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Seth Klarman Sees Bargains as the Market Heads Further Into Chaos

Baupost leader is also seeking more capital

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Sydnee Gatewood
Mar 20, 2020
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For the first time since 2011, billionaire investor

Seth Klarman (Trades, Portfolio) is seeking more capital for his hedge fund.

Having complained about the lack of bargains in the overvalued market for years, Bloomberg reported on Thursday that the value investor told clients that Baupost Group has spent about $1.5 billion on assets in recent weeks amid the carnage caused by the coronavirus pandemic.

The guru’s renewed bullish outlook is still in stark contrast to his fund’s performance, however, having posted losses amid the broader selloff. Bloomberg reported that a person familiar with the matter said the Boston-based firm, which manages about $29 billion, noted its preliminary estimates indicate it fell as much as 8% in the first two weeks of March and has declined around 10% year to date. In comparison, the S&P 500 Index dropped just over 8% in early March and is down more than 20% this year.

Last year, the fund gained more than 8%.

According to GuruFocus portfolio data, Klarman’s $8.60 billion equity portfolio, which was composed of 29 holdings as of the end of fourth-quarter 2019, was most heavily invested in the communication services sector at 40.48%.

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The guru’s 10 largest positions as of Dec. 31, 2019 were Liberty Global PLC (

LBTYK, Financial), Fox Corp. (FOXA, Financial), Viasat Inc. (VSAT, Financial), eBay Inc. (EBAY, Financial), ViacomCBS Inc. (VIAC, Financial), Cheniere Energy Inc. (LNG, Financial), Qorvo Inc. (QRVO, Financial), Bristol-Myers Squibb Co. (BMY, Financial), Theravance Biopharma Inc. (TBPH, Financial) and Colony Capital Inc. (CLNY, Financial).

Disclosure: No positions.

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