Seth Klarman dumps Google
In the second quarter of 2024, billionaire investor Seth Klarman’s Baupost Group made a notable shift in its investment portfolio by reducing its stake in Google by over 63% while acquiring shares in five other companies.
Klarman is widely recognised as one of the most successful and respected fund managers in the world.
With a career spanning more than three decades, he has established a reputation as a disciplined, value-driven investor who places a strong emphasis on rigorous research, long-term planning, and risk management.
Born in 1957, Klarman’s journey to becoming a financial powerhouse began with his education at Cornell University, followed by his studies at Harvard Business School.
At Harvard, he was deeply influenced by the teachings of Benjamin Graham, the legendary value investor who laid the groundwork for Klarman’s investment philosophy.
After completing his education, Klarman briefly worked for Mutual Shares before taking a bold step to establish his own investment firm, The Baupost Group, in 1982.
Over the years, Baupost has evolved into one of the world’s largest and most successful hedge funds, managing over $30 billion (R534.82 billion) in assets.
Despite his extraordinary success, Klarman maintains a low profile outside of investment circles, avoiding publicity and rarely granting interviews.
This reserved approach has not diminished his influence in the financial world, where he is regarded as a leading figure in value investing.
Klarman’s investment philosophy is deeply rooted in the principles taught by the father of value investing, Benjamin Graham.
Klarman is a firm believer in the importance of maintaining a margin of safety in every investment, which involves purchasing securities at prices significantly below their intrinsic value.
Like Graham, Klarman also emphasises a long-term approach, often holding positions for several years, patiently waiting for the market to recognize the true value of his investments.
This patient, calculated approach has proven highly successful. Since Baupost’s founding in 1982, the firm has delivered an impressive annualized return of 19%.
Klarman’s ability to identify opportunities in seemingly risky situations and his commitment to holding positions for extended periods have been key drivers of the firm’s remarkable performance and enduring success.
The Baupost Group’s portfolio
In the second quarter of 2024, Klarman added shares in five new companies to the Baupost Group portfolio – Humana, Solventum, WillScot Mobile Mini, Capri Holdings, and Verisign.
Baupost also sold its entire stake in three companies, Warner Bros. Discovery, Altice USA, and Soundhound Ai.
Notably, the company further reduced its stake in Google-owner Alphabet by 63.84%, and it now makes up 5.56% of Baupost’s portfolio, almost half of what it was at the start of 2023 at 10.88%.
Baupost reduced its stake in seven other companies and increased its stake in 9 companies during this quarter.
These movements brought Baupost’s portfolio to a value of $3.53 billion (R63 billion), with 23 holdings, a decline from the $5.53 billion (R98 billion) value it had in Q2 of 2023.
The table below shows how the Baupost Group portfolio changed in Q2 2024.
| Stock | % of portfolio | Activity | Value |
| Liberty Global Ltd CL C | 21.39 | No change | $755,252,000 |
| Willis Towers Watson plc | 12.27 | Add 6.23% | $433,225,000 |
| CRH plc | 8.98 | Add 55.99% | $316,911,000 |
| Fidelity National Information Services | 7.49 | Reduce 37.10% | $264,457,000 |
| Clarivate Plc | 6.27 | Add 27.23% | $221,510,000 |
| Alphabet Inc. CL C | 5.56 | Reduce 63.84% | $196,184,000 |
| Viasat Inc. | 4.95 | Reduce 8.46% | $174,744,000 |
| Humana Inc. | 4.44 | Buy | $156,933,000 |
| Jazz Pharmaceuticals plc | 3.85 | Add 52.84% | $136,000,000 |
| WESCO International Inc. | 3.61 | Add 290.33% | $127,292,000 |
| Liberty Global Ltd CL A | 3.55 | No change | $125,396,000 |
| Solventum Corp | 2.73 | Buy | $96,242,000 |
| WillScot Mobile Mini Hldgs Corp. | 2.63 | Buy | $92,971,000 |
| Eagle Materials Inc. | 2.11 | Add 30.57% | $74,394,000 |
| Fortrea Holdings Inc | 2.08 | Add 933.70% | $73,296,000 |
| Jacobs Solutions Inc. | 1.96 | Reduce 2.48% | $69,047,000 |
| Herbalife Nutrition Ltd. | 1.51 | Add 128.27% | $53,244,000 |
| GDS Holdings Ltd | 1.12 | Add 63.46% | $39,482,000 |
| Theravance Biopharma Inc. | 1.01 | Reduce 36.31% | $35,616,000 |
| Capri Holdings Ltd | 0.94 | Buy | $33,080,000 |
| Liberty SiriusXM Series C | 0.66 | Reduce 75.67% | $23,459,000 |
| Verisign Inc. | 0.53 | Buy | $18,805,000 |
| Liberty Sirius XM Series A | 0.38 | Reduce 77.59% | $13,294,000 |
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