Founded in 1982, Baupost Group is one of the largest hedge funds in the world and has generated an average annual return of 19% since its inception. The fund’s equity portfolio is mainly invested in technology and health care stocks. Energy companies come in third, accounting for approximately 11% of the portfolio. As of the end of June, 2014, Baupost Group’s equity portfolio is valued at $6.14 billion, up from $4.13 billion at the end of the first quarter. The fund’s manager and one of its founders, Seth Klarman, is also the author of Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor, where he argues in favor of value investing. His net worth is roughly $1.4 billion, according to Forbes.
Baupost Group’s top equity position is Micron Technology, Inc. (NASDAQ:MU), a manufacturer and marketer of semiconductor devices. During the second quarter of 2014, Klarman has made no adjustments to the fund’s stake in the company, so Baupost continues to hold 51.6 million shares, which are now valued at approximately $1,7 billion. David Einhorn and his fund, Greenlight Capital, also hold a significant stake in the company, but have chosen to reduce their exposure by 9%. As a result, Greenlight Capital now holds 40.3 million Micron Technology, Inc. (NASDAQ:MU) shares worth in excess of $1,32 billion.
Next up is Idenix Pharmaceuticals Inc (NASDAQ:IDIX), a biopharmaceutical company with operations in the United States and France. Klarman has decided to hold on to all the shares he and Baupost have control over. In its latest 13F filing, the fund reported ownership of 53.3 million shares worth roughly $1.27 billion. Cliff Asness is extremely bullish on Idenix Pharmaceuticals Inc (NASDAQ:IDIX), having increased his fund’s holding of the stock by 5892% during the quarter. As of June 30, AQR Capital Management owns 3.02 million shares valued at $72.9 million.
Seth Klarman believes it is still a good time to invest in ViaSat, Inc. (NASDAQ:VSAT) and has boosted his fund’s investment in the company by 2% during the second quarter. As a result, Baupost Group now holds 11.5 million shares, which are valued at about $668 million. Charles Clough, on the other hand, is not so optimistic and has chosen to reduce his fund’s exposure to the stock. In its latest 13F filing, Clough Capital Partners has reported ownership of about 737,100 shares, down 16% compared to previous quarter.