In this article, we discuss the 12 Cheap Value Stocks to Buy Now According to Seth Klarman.
Seth Klarman, one of the most esteemed figures in value investing, has achieved success through his steadfast commitment to holding investments for the long term, allowing intrinsic value to be fully realized. This principle defines his core philosophy behind his success in deep value investing.
Seth Klarman, as CEO and Portfolio Manager of The Baupost Group, has managed the company’s investments since its founding in May 1982. As of March 2023, Baupost has $27.4 billion under management, securing it the 11th spot on the list of the largest hedge funds in the world. The Boston-based firm offers its services to both individual and institutional clients globally.
Furthermore, his rare, out-of-print book “Margin of Safety,” which is popular among value investors, extends his influence beyond the trading floor. It can fetch as much as $1,700 on Amazon. Interestingly, Klarman’s name is included in Baupost’s name, which is derived from the initials of its original founders. This dates back to when a Harvard professor called the freshly graduated Klarman to help manage the start-up fund, marking the start of a remarkable investing legacy.
With this backdrop, let’s move to our list of the 12 Cheap Value Stocks to Buy Now According to Seth Klarman.
Seth Klarman of Baupost Group
Methodology
To curate our list of the 12 Cheap Value Stocks to Buy Now According to Seth Klarman, we scanned Baupost Group’s investment portfolio to extract stocks trading under a forward price-to-earnings multiple of 21x, as of the time of writing. We ranked the shortlisted stocks in ascending order based on Baupost Group’s stake in them. We also considered hedge fund sentiment surrounding these stocks as of Q1 2025, using Insider Monkey’s hedge fund database that tracks over 1,000 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12. Clarivate Plc (NYSE:CLVT)
Baupost Group Stake Value: $42,357,000
Forward Price-to-Earnings: 5.85
Number of Hedge Fund Holders: 25
With a low price-to-earnings multiple and a significant presence in Seth Klarman’s investment portfolio, Clarivate Plc (NYSE:CLVT) earns a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Seth Klarman.
On July 30, 2025, Clarivate Plc (NYSE:CLVT) appointed Maroun S. Mourad to the role of President of its Intellectual Property segment, effective September 8, 2025. The newly appointed President will succeed Gordon Samson, who will be retiring at year-end after decades in the IP industry.
Mourad brings over 25 years of experience in data analytics, software, and technology-enabled services. He most recently led the Claims Solutions division at Verisk Analytics, handling product portfolios, services, and acquisitions globally. Clarivate Plc (NYSE:CLVT)’s CEO sees the appointment as a strategic move to drive long-term, predictable growth in the IP segment.
Clarivate Plc (NYSE:CLVT)’s IP segment offers trusted data, software, and expertise across the full lifecycle of intellectual property assets.
With its data, insights, workflow solutions, and expert services across various sectors, Clarivate Plc (NYSE:CLVT) operates as a leading global provider of transformative intelligence. It is included in our list of cheap value stocks to buy.
11. Herbalife Ltd. (NYSE:HLF)
Baupost Group Stake Value: $65,593,000
Forward Price-to-Earnings: 4.24
Number of Hedge Fund Holders: 31
Herbalife Ltd. (NYSE:HLF) is included in our list of the 12 Cheap Value Stocks to Buy Now According to Seth Klarman.
On August 6, 2025, Herbalife Ltd. (NYSE:HLF) reported its results for Q2 2025. The company recorded net sales of $1.3 billion, which were down 1.7% year-over-year and flat on a constant currency basis. Meanwhile, its adjusted EBITDA of $173.6 million surpassed guidance. As such, HLF increased its full-year 2025 net sales and adjusted EBITDA outlook and lowered Capex forecasts.
Herbalife Ltd. (NYSE:HLF)’s management expressed increasing confidence following the July launches of MultiBurn, a multifunctional weight-loss supplement, and the beta release of the AI-assisted Pro2col digital platform. Over 7,000 distributors are already engaged ahead of a Q4 U.S. and Puerto Rico rollout. During the quarter, the company’s distributor growth remained strong, with Latin America leading the segment with a 16% YoY growth.
Ahead of the earnings release, Mizuho lifted its price target on Herbalife Ltd. (NYSE:HLF) from $8 to $9, maintaining a ‘Neutral’ rating. The company also maintained its financial health steady at the quarter-end, redeeming $50 million of its 7.875% Senior Notes due 2025, maintaining leverage at 3.0x.
Offering science-backed nutrition products and a global distributor-driven business model, Herbalife Ltd. (NYSE:HLF) operates as a leading health and wellness company. It is included in our list of cheap value stocks to buy.
10. ICON Public Limited Company (NASDAQ:ICLR)
Baupost Group Stake Value: $70,871,000
Forward Price-to-Earnings: 11.89
Number of Hedge Fund Holders: 44
With a low price-to-earnings multiple and a significant presence in Seth Klarman’s investment portfolio, ICON Public Limited Company (NASDAQ:ICLR) earns a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Seth Klarman.
On July 25, 2025, Mizuho raised its price target on ICON Public Limited Company (NASDAQ:ICLR) from $173 to $225, maintaining an ‘Outperform’ rating. The price revision is attributed to the company’s stronger-than-expected operational metrics. Eliminating earlier fears of a slowdown, its quarterly booking trends remained stable. Furthermore, improved cancellation rates and easing trial delays boosted confidence in the company’s execution.
Moreover, the analyst feels enhanced earnings visibility for 2026 for ICON Public Limited Company (NASDAQ:ICLR), indicating a stronger growth trajectory, in spite of macro uncertainties in the clinical research market. Thus, the analyst’s price revision reflects both the short-term momentum and long-term strategic positioning, increasing the possibility of the company capturing a larger share of clinical trial demand in the coming years.
ICON Public Limited Company (NASDAQ:ICLR) executes clinical research globally, offering outsourced development and commercialization services. It is included in our list of cheap value stocks to buy.
