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In anticipation of hedge funds reporting first quarter holdings this week, I have below a look at the worst performing stocks that Seth Klarman's Baupost Group held as of 12/31/2012. Famous for his contrarian investment style, these stocks can be thought of two different ways. On one hand, these five represent the most contrarian stocks an investor will find in Baupost's portfolio and ones that can be purchased below the price Klarman purchased them for. On the other hand, these five are 2013's worst performers and ones that could have been dropped since the end of 2012, and/or shares that could fall even further. Either way, they are presented as a screen for any investor following Klarman that is looking to pick up the fund's most recent holdings at a discount.

#1 Allied Nevada Gold (ANV)

Allied is the worst performing stock that Baupost held as of 12/31/2012. Year to date, Allied has dropped 68.50% and currently trades for $9.49 per share. Luckily for Baupost investors, Klarman cut his holdings in this miner by 44% in the fourth quarter last year. At the end of 2012, Baupost held over 2 million shares that was previously valued at $85 million and represented 3% of the portfolio. Allied Nevada Gold is a gold and silver mining company with properties in Nevada.

#2 AVEO Pharmaceuticals (AVEO)

AVEO Pharmaceuticals is the second worst performing stock that Baupost held as of 12/31/2012. Year to date, AVEO shares have fallen 65.96% and currently trade for $2.74 per share. Baupost decreased its holdings in AVEO in 4Q2012 by 4% to 4.9 million shares. The holding was worth $39.468 million at the end of 2012 and accounted for only 1% of the Baupost portfolio. AVEO is cancer therapeutics company that discovers, develops and commercializes targeted cancer therapies.

#3 NovaGold Resources (NG)

NovaGold is the third worst performing stock that Baupost held as of 12/31/2012. Year to date, NovaGold has dropped 44.35% and currently trades for $2.51 per share. Baupost increased its holdings in NovaGold in 4Q2012 by 3% to 21.688 million shares. The holding was worth $97.8 million at the end of 2012 and accounted for 3% of the Baupost portfolio. NovaGold is a gold miner that primarily holds interest in the Donlin Gold deposits in southwestern Alaska.

#4 Enzon Pharmaceuticals (ENZN)

Enzon is the fourth worst performing stock that Baupost held as of 12/31/2012. Year to date, Enzon has fallen 30.02% and currently trades for $3.10 per share. Baupost decreased its holdings in Enzon in 4Q2012 by 13% to 7.8 million shares. The holding was worth $34.7 million at the end of 2012 and accounted for 1% of the Baupost portfolio. Enzon Pharmaceuticals has a market cap of $135.45 million and is headquartered out of New Jersey.

#5 Idenix Pharmaceuticals (IDIX)

Idenix is the fifth worst performing stock that Baupost held as of 12/31/2012. Year to date, Idenix's stock has shed 24.95% and currently trades for $3.64 per share. Baupost increased its holdings in Idenix in 4Q2012 by 73% to 20.7 million shares. The holding was worth $100.4 million at the end of 2012 and accounted for 3% of the Baupost portfolio. Idenix is a biopharmaceutical company that engages in the discovery and development of drugs and treatment of human viral diseases.

Bottom Line

Klarman's Baupost Group will be reporting to the SEC its holdings as of 3/31/2013 on or before May 15th. For anyone interested, I will be posting a full report of the funds holdings shortly after they are reported. Thanks and good luck with your investments.

This list was created to help investors with ideas for new investments as well as for those wanting to keep up with the performance of Klarman and the Baupost Group. This list should only be used as a screen for potential investments. Due diligence and additional research is advised.

Source: Seth Klarman's Worst Performing Stock Picks Year-To-Date