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 (NYSE: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 (NYSEMKT: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?

(click to enlarge)Click to enlarge

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.