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 second quarter of 2023, Klarman added three new shares to the Baupost Group portfolio – Amazon, Dollar General, Union Pacific and CRH.
The firm sold its entire stake in Amazon in Q1 2023 but bought around $125.66 million of the tech giant’s shares in Q2.
The company reduced its stake in Google-owner Alphabet by almost 30%, but it still comprises 9% of Baupost’s portfolio.
The table below shows how the Baupost Group portfolio changed in Q2 2023 –
|Stock||% of portfolio||Activity||Value|
|LBTYK – Liberty Global Inc. C||14.46||Reduce 5.26%||$799,727,000|
|VSAT – Viasat Inc.||12.15||No change||$672,082,000|
|GOOG – Alphabet Inc. CL C||9.01||Reduce 29.60%||$498,370,000|
|LSXMK – Liberty SiriusXM Series C||8.79||No change||$486,075,000|
|VRTV – Veritiv Corp.||7.55||No change||$417,568,000|
|FIS – Fidelity National Information Services||6.70||Add 39.93%||$370,593,000|
|WBD – Warner Bros. Discovery Inc.||5.72||No change||$316,448,000|
|LSXMA – Liberty Sirius XM Series A||4.85||No change||$268,309,000|
|QRVO – Qorvo Inc.||4.83||Reduce 43.70%||$267,084,000|
|SSNC – SS&C Technologies Holdings Inc.||4.08||Add 13.62%||$225,458,000|
|WTW – Willis Towers Watson plc||3.84||Add 5.09%||$212,507,000|
|GTX – Garrett Motion Inc.||3.57||Add 629.25%||$197,354,000|
|EDU – New Oriental Education & Technology||2.94||Reduce 23.99%||$162,651,000|
|AMZN – Amazon.com Inc.||2.27||Buy||$125,660,000|
|LBTYA – Liberty Global Inc.||2.19||No change||$121,295,000|
|JAZZ – Jazz Pharmaceuticals plc||1.51||Add 40.74%||$83,518,000|
|TBPH – Theravance Biopharma Inc.||1.39||Reduce 28.79%||$76,789,000|
|DG – Dollar General||0.74||Buy||$41,087,000|
|STX – Seagate Technology||0.67||Add 340.93%||$37,122,000|
|UNP – Union Pacific||0.65||Buy||$35,809,000|
|GTN – Gray Television Inc.||0.54||No change||$29,629,000|
|HLF – Herbalife Nutrition Ltd.||0.47||No change||$25,874,000|
|ADV – Advantage Solutions Inc.||0.45||Reduce 3.18%||$24,924,000|
|ATRA – Atara Biotherapeutics Inc.||0.28||Add 7.12%||$15,736,000|
|ATUS – Altice USA, Inc.||0.26||No change||$14,419,000|
|CRH – CRH plc||0.06||Buy||$3,151,000|
|TMQ – Trilogy Metals Inc.||0.04||Reduce 20.24%||$2,022,000|
|FNCH – Finch Therapeutics Group Inc.||0.01||Reduce 0.01%||$574,000|