Seth Klarman adds four new shares

In the fourth quarter of 2024, billionaire investor Seth Klarman’s Baupost Group continued slashing its stake in Google and added four new companies to its investment portfolio.

This was revealed in Baupost Group’s 13F filing with the US Securities and Exchange Commission, a mandatory report for all investment firms managing assets exceeding $100 million (around R1.8 billion).

Klarman is widely regarded as one of the most accomplished and respected fund managers in the investment world.

With a career spanning over three decades, he has built a reputation as a disciplined, value-focused investor who prioritizes thorough research, long-term strategy, and effective risk management.

Born in 1957, Klarman’s path to financial success began with his studies at Cornell University, followed by Harvard Business School.

At Harvard, he was heavily influenced by Benjamin Graham, the pioneer of value investing, whose principles became the foundation of Klarman’s investment strategy.

After completing his education, Klarman briefly worked at Mutual Shares before making a bold move to establish his own firm, The Baupost Group, in 1982.

Since then, Baupost has grown into one of the world’s largest and most successful hedge funds, overseeing more than $30 billion (over R550 billion) in assets.

Despite his remarkable success, Klarman keeps a low profile, rarely seeking media attention or giving interviews.

His reserved nature, however, has done little to diminish his influence, as he remains one of the most respected figures in value investing.

Klarman’s investment philosophy is deeply rooted in the teachings of Benjamin Graham.

He strongly believes in the importance of a margin of safety – purchasing assets well below their intrinsic value to minimise risk.

Like Graham, he takes a long-term approach, often holding investments for years while waiting for the market to recognize their true worth.

This patient, methodical strategy has paid off tremendously. Since Baupost’s inception in 1982, the firm has consistently delivered an impressive annualized return of 19%.

Klarman’s talent for spotting undervalued opportunities in seemingly uncertain markets and his commitment to long-term investments have been major factors in Baupost’s enduring success.

The Baupost Group’s portfolio

In the fourth quarter of 2024, Klarman added shares in four new companies to the Baupost Group portfolio – Ferguson Enterprises, Sunrise Communicat Cl A, Humana, and Genuine Parts

The company also increased its stake in Canadian-American multinational fast food holding company Restaurant Brands International by over 10,000%.

He also reduced his stake in 6 companies – including Liberty Global, Dollar General, and Google – and sold three others – Fidelity National Information Services, Fortrea Holdings, and Jacobs Solutions.

He continued to slash his stake in Google, reducing his position by 2.7% during the last quarter of 2024.

During the second quarter of 2024 he reduced his share in the company by 63.84%, and during the fourth quarter of 2023, he cut his share by 23.02%.

However, Google remains one of Baupost’s biggest shares, making up 7.94% of the company’s portfolio.

Baupost reduced its stake in seven other companies and increased its stake in nine companies during this quarter.

These movements brought Baupost’s portfolio to a value of $3.42 billion (R63.1 billion), with 21 holdings, a decrease from $4.59 billion (R84.59) a year ago.

The table below shows how the Baupost Group portfolio changed in the fourth quarter of 2024.

Source: Dataroma