Seth Klarman’s Baupost Group Continues to Bet on Tech

On Wednesday, May 14th, Seth Klarman’s Baupost Group, presented its Form 13F Filing for the first quarter of 2014 at the U.S. Securities and Exchange Commission. Over the three months ending on March 31st, the fund started only 4 new stock positions, but increased its stakes in several of its preexisting holdings. So, let’s take a look at Mr. Klarman’s portfolio for Q1 2014:

BAUPOST GROUP

Baupost Group’s strong focus on technology stocks continued through the first quarter, with tech stocks accounting for more than 53% of its portfolio’s value. Its most valuable position –which remained unchanged in relation to the previous quarter, is that in  Micron Technology, Inc. (NASDAQ:MU), a $27.4 billion market cap manufacturer and marketer of DRAM, NAND Flash memory, CMOS image sensors and other semiconductor components. The 51.65 million shares that the fund owns (worth more than $1.1 billion) account for 29% of its portfolio.

The second-runner position, however, changed hands, after Baupost boosted its bets on ViaSat, Inc. (NASDAQ:VSAT), another tech company; a $2.7 billion market cap provider of high-speed fixed and mobile broadband services, satellite and wireless networks and secure networking systems, products and services. The fund’s stake, worth more than $780 million, accounts for about 19% of its portfolio. Finally, displaced from its previous second-runner up position, is Theravance Inc (NASDAQ:THRX), a $3.18 billion market cap biopharmaceutical company of which the fund owns more than 20 million shares, valued at roughly $640 million (about 15% of its portfolio).

Interestingly enough, Mr. Klarman’s fourth most valuable holding is a new one: Cheniere Energy, Inc. (NYSEMKT:LNG), a $13.6 billion market cap company engaged in liquid-natural-gas-related businesses. Over Q1 2014, the fund acquired 5.66 million shares of the company, worth more than $300 million, and accounting for 7.5% of its total equity portfolio.

Another acquisition that took place over the first quarter is that of Keryx Biopharmaceuticals (NASDAQ:KERX)’s stock. Baupost now owns about 6.3 million shares of the small-cap biopharmaceutical company, valued at more than $100 million.

Finally, Mr. Klarman’s fund bought, over Q1, stock from two mid-cap tech companies: RF Micro Devices, Inc. (NASDAQ:RFMD) and TriQuint Semiconductor (NASDAQ:TQNT). The fund holds about $50 million in each one of these companies’ stock, and their combined valued stands for 2.5% of its equity portfolio’s value.

Seth Klarman’s Baupost Group is the world’s 11th largest hedge fund, and not without a reason. His founder’s book, Margin of Safety, is somewhat of a bible amongst fundamental investors. His fund pretty much reflects Klarman’s investment philosophy, which emphasizes risk management. This has led it to retrieve some of the highest net gains in the industry. Its portfolio is worth more than $4 billion, and more than half of it is allocated at tech stocks. Another 28% is placed in healthcare stocks, and an extra 17%, in basic materials.

Disclosure: Javier Hasse holds no position in any stocks mentioned.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!