Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

What You Need To Know About Baupost Group’s Top Stock Picks: from Allergan to EMC

Page 1 of 2

Baupost Group is one of the top hedge funds of the world, with approximately $27 billion in assets under management. The Boston-based firm is run by its founder, Seth Klarman, a Harvard Business School graduate and famed author of the fundamental investing bible, Margin of Safety. Quite recently, Baupost filed its 13F for the fist quarter of fiscal 2016, disclosing its long equity stakes as of March 31. The equity portfolio was valued at $6.92 billion at the time, up from $5.51 billion at the end of the previous quarter. While diversified, the portfolio had a focus on information technology and energy stocks, which accounted for roughly 40% and 28% of the total holdings, respectively. So, let’s take a look into the fund’s top picks for the second quarter of 2016, and into some recent events involving these companies.

Our research determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor beat the S&P 500 by around 95 basis points per month (see more details here).

#5 Allergan plc Ordinary Shares (NYSE:AGN)

– Number of shares owned by Baupost as of March 31: 1.72 Million

– Value of Baupost’s stake as of March 31: $461.4 Million

The fifth spot in Klarman’s list was occupied by a newcomer: Allergan plc Ordinary Shares (NYSE:AGN). The new stake accounted for more than 6.6% of the fund’s equity portfolio, and made it one of the top 10 hedge fund investors of record as of March 31. An ever larger stake was the one held by John Paulson’s Paulson & Co, which last disclosed ownership of 5.41 million shares of the company, worth roughly $1.45 billion by the end of the first quarter. Since the first quarter ended, shares of Allergan have fallen more than 14.3%, mostly on the back of the cancellation of the Pfizer Inc. (NYSE:PFE) deal. Last week, however, shares recuperated some of the lost ground after the company delivered first quarter EPS of $3.04, beating the Street’s consensus by $0.01 – even though revenue of $3.8 billion missed estimates by $160 million. In addition, the company’s Board authorized up to $10 billion in new stock repurchases; about half of that could be spent over the next six months, if market conditions are favorable, the company said.

Follow Allergan Plc (NYSE:AGN)
Trade (NYSE:AGN) Now!

#4 Antero Resources Corp (NYSE:AR)

– Number of shares owned by Baupost as of March 31: 21.5 Million

– Value of Baupost’s stake as of March 31: $534.8 Million

Even in spite of a 12% increase in Baupost’s stake, Antero Resources Corp (NYSE:AR) remained in the same position as a quarter earlier. However, the value of the stake rose considerably, as the shares gained 14.08% over the first quarter. According to our data, Baupost was, by far, the largest hedge fund shareholder of record in the company, trailed from far behind by Bob Peck and Andy Raab’s FPR Partners, which last declared holding 9.3 million shares. Antero’s stock continued to surge over the second quarter of the year, posting a 6.8% return so far. However, the shares experienced considerable weakness toward the end of April, following a first quarter earnings miss announced on April 27. But, over the past few days, the tumble was somewhat offset by a recuperation in energy prices, which helped the sector as a whole.

Follow Antero Resources Corp (NYSE:AR)
Trade (NYSE:AR) Now!

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...
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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!