According to the Aggregated Portfolio of Gurus, a Premium feature, four stocks that Seth Klarman (Trades, Portfolio) and his protégé David Abrams (Trades, Portfolio) both own are Facebook Inc. (FB, Financial), Willis Towers Watson (WLTW, Financial), PG&E Corp. (PCG, Financial) and Nuvation Bio Inc. (NUVB, Financial).
Klarman received an economics degree at Cornell University and an MBA at Harvard University. The guru’s Boston-based Baupost Group invests in a wide range of securities, including common stock, preferred stock, distressed debt and liquidations. Klarman, who follows a value-oriented approach to investing, also warned that investing is not just about producing absolute returns, but paying attention to the risks involved.
Prior to founding Abrams Capital, Abrams worked with Klarman for 10 years. Like his mentor, the guru also spreads his firm’s assets across a wide range of securities and applies a value-oriented investing approach. Abrams emphasizes a company’s fundamental characteristics to stock valuations.
As such, the two gurus have a few stocks in common as of the second-quarter portfolio filing.
Klarman and Abrams have a combined weight of 13.68% in Facebook Inc. (FB, Financial).
GuruFocus ranks the Menlo Park, California-based social media giant’s profitability 10 out of 10 on several positive investing signs, which include a five-star business predictability rank, a high Piotroski F-score of 7 and profit margins and returns that outperform more than 90% of global competitors.
Other gurus with holdings in Facebook include Baillie Gifford (Trades, Portfolio) and Chase Coleman (Trades, Portfolio)’s Tiger Global Management.
Willis Towers Watson
Klarman and Abrams have a combined weight of 9.13% in Willis Towers Watson (WLTW, Financial).
GuruFocus ranks the U.K.-based insurance company’s profitability 6 out of 10 on the back of a high Piotroski F-score of 7 and profit margins and returns that are outperforming more than 68% of global competitors.
PG&E
Klarman and Abrams have a combined weight of 7.33% in PG&E Corp. (PCG, Financial).
GuruFocus ranks the San Francisco-based utility company’s financial strength 2 out of 10 on several warning signs, which include a weak Altman Z-score of 0.25 and interest coverage and debt ratios that underperform more than 85% of global competitors.
Nuvation Bio
Klarman and Abrams have a combined weight of 1.42% in Nuvation Bio (NUVB, Financial).
The New York-based biotechnology company develops therapeutic medicines for treatments in oncology and cancer patients.
