Legendary value investor Seth Klarman just reported his fourth quarter equity portfolio at The Baupost Group. The Baupost Group owns 23 stocks with a total value of $3.3 billion. This is just a relative small portfolio of Baupost’s overall portfolio, which owns many other assets which the hedge fund is not required to disclose.
Seth Klarman was named Investment Guru of the Year 2011 by GuruFocus readers. In an interview with Charlie Rose he said that he is still in the stage of value investing that he buys cigar butt at dirty cheap prices. In deed, most of his holdings are small companies that are traded at a large discount. His latest new position was Targacept (TRGT, Financial), which our columnist Matt Blecker thought was extremely undervalued. The stock went even cheaper after the writing. It has since recovered most of the loss. We reported the purchase of Targacept (TRGT) for Premium Members long ago. This quarterly report is just a summary of all the trades made in the quarter.
One notable trade in the fourth quarter was selling of PDL BioPharma (PDLI, Financial). He reduced half of his position. He made more trades with the stock in January and February. We have reported this to Premium Members in the section of Real Time Picks.
This is the portfolio chart of Seth Klarman. You can click on the legend of the chart to show/hide buys, sells, or holdings. Each ball on the chart represents a position in the portfolio. You can move your mouse on the balls to see the details of each position and click to see the details of all guru trades with this position.
These are the details of the buys and sells during the fourth quarter:
This is the sector weightings of his portfolio:
These are the top 5 holdings of Seth Klarman
New Purchase: Targacept Inc. (TRGT)
Seth Klarman initiated holdings in Targacept Inc.. His purchase prices were between $4.99 and $19.25, with an estimated average price of $11.54. The impact to his portfolio due to this purchase was 1%. His holdings were 6,000,000 shares as of 12/31/2011. TARGACEPT INC is a clinical-stage biopharmaceutical company that discovers and develops NNR Therapeutics, a new class of drugs for the treatment of central nervous system diseases and disorders. Targacept Inc. has a market cap of $211 million; its shares were traded at around $6.07 with and P/S ratio of 2.5.
Sold Out: Breitburn Energy Partners L.p. (BBEP, Financial)
Seth Klarman sold out his holdings in Breitburn Energy Partners L.p.. His sale prices were between $16.18 and $19.1, with an estimated average price of $17.55. BreitBurn Energy Partners L.P. is an independent oil and gas limited partnership, recently formed by a subsidiary of Provident Energy Trust, focused on the acquisition, exploitation and development of oil and gas properties. Breitburn Energy Partners L.p. has a market cap of $1.13 billion; its shares were traded at around $18.8 with a P/E ratio of 60 and P/S ratio of 3.6. The dividend yield of Breitburn Energy Partners L.p. stocks is 9.4%.
Added: News Corp. (NWS, Financial)
Seth Klarman added to his holdings in News Corp. by 148.84%. His purchase prices were between $15.21 and $18.23, with an estimated average price of $17.29. The impact to his portfolio due to this purchase was 3.47%. His holdings were 10,658,335 shares as of 12/31/2011. 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 $50.89 billion; its shares were traded at around $19.85 with a P/E ratio of 16.7 and P/S ratio of 1.5. The dividend yield of News Corp. stocks is 0.9%.
Added: Idenix Pharmaceuticals Inc. (IDIX, Financial)
Seth Klarman added to his holdings in Idenix Pharmaceuticals Inc. by 126.6%. His purchase prices were between $4.55 and $8.22, with an estimated average price of $6.49. The impact to his portfolio due to this purchase was 0.73%. His holdings were 5,665,000 shares as of 12/31/2011. Idenix Pharmaceuticals, Inc. is a biopharmaceutical company engaged in the discovery and development of drugs for the treatment of human viral and other infectious diseases. Idenix Pharmaceuticals Inc. has a market cap of $1.22 billion; its shares were traded at around $10.92 with and P/S ratio of 119.3.
Added: Novagold Resources Inc. (NG, Financial)
Seth Klarman added to his holdings in Novagold Resources Inc. by 49.33%. His purchase prices were between $6.19 and $11.49, with an estimated average price of $8.95. The impact to his portfolio due to this purchase was 0.63%. His holdings were 7,466,275 shares as of 12/31/2011. NovaGold Resources is a gold and copper company engaged in the exploration and development of mineral properties in Alaska and Western Canada. Novagold Resources Inc. has a market cap of $2.13 billion; its shares were traded at around $8.48 with and P/S ratio of 3511.2. Novagold Resources Inc. had an annual average earnings growth of 22% over the past 5 years.
Added: Allied Nevada Gold (ANV, Financial)
Seth Klarman added to his holdings in Allied Nevada Gold by 14.65%. His purchase prices were between $29.8 and $39.7, with an estimated average price of $35.02. The impact to his portfolio due to this purchase was 0.46%. His holdings were 4,012,750 shares as of 12/31/2011. ALLIED NEVADA GOLD CORP. is engaged in the evaluation, acquisition, exploration and advancement of gold exploration and development projects in Nevada. Allied Nevada Gold has a market cap of $3.14 billion; its shares were traded at around $33.92 with a P/E ratio of 130.4 and P/S ratio of 24.
Reduced: News Corp. (NWSA)
Seth Klarman reduced to his holdings in News Corp. by 28.51%. His sale prices were between $15.01 and $17.87, with an estimated average price of $16.96. The impact to his portfolio due to this sale was -3.07%. Seth Klarman still held 15,041,665 shares as of 12/31/2011. NEWS CORPORATION is a diversified entertainment company with operations in eight industry segments: filmed entertainment; television; cable network programming; direct broadcast satellite television; magazines and inserts; newspapers and information services; book publishing; and other. News Corp. has a market cap of $33.58 billion; its shares were traded at around $19.175 with a P/E ratio of 16 and P/S ratio of 1. The dividend yield of News Corp. stocks is 1%.
Reduced: PDL Biopharma Inc. (PDLI)
Seth Klarman reduced to his holdings in Pdl Biopharma Inc. by 48.84%. His sale prices were between $5.35 and $6.4, with an estimated average price of $5.97. The impact to his portfolio due to this sale was -1.4%. Seth Klarman still held 8,000,000 shares as of 12/31/2011. 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 Biopharma Inc. has a market cap of $906.1 million; its shares were traded at around $6.39 with a P/E ratio of 5.8 and P/S ratio of 2.6. The dividend yield of Pdl Biopharma Inc. stocks is 9.2%.
Reduced: Alere (ALR, Financial)
Seth Klarman reduced to his holdings in Alere by 35.48%. His sale prices were between $18.51 and $26.43, with an estimated average price of $23.09. The impact to his portfolio due to this sale was -0.72%. Seth Klarman still held 2,000,000 shares as of 12/31/2011. Alere Inc., formerly known as Inverness Medical Innovations, Inc. Alere has a market cap of $2.11 billion; its shares were traded at around $25.66 with a P/E ratio of 9.5 and P/S ratio of 1.
Seth Klarman was named Investment Guru of the Year 2011 by GuruFocus readers. In an interview with Charlie Rose he said that he is still in the stage of value investing that he buys cigar butt at dirty cheap prices. In deed, most of his holdings are small companies that are traded at a large discount. His latest new position was Targacept (TRGT, Financial), which our columnist Matt Blecker thought was extremely undervalued. The stock went even cheaper after the writing. It has since recovered most of the loss. We reported the purchase of Targacept (TRGT) for Premium Members long ago. This quarterly report is just a summary of all the trades made in the quarter.
One notable trade in the fourth quarter was selling of PDL BioPharma (PDLI, Financial). He reduced half of his position. He made more trades with the stock in January and February. We have reported this to Premium Members in the section of Real Time Picks.
This is the portfolio chart of Seth Klarman. You can click on the legend of the chart to show/hide buys, sells, or holdings. Each ball on the chart represents a position in the portfolio. You can move your mouse on the balls to see the details of each position and click to see the details of all guru trades with this position.
These are the details of the buys and sells during the fourth quarter:
- New Purchases: TRGT,
- Added Positions: NWS, IDIX, NG, ANV,
- Reduced Positions: NWSA, PDLI, ALR,
- Sold Out: BBEP,
This is the sector weightings of his portfolio:
| Technology | 38.6% |
| Health Care | 20.3% |
| Oil & Gas | 15.4% |
| Consumer Services | 14.4% |
| Basic Materials | 5.5% |
| Financials | 2.7% |
| Consumer Goods | 1.4% |
These are the top 5 holdings of Seth Klarman
- BP PLC ADS (BP) - 12,000,000 shares, 15.4% of the total portfolio. Shares reduced by 12.67%
- ViaSat Inc. (VSAT) - 10,499,992 shares, 14.5% of the total portfolio.
- HewlettPackard Co. (HPQ) - 18,750,000 shares, 14.5% of the total portfolio. Shares reduced by 9.64%
- Theravance Inc. (THRX) - 14,225,961 shares, 9.4% of the total portfolio.
- Microsoft Corp. (MSFT) - 12,000,000 shares, 9.3% of the total portfolio.
New Purchase: Targacept Inc. (TRGT)
Seth Klarman initiated holdings in Targacept Inc.. His purchase prices were between $4.99 and $19.25, with an estimated average price of $11.54. The impact to his portfolio due to this purchase was 1%. His holdings were 6,000,000 shares as of 12/31/2011. TARGACEPT INC is a clinical-stage biopharmaceutical company that discovers and develops NNR Therapeutics, a new class of drugs for the treatment of central nervous system diseases and disorders. Targacept Inc. has a market cap of $211 million; its shares were traded at around $6.07 with and P/S ratio of 2.5.
Sold Out: Breitburn Energy Partners L.p. (BBEP, Financial)
Seth Klarman sold out his holdings in Breitburn Energy Partners L.p.. His sale prices were between $16.18 and $19.1, with an estimated average price of $17.55. BreitBurn Energy Partners L.P. is an independent oil and gas limited partnership, recently formed by a subsidiary of Provident Energy Trust, focused on the acquisition, exploitation and development of oil and gas properties. Breitburn Energy Partners L.p. has a market cap of $1.13 billion; its shares were traded at around $18.8 with a P/E ratio of 60 and P/S ratio of 3.6. The dividend yield of Breitburn Energy Partners L.p. stocks is 9.4%.
Added: News Corp. (NWS, Financial)
Seth Klarman added to his holdings in News Corp. by 148.84%. His purchase prices were between $15.21 and $18.23, with an estimated average price of $17.29. The impact to his portfolio due to this purchase was 3.47%. His holdings were 10,658,335 shares as of 12/31/2011. 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 $50.89 billion; its shares were traded at around $19.85 with a P/E ratio of 16.7 and P/S ratio of 1.5. The dividend yield of News Corp. stocks is 0.9%.
Added: Idenix Pharmaceuticals Inc. (IDIX, Financial)
Seth Klarman added to his holdings in Idenix Pharmaceuticals Inc. by 126.6%. His purchase prices were between $4.55 and $8.22, with an estimated average price of $6.49. The impact to his portfolio due to this purchase was 0.73%. His holdings were 5,665,000 shares as of 12/31/2011. Idenix Pharmaceuticals, Inc. is a biopharmaceutical company engaged in the discovery and development of drugs for the treatment of human viral and other infectious diseases. Idenix Pharmaceuticals Inc. has a market cap of $1.22 billion; its shares were traded at around $10.92 with and P/S ratio of 119.3.
Added: Novagold Resources Inc. (NG, Financial)
Seth Klarman added to his holdings in Novagold Resources Inc. by 49.33%. His purchase prices were between $6.19 and $11.49, with an estimated average price of $8.95. The impact to his portfolio due to this purchase was 0.63%. His holdings were 7,466,275 shares as of 12/31/2011. NovaGold Resources is a gold and copper company engaged in the exploration and development of mineral properties in Alaska and Western Canada. Novagold Resources Inc. has a market cap of $2.13 billion; its shares were traded at around $8.48 with and P/S ratio of 3511.2. Novagold Resources Inc. had an annual average earnings growth of 22% over the past 5 years.
Added: Allied Nevada Gold (ANV, Financial)
Seth Klarman added to his holdings in Allied Nevada Gold by 14.65%. His purchase prices were between $29.8 and $39.7, with an estimated average price of $35.02. The impact to his portfolio due to this purchase was 0.46%. His holdings were 4,012,750 shares as of 12/31/2011. ALLIED NEVADA GOLD CORP. is engaged in the evaluation, acquisition, exploration and advancement of gold exploration and development projects in Nevada. Allied Nevada Gold has a market cap of $3.14 billion; its shares were traded at around $33.92 with a P/E ratio of 130.4 and P/S ratio of 24.
Reduced: News Corp. (NWSA)
Seth Klarman reduced to his holdings in News Corp. by 28.51%. His sale prices were between $15.01 and $17.87, with an estimated average price of $16.96. The impact to his portfolio due to this sale was -3.07%. Seth Klarman still held 15,041,665 shares as of 12/31/2011. NEWS CORPORATION is a diversified entertainment company with operations in eight industry segments: filmed entertainment; television; cable network programming; direct broadcast satellite television; magazines and inserts; newspapers and information services; book publishing; and other. News Corp. has a market cap of $33.58 billion; its shares were traded at around $19.175 with a P/E ratio of 16 and P/S ratio of 1. The dividend yield of News Corp. stocks is 1%.
Reduced: PDL Biopharma Inc. (PDLI)
Seth Klarman reduced to his holdings in Pdl Biopharma Inc. by 48.84%. His sale prices were between $5.35 and $6.4, with an estimated average price of $5.97. The impact to his portfolio due to this sale was -1.4%. Seth Klarman still held 8,000,000 shares as of 12/31/2011. 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 Biopharma Inc. has a market cap of $906.1 million; its shares were traded at around $6.39 with a P/E ratio of 5.8 and P/S ratio of 2.6. The dividend yield of Pdl Biopharma Inc. stocks is 9.2%.
Reduced: Alere (ALR, Financial)
Seth Klarman reduced to his holdings in Alere by 35.48%. His sale prices were between $18.51 and $26.43, with an estimated average price of $23.09. The impact to his portfolio due to this sale was -0.72%. Seth Klarman still held 2,000,000 shares as of 12/31/2011. Alere Inc., formerly known as Inverness Medical Innovations, Inc. Alere has a market cap of $2.11 billion; its shares were traded at around $25.66 with a P/E ratio of 9.5 and P/S ratio of 1.
