Seth Klarman’s Baupost Group Drastically Cuts Equity Positions

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Seth Klarman’s Baupost Group Drastically Cuts Equity Positions

Seth Klarman's Baupost Group Drastically Cuts Equity Positions

 

Seth Klarman’s Baupost Group has just filed its 13F for the third quarter with the SEC. Total assets listed are now at $3.3 billion. The famous value hedge fund manages approximately $24 billion. Therefore, the equity position is only a small portion of holdings. However, the fund’s decrease in equities from $3.8 billion in Q2 is significant.

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The author of this article predicted that Klarman would cut the firm’s equity stake several days ago. According to a letter we obtained, Seth Klarman increased his cash stake from approximately 28% in q2 to 35% in Q3.

 

 

Baupost group reduced stakes in some of their largest holdings. The fund’s stake in Hewlett-Packard Company (NYSE:HPQ) was reduced by approximately 46%, while the stake in BP Plc (NYSE:BP) (LON:BP) was reduced by approximately 16%. Klarman also reduced some other recent tech positions such as Microsoft Corporation (NASDAQ:MSFT) and Oracle Corporation (NASDAQ:ORCL), Oracle Corporation (NASDAQ:ORCL) was purchased during Q2. The large stake the firm holds in News Corp (NASDAQ:NWS) (NASDAQ:NWSA) was also reduced slightly, as was the stake in Theravance Inc (NASDAQ:THRX). Hess Corp. (NYSE:HES) which was purchased in Q2 was completely liquidated.

The firm made one purchase during the third quarter. Baupost bought 4,134,974 shares of Rovi Corporation (NASDAQ:ROVI). That would make Baupost Group the 7th largest shareholder of the company.

Baupost increased its stake in Idenix Pharmaceuticals, Inc. (NASDAQ:IDIX), as we reported several days ago. Additionally, Klarman increased the firm’s stake in Novacopper Inc (NYSE:NCQ) ViaSat, Inc. (NASDAQ:VSAT) and NovaGold Resources Inc. (NYSE:NG).

Disclosure: I have a long position in BP Plc, no other position in any securities mention.

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