed blank check company organized for the purpose of effecting a merger capital stock exchange asset acquisition stock purchase reorganization or other similar business combination with one or more businesses or assets which they refer to as their initial business combination. The Company will not limit its efforts in identifying a prospective target business to a particular industry. Instead they will focus on industries and target businesses in the United States and Europe that may provide significant opportunity for growth. Ghl acquisition corp has a market cap of $480.15 million; its shares were traded at around $9.9 .

Sold Out: Exterran holdings inc. (EXH)

Seth Klarman sold out his holdings in Exterran holdings inc.. His sale prices were between $16.01 and $21.91, with an estimated average price of $18.9.

Exterran Holdings Inc. is the global market leader in full service natural gas compression and a premier provider of sales operations maintenance fabrication service and equipment for oil and gas production processing and transportation applications. Exterran serves customers across the energy spectrum from producers to transporters to processors to storage owners. Exterran holdings inc. has a market cap of $1.08 billion; its shares were traded at around $17.24 with a P/E ratio of 7.27 and P/S ratio of 0.34. Exterran holdings inc. had an annual average earning growth of 8.8% over the past 10 years.

Sold Out: Borders group inc. (BGP)

Seth Klarman sold out his holdings in Borders group inc.. His sale prices were between $1.16 and $4.34, with an estimated average price of $2.7.

Borders Group Inc. through its subsidiaries is a premier operator of book and music stores. Borders Group Inc. conducts its business via superstores mall-based stores or the Internet. The company's presence is felt not only in the U.S. but worldwide. Borders group inc. has a market cap of $211.4 million; its shares were traded at around $3.51 with and P/S ratio of 0.06.

Sold Out: Prepaid legal services inc. (PPD)

Seth Klarman sold out his holdings in Prepaid legal services inc.. His sale prices were between $31.68 and $44.74, with an estimated average price of $39.7.

PRE-PAID LEGAL SERVICES INC. underwrites and markets legal service plans which provide for or reimburse a portion of legal fees incurred by members in connection with specified matters. Prepaid legal services inc. has a market cap of $522.85 million; its shares were traded at around $47.61 with a P/E ratio of 8.72 and P/S ratio of 1.13. The dividend yield of Prepaid legal services inc. stocks is 0.21%. Prepaid legal services inc. had an annual average earning growth of 14.6% over the past 10 years. GuruFocus rated Prepaid legal services inc. the business predictability rank of 4-star.

Reduced: Horizon lines inc. (HRZ)

Seth Klarman reduced to his holdings in Horizon lines inc. by 39.61%. The impact to his portfolio due to this sale was 1.12%. Seth Klarman still held 2,199,129 shares as of 07/31/2009.

Horizon Lines Inc. is the nation's leading Jones Act container shipping and integrated logistics company. It accounts for total U.S. marine container shipments from the continental U.S. to the three non- contiguous Jones Act markets Alaska Hawaii and Puerto Rico and to Guam. Company's mission is to deliver best-in-class transportation services and unmatched customer satisfaction through our heritage people process and technology. As a domestic transportation leader Horizon Lines is committed to protecting the environment and ensuring the safety and health of there associates and the public. Horizon lines inc. has a market cap of $151.79 million; its shares were traded at around $5.03 with a P/E ratio of 8.25 and P/S ratio of 0.12. The dividend yield of Horizon lines inc. stocks is 8.75%.

Sold Out: Pdl biopharma inc. (PDLI)

Seth Klarman sold out his holdings in PDL biopharma inc..

Protein Design Labs Inc. is a biopharmaceutical company focused on the research development and commercialization of novel therapies for inflammation and autoimmune diseases acute cardiac conditions and cancer. PDL markets several biopharmaceutical products in the United States through its hospital sales force and wholly-owned subsidiary ESP Pharma Inc. As a leader in the development of humanized antibodies PDL has licensed its patents to numerous pharmaceutical and biotechnology companies some of which are now paying royalties on net sales of licensed products. Pdl biopharma inc. has a market cap of $1.01 billion; its shares were traded at around $8.49 with a P/E ratio of 7.72 and P/S ratio of 3.45. The dividend yield of Pdl biopharma inc. stocks is 11.78%.


Rating: 2.8/5 (4 votes)

Comments

cfafrank
Cfafrank - 4 years ago
Mr. Klarman got those warrants for free. Acquisition holding companies often issue units consisting of one share and one warrant. During the market crash, the prices of those units were depressed to a level where you can buy the units and sell the shares, keeping the warrants with low cost.

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