Venerated bargain-shopping investor Seth Klarman (Trades, Portfolio) reported his second quarter portfolio changes Monday, listing five new buys, including Chicago Tribune daily newspaper owner Tribune Media Co. (TRCO, Financial).
Klarman manages roughly $32 billion at his hedge fund The Baupost Group, whose public portfolio of long positions is valued at $11.1 billion. The portfolio encompassed 31 stocks, with the largest sectors represented being consumer cyclical at 26.2%, energy at 20.3% and health care at 19.3%. The low-profile manager prizes a large spread between the value of a business and its stock price, or margin of safety, which he made the title of his classic book, “Margin of Safety.”
Klarman also purchased shares of Sinclaire Broadcast Group, the company that Tribune Media planned to merge with until it severed the agreement on Aug. 9.
At year-end, Klarman said that he had about 36% of his portfolio in cash and was having difficulty finding good opportunities in a crowded and expensive market, according to a letter obtained by Business Insider.
In the second quarter, Klarman acquired shares of the following companies: AT&T Inc. (T, Financial), Tribune Media Co. (TRCO, Financial), Sinclair Broadcast Group Inc. (SBGI, Financial), Translate Bio Inc. (TBIO, Financial) and Shire Plc (SHPG, Financial).
New buys
Klarman purchased 9,480,700 shares of the company, giving it 2.74% portfolio weight. The stock’s second quarter share price averaged $33.
AT&T Inc. has a market cap of $233.91 billion; its shares were traded around $32.21 with a P/E ratio of 6.29 and P/S ratio of 1.27. The trailing 12-month dividend yield of AT&T Inc. stocks is 6.18%. The forward dividend yield of AT&T Inc. stocks is 6.20%. AT&T Inc. had an annual average earnings growth of 1.60% over the past 10 years.
Tribune Media Co. (TRCO, Financial)
Klarman purchased 2,996,042 shares of Tribune Media Co., giving it 1.03% portfolio weight. The stock’s second quarter share price averaged $38.
Tribune Media Co. has a market cap of $3.03 billion; its shares were traded around $34.62 with a P/E ratio of 5.68 and P/S ratio of 1.64. The trailing 12-month dividend yield of Tribune Media Co. stocks is 2.88%. The forward dividend yield of Tribune Media Co. stocks is 2.89%.
Sinclair Broadcast Group Inc. (SBGI, Financial)
Klarman purchased 2,571,302 shares of Sinclair Broadcast Group, giving it 0.74% portfolio weight. The stock’s second quarter share price averaged $30.
Sinclair Broadcast Group Inc. has a market cap of $2.85 billion; its shares were traded around $27.90 with a P/E ratio of 5.19 and P/S ratio of 1.04. The trailing 12-month dividend yield of Sinclair Broadcast Group Inc. stocks is 2.58%. The forward dividend yield of Sinclair Broadcast Group Inc. stocks is 2.58%. Sinclair Broadcast Group Inc. had an annual average earnings growth of 16.70% over the past five years.
Translate Bio Inc. (TBIO, Financial)
Klarman purchased 1,923,076 shares of Translate Bio Inc., giving it 0.22% portfolio weight. The stock’s second quarter share price averaged $12.
Translate Bio Inc. has a market cap of $462.700 million; its shares were traded around $10.25.
Klarman purchased 98,932 shares of Shire PLC, giving it 0.15% portfolio weight. The stock’s second quarter share price averaged $161.
Shire PLC has a market cap of $52.18 billion; its shares were traded around $169.72 with a P/E ratio of 11.21 and P/S ratio of 3.47. The trailing 12-month dividend yield of Shire PLC stocks is 0.61%. The forward dividend yield of Shire PLC stocks is 0.62%. Shire PLC had an annual average earnings growth of 15.8% over the past five years.
See Seth Klarman (Trades, Portfolio)’s portfolio here.
