Billionaire Seth Klarman cuts Amazon

Seth Klarman

In the third quarter of 2023, Billionaire Seth Klarman’s Baupost Group sold his entire stake in Amazon but bought shares in four other companies.

American billionaire investor Seth Klarman is widely regarded as one of the world’s most successful and respected fund managers.

With a career spanning over three decades, Klarman has built a reputation as a disciplined and value-driven investor.

He is known for his rigorous research process, long-term investment horizon, and focus on risk management.

Born in 1957, Klarman attended Cornell University and later Harvard Business School, where he studied under legendary value investor Benjamin Graham.

After graduating, he worked briefly for Mutual Shares before founding his own investment firm, The Baupost Group, in 1982.

Over the years, Baupost has grown into one of the world’s largest and most successful hedge funds, with over $30 billion in assets under management.

Despite his remarkable track record, Klarman remains relatively unknown outside investment circles. He eschews publicity and rarely grants interviews.

Klarman’s investment philosophy is rooted in the teachings of Benjamin Graham, the father of value investing.

He believes that a margin of safety is essential for any investment and that it is possible to find undervalued securities in any market environment.

Klarman is also known for his long-term approach to investing, often holding positions for several years and waiting for the market to recognise the underlying value of his investments.

This approach has paid off in spades for Klarman and his investors. Since the founding of The Baupost Group in 1982, the firm has achieved an annualised return of 19%.

The firm’s success has been driven by Klarman’s ability to identify opportunities where others see risk and his willingness to hold positions for extended periods.

The Baupost Group’s portfolio

In the third quarter of 2023, Klarman added shares in four new companies to the Baupost Group portfolio – Clarivate, Tower Semiconductor, Jacobs Solutions, and Liberty Media Corp. 

Baupost sold its entire stake in Amazon and Union Pacific, both of which the company bought in the previous quarter.

It initially sold its stake in Amazon in Q1 2023 but bought around $125.66 million of the tech giant’s shares in Q2.

The company also further reduced its stake in Google-owner Alphabet by 7%, but it still comprises almost 10% of Baupost’s portfolio.

Baupost reduced its stake in nine other companies during the three months through September 2023.

The company added to its stake in four companies. Notably, Baupost added 5,816.81% to its stake in CRH Plc, a building material company the firm bought in Q2 2023.

These movements brought Baupost’s portfolio to a value of $5.14 billion with 31 holdings.

The table below shows how the Baupost Group portfolio changed in Q3 2023 –

Stock% of portfolioActivityValue
LBTYK – Liberty Global Inc. C15.27Reduce 5.98%$785,292,000
VRTV – Veritiv Corp.10.92No change$561,478,000
GOOG – Alphabet Inc. CL C9.82Reduce 7%$505,188,000
FIS – Fidelity National Information Services7.48Add 2.73%$384,691,000
LSXMK – Liberty SiriusXM Series C7.35No change$378,108,000
WTW – Willis Towers Watson plc6.32Add 72.40%$325,072,000
VSAT – Viasat Inc.5.81Reduce 0.70%$298,588,000
WBD – Warner Bros. Discovery Inc.5.33No change $274,053,000
LSXMA – Liberty Sirius XM Series A4.05No change$208,121,000
CRH – CRH plc3.56Add 5,816.81%$183,102,000
CLVT – Clarivate Plc2.94Buy$150,975,000
LBTYA – Liberty Global Inc.2.39No change$123,166,000
SSNC – SS&C Technologies Holdings Inc.2.35 Reduce 38.22%$120,770,000
DG – Dollar General1.91Add 283.06%$98,077,000
QRVO – Qorvo Inc.1.74Reduce 64.26%$89,323,000
JAZZ – Jazz Pharmaceuticals plc1.70No change$87,203,000
TSEM – Tower Semiconductor Ltd.1.36Buy$69,996,000
J – Jacobs Solutions Inc.1.29Buy$66,583,00
TBPH – Theravance Biopharma Inc.1.24No change$64,028,000
LLYVA – Liberty Media Corp. Series A Live1.23Buy$63,175,000
LLYVK – Liberty Media Corp. Series C Live1.19Buy$61,069,000
EDU – New Oriental Education & Technology1.16Reduce 75.16%$59,913,000
GTX – Garrett Motion Inc.0.92Reduce 77.03%$47,180,000
STX – Seagate Technology0.77No change$39,570,000
GTN – Gray Television Inc.0.51No change$26,019,000
HLF – Herbalife Nutrition Ltd.0.46Reduce 13.35%$23,690,000
ADV – Advantage Solutions Inc.0.34Reduce 42.22%$17,477,000
ATUS – Altice USA, Inc.0.30No change$15,613,000
ATRA – Atara Biotherapeutics Inc.0.28No change$14,465,000
TMQ – Trilogy Metals Inc.0.02Reduce 31.63%$1,141,000
FNCH – Finch Therapeutics Group Inc.0.01No change$574,000
Source: Dataroma


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