Seth Klarman’s Baupost Group is trading in deep value stocks for flawed commodity ones, or so it would seem. Unless, of course, you’re one of those that believes commodities can be considered deep value. In which case, you probably shouldn’t be reading this to begin with.
Now to the fun - Klarman added 47% to his Cheniere Energy (LNG) position, which is still the fund's largest holding - making up 18% of the portfolio.
It kept the Viasat (VSAT) position steady - 2nd largest - and added Alcoa (AA) to the portfolio ti make it the 3rd largest holding.
With that - Klarman's exposure to the materials industry goes from nil last quarter to 14%. And Energy stocks still make up 39% of his portfolio.
Top 5 - LNG VSAT AA PXD AR
Top 5 new adds - AA (3rd largest holding) PYPL (6th) FOX (9th) OLN (14th) AER (16th)
Top increases in stakes - LNG (+47%, top holding) AR (+100%, 5th), ATRA (+11%, 10th)
Top stake reductions - MU (-94%, was 5th largest holding) OCN (-32%, was 16th)