In the first quarter, Seth Klarman (Trades, Portfolio) purchased a sizable new position in oil and gas company Pioneer Natural Resources Co. (PXD, Financial) and a smaller holding of KLX Inc. (KLXI, Financial).
Klarman, the Baupost Group investor often looked to for his sagacity, warned shareholders in a September letter obtained by Zero Hedge:
“It’s not hard to reach the conclusion that so many investors feel good not because things are good but because investors have been seduced into feeling good—otherwise known as 'the wealth effect. 'We really are far along in re-creating the markets of 2007, which felt great but were deeply unstable when shocks started to pile up."
His portfolio contained 27 positions in total at quarter-end, with the topmost sectors represented being Energy at 39.6%, Technology at 25.5% and Healthcare at 22.9%. In aggregate the portfolio is valued at $5.9 billion.
Pioneer Natural Resources Co. (PXD, Financial)
Klarman purchased 3,166,937 shares of Pioneer Natural Resources Co., an 8.76% portfolio weight. The stock’s price for the quarter averaged $154 per share.
Pioneer Natural Resources Co. is a Delaware corporation formed in 1997. Pioneer Natural Resources Co. has a market cap of $22.81 billion; its shares were traded at around $152.79 with a P/E ratio of 30.60 and P/S ratio of 5.70. The dividend yield of Pioneer Natural Resources Co. stocks is 0.10%. Pioneer Natural Resources Co. had an annual average earnings growth of 7.90% over the past 10 years. GuruFocus rated Pioneer Natural Resources Co. the business predictability rank of 2-star.
Klarman purchased 1.5 million shares of KLX Inc., a 0.98% portfolio weight. The stock’s price in the first quarter averaged $40.
KLX Inc. has a market cap of $2.32 billion; its shares were traded at around $44.16 with a P/E ratio of 26.30 and P/S ratio of 1.40.
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