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12 Cheap Value Stocks to Buy Now According to Seth Klarman

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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.

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…