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PBF Energy Inc (PBF), Forward Pharma A/S (FWP), Atara Biotherapeutics Inc (ATRA): Seth Klarman’s Baupost Group Is Bullish on Healthcare and Energy Stocks

Seth Klarman’s Baupost Group disclosed last Monday three big stock purchases. The fund started new stakes in Forward Pharma A/S (NASDAQ:FWP) and Atara Biotherapeutics Inc (NASDAQ:ATRA), with 5.36 million shares and 2.49 million shares, respectively, and boosted its exposure to PBF Energy Inc (NYSE:PBF) by more than 50%, to 8.66 million shares. Baupost Group now owns more than 10% of each of these companies’ Common Stock.

Baupost Group is a Boston-based hedge fund founded in 1982 by Seth Klarman, and run by him ever since. As one of the largest hedge funds in the world, its resources to do the research on its investments are quite significant; so, trailing its picks is definitely not a bad idea. The fund last disclosed an equity portfolio (for the second quarter of 2014) worth more than $6.1 billion, with a big focus on technology stocks. Check out Billionaire Seth Klarman’s Top Picks for the second quarter.


PBF Energy Inc (NYSE:PBF) is a $2.53 billion market cap petroleum refiner and supplier of unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants and other petroleum products in the United States. It recently saw Baupost Group become the largest institutional investor (amongst those we track), following the purchase of more than 3 million shares, after the company announced estimate-beating third quarter profits. The fund now owns 8.66 million shares of Common Stock, which represent more than 10.3% of the company’s shares outstanding.

Another major institutional investor betting on PBF Energy Inc (NYSE:PBF) is Robert Joseph Caruso’s Select Equity Group, which last disclosed (by the end of the second quarter of the year) ownership of roughly 4.11 million shares of the company.

Baupost Group is also quite bullish on Forward Pharma A/S (NASDAQ:FWP) a $1.05 billion market cap Danish biopharmaceutical company preparing to initiate a Phase 3 clinical trial using FP187, a proprietary formulation of dimethyl fumarate, or DMF, for the treatment of multiple sclerosis patients. The company just recently went public, and Baupost started a stake in it with 5.36 million shares of Common Stock, or 11.72% of the shares outstanding.

Forward Pharma A/S (NASDAQ:FWP) started trading on October 15, when it offered 10.5 million American Depositary Shares (“ADSs”), representing the company’s ordinary shares, at a price to the public of $21.00 per ADS. Last Monday, the research firm RBC Capital Markets initiated coverage of the company with an “outperform” rating.

Atara Biotherapeutics Inc (NASDAQ:ATRA) is last, but not least. This $443.48 million market cap clinical-stage biopharmaceutical company that develops and commercializes therapeutics which focuses on muscle wasting conditions and oncology also saw Baupost initiate a position recently. Its 2.49 million shares of Common Stock represent 12.86% of the company’s outstanding stock.

Atara Biotherapeutics Inc (NASDAQ:ATRA) also went public recently, on October 16, pricing its initial public offering of 5 million shares of its Common Stock at a public offering price of $11.00 per share. Just a few hours ago, the company reported its third quarter financial results. Despite still losing money, Isaac Ciechanover, CEO, said that “Atara has made significant accomplishments this year (…) This past quarter we continued to advance our lead program, PINTA 745, and initiated the trial of our second clinical program, STM 434. Additionally, we entered into an exclusive option agreement with Memorial Sloan Kettering Cancer Center for the development and commercialization of allogeneic T cell therapies for the treatment of certain cancers and persistent viral infections.”

Mr. Klarman has been quite active in the healthcare segment, actually. About a month ago, he made public an increase in his stake in Keryx Biopharmaceuticals (NASDAQ:KERX), to 18.30 million shares, which represent almost 20% of the outstanding stock.

Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned

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