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.
Coho Capital 2Q20 Commentary: Podcasts, The New Talk Radio
Coho Capital commentary for the second quarter ended June 30, 2020. Q2 2020 hedge fund letters, conferences and more Dear Partners, Coho Capital returned 46.6% during the first half of the year compared to a loss of 3.1% in the S&P 500. Many of our holdings, such as Netflix, Amazon, and Spotify, were perceived beneficiaries Read More
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)