“We’re witnessing our second tech bubble in 15 years,” warned Greenlight Capital’s David Einhorn back in April, joining a growing chorus of investors and economists seeing technology prices soar to unprecedented numbers and wondering when the other shoe will drop.
Ahead of David Einhorn on the impending tech bubble curve was Seth Klarman. In March, the Financial Times obtained a letter in which the Baupost Group founder voiced his concerns. “On almost any metric, the US equity market is historically quite expensive. A sceptic would have to be blind not to see bubbles inflating in junk bond issuance, credit quality, and yields, not to mention the nosebleed stock market valuations of fashionable companies like Netflix and Tesla Motors,” he wrote.
Despite Klarman’s concerns, however, there’s one tech company about which he appears quite confident: Micron Technology (NASDAQ:MU).
The billionaire first opened a position in the iBillionaire Index holding in Q2 2013, increasing his stake by Q3 before scaling back a bit in Q4. As of December 2014, he held 51,655,434 MU shares. And according to his most recent 13F report filed with the SEC today, he has maintained his position entirely during the first quarter of 2014 as well.
Micron remains Klarman’s top allocation, comprising 29.54% of his fund and ahead of other significant holdings Theravance (NASDAQ:THRX), which composes 15.49% of his holdings, and Cheniere Energy (NYSEMKT:LNG), 7.57% of his portfolio and a new addition.
Are we in the midst of a tech bubble? Perhaps. But not every company is inflating. Case in point: Klarman’s actions with respect to Micron speak louder than his words.