Seth Klarman Increases Stake in Borders and Invests Heavily in SPACs

Aug.22.08 | About: Borders Group, (BGPIQ)

Somehow I missed this when it was released.

Baupost Group head and value investor extraordinaire (by that I mean 20% plus annual returns) Seth Klarman has increased his stake in Borders Group (BGP).

Baupost now holds 5.72 million shares, up from 4.9 million held in the May filing.

What is really odd about the filing is the number of "blank check coporations" or SPAC's Klarman owns shares in.

There is :

  • Capitol Acquisition Corp. (CLA)- 2.1m shares
  • BPW Acquisition Corp. (BPW)- 1.1 m shares (including warrants)
  • China Holdings Acquisition Corp. (HOL)- 1.05m shares
  • Columbus Acquisition Corp.- (BUS)- 750k shares
  • GHL Acquisition Corp (GHQ)- 3.5m shares (including warrants)
  • Global Consumer Acquisition Corp. (NYSE:GHC)- 5.9m shares (including warrants)
  • GSC ACquisition Corp. (GGA)- 850k shares
  • Hicks Acquisition Corp. (TOH)- 1.9m shares
  • Highlands Acquisition Corp. (HIA)- 525k shares
  • Prospect Acquisition Corp. (PAX)- 3.4m shares (including warrants)

There are a total of 22 SPAC's listed in the filing. I could not find any relationship to them other than the investment by Klarman and Baupost. It is odd and warrants more looking into. It does seem a bit odd that the SPAC's are alleged to be "gambling" for ordinary investors but here we have a true value investor, and a very good one going headfirst into these things..

August 13HR Filing