Complete Seth Klarman And Baupost Group Portfolio Update

by: Profit Fan

Seth Klarman, famous investor and writer of one of the most expensive books on investing, "Margin of Saftey," just reported Baupost's holdings as of 3/31/13. As an alternative to shelling out $2,000 for his book and/or hunting for a public library that has managed to safeguard the gem, investors can learn a lot from Klarman by following the actual moves he and his fund have made throughout the year. March 15, is a busy date for all fund followers and in anticipation of this report, I highlighted his worst/most contrarian 2013 (YTD) investments prior to the release. Before we begin, anyone interested in this information can find it here.

New Holdings

  • Of the four new stocks Baupost added to the portfolio, the biggest purchase was in Elan Corp. (NYSE:ELN), worth $107.68 million at the end of March. This was the 8th-largest position for Baupost and worth 3% of the portfolio.
  • Baupost's second-largest new holding was in warrants of Citigroup (NYSE:C) worth $47.6 million.
  • DirectTV (DTV) was the third-largest purchase, and worth $11.7 million at the end of the first quarter.
  • The last new position was a smaller $9.7 million addition of American International (NYSE:AIG)'s warrants. Baupost already owned AIG's common and, in addition to the new warrants, the fund upped its AIG common share investment by adding 69% more shares. This position of AIG common was worth $460 million at the end of March and was the third-largest position in the Baupost portfolio.

Other Purchases

  • In addition to the new holdings, Baupost increased its stake in BP (NYSE:BP) by 57% to $725.3 million at the end of March. This is the fund's largest position and represents 23% of the portfolio.
  • Klarman also nearly doubled Baupost's position in Rovi Corp. (NASDAQ:ROVI) by adding 97% more shares of the company. This position is the fund's 6th-largest and was worth $174.7 million at the end of March.
  • The only other purchase for Baupost was an increase in the fund's investment of Idenix (NASDAQ:IDIX), up 26% more shares. Idenix was is the fifth-worst performer for Baupost in 2013, shares are down 24.95% YTD.

Sell Outs

  • Baupost sold out of its positions in Allied Nevada Gold (NYSEMKT:ANV), Genworth Financial (NYSE:GNW), and News Corp Class A Shares (NASDAQ:NWSA). In addition to selling out of the News Corp. As, Baupost also sold 69% of the companies B shares (NASDAQ:NWS).

Other Sells

  • Baupost sold 68% of its investment in Oracle (NASDAQ:ORCL). The remaining 3.3 million shares were worth $109.4 million at the end of March, the fund's 7th-largest holding.
  • Baupost also sold 7% of its stake in Alliance One (NYSE:AOI), 2% of its investment in Enzon Pharmaceuticals (NASDAQ:ENZN) and 21% in its holdings of Ituran Location and Control (NASDAQ:ITRN).

Other Holdings / No Change

  • Baupost's second-largest position in Viasat (NASDAQ:VSAT) was untouched and worth $532.8 million at the end of march. This position accounts for 17% of the fund's portfolio.
  • Baupost also made no changes to its holdings of Theravance (THRX), NovaGold (NYSEMKT:NG), Microsoft Calls (NASDAQ:MSFT), Syneron Medical (NASDAQ:ELOS), AVEO Pharmaceuticals (NASDAQ:AVEO), Central Pacific Financial Corp (NYSE:CPF) and NovaCopper (NCQ).

Below is a visual look at the portfolio's changes (from largest to smallest holding). Please let us know what you think! Do you own any of these companies?

Disclosure: I am long NG, NCQ, GNW. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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