12 High Growth Value Stocks to Buy According to Seth Klarman

In this article, we discuss 12 high growth value stocks to buy according to Seth Klarman.

Legendary value investor Seth Klarman informed his hedge fund investors on February 8 that the Federal Reserve’s actions in response to the financial crisis of 2008, along with the following decade of low interest rates, had contributed to the creation of a “financial fantasyland.” The leader of Baupost Group, Seth Klarman, stated in a letter to clients at the end of the year: 

“A consequence-free era of virtually unlimited low-cost capital had come to an end. A boom based on easy-money policies will inevitably contain the seeds of its own destruction.”

Despite the surge in major global stock indices this year due to declining inflation figures, a pessimistic perspective has emerged. This view opposes the belief that the Federal Reserve may soon stop increasing interest rates, which has bolstered investor confidence. Seth Klarman said that the sudden spike in interest rates last year is like kryptonite, as it finally led to the deflation of the “everything bubble.” This included the decline of investments in unprofitable “growth” companies that had risen during the pandemic but had little fundamental worth. Regardless of the recovery of markets this year, Klarman cautioned that the decline in markets from last year still has potential to continue, and there may be a risk of a sovereign debt crisis in the future.

He further wrote in the letter to clients at year-end: 

“Time spent on due diligence came to seem to them a hindrance to maximal capital deployment, and the usual warning signs of excess — financial profligacy, a proliferation of dubious business models, and obvious red flags — were mocked or ignored.” 

Despite dire warnings about the stock market, in the final quarter of last year, Seth Klarman significantly increased his firm’s holdings in Amazon.com, Inc. (NASDAQ:AMZN), among other major technology companies. Klarman also boosted his stake in Alphabet Inc. (NASDAQ:GOOG) by 190%, while his ownership in Meta Platforms, Inc. (NASDAQ:META) increased by 151%.

Our Methodology 

We selected the stocks from the Q4 portfolio of Baupost Group which exhibit the highest average 3-year revenue growth between 2019 and 2021. Not all of these stocks are pure “value” stocks, but Klarman, who is a pure value investor, having huge stakes in these companies makes them worthy of attention and being treated as value plays in the long-term context. The list is ranked in the ascending order of Seth Klarman’s stake value in each firm. 

Seth Klarman of Baupost Group

High Growth Value Stocks to Buy According to Seth Klarman

12. Herbalife Nutrition Ltd. (NYSE:HLF)

Number of Hedge Fund Holders: 24

Baupost Group’s Stake Value: $29,760,000

3-year Revenue Growth: 18.9%

Herbalife Nutrition Ltd. (NYSE:HLF) is a California-based provider of health and wellness products in the areas of weight management, targeted nutrition, energy, sports, fitness, and outer nutrition. In Q4 2022, Seth Klarman added Herbalife Nutrition Ltd. (NYSE:HLF) to his portfolio by acquiring 2 million shares worth nearly $30 million. On February 14, Herbalife Nutrition Ltd. (NYSE:HLF) reported a Q4 non-GAAP EPS of $0.53, beating market estimates by $0.19. The revenue of $1.2 billion outperformed Wall Street consensus by $70 million. 

On February 3, BofA analyst Anna Lizzul initiated coverage of Herbalife Nutrition Ltd. (NYSE:HLF) with an Underperform rating and a $14 price target. According to BofA, Herbalife Nutrition Ltd. (NYSE:HLF)’s multi-level marketing (MLM) business model is the biggest danger to its operations because it is harder to see the sales channel of direct sellers compared to retail-based companies. Furthermore, the firm stated that there is still a risk for the company in emerging markets.

According to Insider Monkey’s third quarter database, 24 hedge funds were long Herbalife Nutrition Ltd. (NYSE:HLF), compared to 28 funds in the prior quarter. William Duhamel’s Route One Investment Company held the largest stake in the company, with 10.8 million shares worth $215.7 million. 

In addition to Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Meta Platforms, Inc. (NASDAQ:META), Herbalife Nutrition Ltd. (NYSE:HLF) is one of the high growth stocks that Seth Klarman is piling into. 

Here is what Bronte Capital has to say about Herbalife Nutrition Ltd. (NYSE:HLF) in its Q3 2021 investor letter:

“Herbalife is – as we have discussed many times before – a multi-level marketing scheme selling weight-loss shakes. The idea is simple. If I replaced six meals a week with low-calorie protein shakes and I walked an extra 15 km a week I would quickly lose 15-20kgs. It would be good for me. It is also well-nigh impossible to do.

One solution is to hire a personal trainer (usually of the opposite sex) and have them nag you. You will do tough stuff for an attractive member of the opposite sex. More realistically you could just have your friends nag you. And that is why this works so well as a multi-level marketing scheme. The person who sells you the shakes has an incentive to keep you on the diet.

We have looked at many distributors and we see a weight-loss program – implemented for (literally) millions of people – which works about as well as any weight-loss health program that ever existed. That still means it fails most of the time – but it works enough that we can be proud of owning this stock and the health benefits it provides. Herbalife, it turns out, grew well during COVID. This was initially a surprise to us – as we thought Herbalife depended on the personal touch to make the sale. But, instead, weight loss and associated social clubs moved online – and – in many cases were the main social outlet the customers had.”

11. Gray Television, Inc. (NYSE:GTN)

Number of Hedge Fund Holders: 29

Baupost Group’s Stake Value: $39,277,000

3-year Revenue Growth: 13.7%

Gray Television, Inc. (NYSE:GTN) was founded in 1891 and is headquartered in Atlanta, Georgia. It is a television broadcasting company that owns and operates television stations and digital assets in the United States. Seth Klarman increased his Gray Television, Inc. (NYSE:GTN) stake by 8% in Q4 2022, holding 3.51 million shares worth $39.2 million. 

On November 10, Barrington analyst James Goss reiterated an Outperform rating on Gray Television, Inc. (NYSE:GTN) but lowered the firm’s price target on the shares to $15 from $25. The analyst’s previous target was much higher, but his new target for 2023 is based on the company’s reduced political forecasts, new guidance indicating a steeper decrease in subscriber levels than previously seen, and a more cautious target multiple. He informed investors that these factors led to his more conservative price target.

According to Insider Monkey’s data, Gray Television, Inc. (NYSE:GTN) was part of 29 hedge fund portfolios at the end of Q3 2022, compared to 25 in the prior quarter. Anand Desai’s Darsana Capital Partners is the largest stakeholder of the company, with 4.5 million shares worth $65.7 million. 

10. Lithia Motors, Inc. (NYSE:LAD)

Number of Hedge Fund Holders: 45

Baupost Group’s Stake Value: $51,185,000

3-year Revenue Growth: 80.1%

Lithia Motors, Inc. (NYSE:LAD) operates as an automotive retailer in the United States. The company operates through three segments – Domestic, Import, and Luxury. Klarman’s Baupost Group owns 250,000 shares of Lithia Motors, Inc. (NYSE:LAD) worth $51 million as of Q4 2022. With average 3-year revenue growth exceeding 80%, it is one of the top high growth stocks in Klarman’s portfolio.

On February 15, Lithia Motors, Inc. (NYSE:LAD) declared a quarterly dividend of $0.42 per share, in line with previous. The dividend is payable on March 24, to shareholders of record on March 10. 

Guggenheim analyst Ali Faghri on February 16 maintained a Buy rating on Lithia Motors, Inc. (NYSE:LAD) but lowered the price target from $343 to $332, despite the company’s Q4 earnings falling short of Street expectations. The analyst believes that the market’s negative reaction to the company’s results was primarily due to a significant miss in sales, general, and administrative expenses, as well as a decline in new sales volumes, compared to its peers’ strong performance. While the firm has lowered its 2023 estimate, it is optimistic that earnings will hit a low point in 2023, and then gradually increase in 2024 before “significantly accelerating” in 2025.

According to Insider Monkey’s Q3 data, 45 hedge funds were long Lithia Motors, Inc. (NYSE:LAD), compared to 40 funds in the prior quarter. David Abrams’ Abrams Capital Management is the leading position holder in the company, with 2.35 million shares worth $504.4 million. 

Here is what Oakmark Select Fund has to say about Lithia Motors, Inc. (NYSE:LAD) in its Q1 2022 investor letter: 

“As is typical during periods of significant volatility, we added a new name to the portfolio. Lithia Motors (NYSE:LAD) is the largest franchised auto dealer group in the United States. The company has a long history of creating shareholder value through best-in-class operations and consistent acquisitions of smaller dealers at attractive returns. There is a long runway for management to continue creating value through such acquisitions. Management believes this will drive earnings per share to more than $50 by 2025, even as car prices return to pre-pandemic levels. Meanwhile, Lithia has a significant opportunity to further accelerate growth through Driveway, its online auto retailing platform. We believe Lithia’s existing nationwide infrastructure provides Driveway with significant competitive advantages in e-commerce, which smaller dealers will struggle to replicate. Driveway is not generating any earnings today, but it could become a major contributor over the next five to seven years. With the stock priced at less than 7x management’s 2025 EPS target and with substantial future growth potential from Driveway, we believe Lithia shares are a bargain today.”

9. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 269

Baupost Group’s Stake Value: $83,160,000

3-year Revenue Growth: 67.4%

Securities filings for the fourth quarter of 2022 reveal that Seth Klarman’s Baupost Group boosted its Amazon.com, Inc. (NASDAQ:AMZN) stake by 300%, holding 990,000 shares worth over $83 million. On February 2, the company reported a Q4 non-GAAP EPS of $0.03, falling short of market estimates by $0.14. Revenue over the period came in at $149.2 billion, up 8.6% year-over-year, beating Wall Street consensus by $3.43 billion. 

According to Loop Capital analyst Rob Sanderson, Amazon.com, Inc. (NASDAQ:AMZN)’s Q4 results indicate that the company’s retail business is making significant strides toward improving its unit economics. The analyst noted that if non-recurring charges for employee severance, impairment charges, and increased insurance liabilities are removed, the company’s North America operating margin would have been around 2.6% instead of the reported -0.3%. He maintained a Buy rating and a $140 price target on Amazon.com, Inc. (NASDAQ:AMZN) on February 14. However, the analyst also cautioned that AWS is experiencing more substantial margin compression and slowdown than previously anticipated, and the firm is adopting a more conservative outlook for this segment.

According to Insider Monkey’s Q3 data, 269 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN), compared to 252 stocks in the prior quarter. Ken Fisher’s Fisher Asset Management is a significant position holder in the company, with approximately 50 million shares worth $5.6 billion.

Diamond Hill Large Cap Strategy made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2022 investor letter:

“At Amazon.com, Inc. (NASDAQ:AMZN), recessionary and inflationary headwinds drove weaker demand and higher costs for its AWS (Amazon Web Services) and retail businesses. While overinvestment in the retail business during the pandemic and continued growth of investments in AWS could lead to near-term pressure on profitability, we believe Amazon’s competitive advantages will continue to grow and that the business has the potential to grow much faster than the overall economy in the coming years.”

8. Fidelity National Information Services, Inc. (NYSE:FIS)

Number of Hedge Fund Holders: 60

Baupost Group’s Stake Value: $146,217,000

3-year Revenue Growth: 34.2%

Fidelity National Information Services, Inc. (NYSE:FIS) is a Florida-based company that provides technology solutions for merchants, banks, and capital markets firms worldwide. It operates through Merchant Solutions, Banking Solutions, and Capital Market Solutions segments. Klarman boosted his stake in Fidelity National Information Services, Inc. (NYSE:FIS) by 251% in Q4 2022, holding 2.15 million shares worth $146.2 million.

On February 13, Fidelity National Information Services, Inc. (NYSE:FIS) reported a Q4 non-GAAP EPS of $1.71 and a revenue of $3.71 billion, beating Wall Street estimates by $0.01 and $20 million, respectively. 

According to a research note by UBS analyst Rayna Kumar on February 14, Fidelity National Information Services, Inc. (NYSE:FIS) has announced that it will be executing a tax-free spin-out of its Merchant Solutions business. However, the analyst believes that investors would have preferred a sale of the business rather than a spin-out. As a result, the analyst has lowered the firm’s price target on FIS from $86 to $78 while maintaining a Buy rating on the shares.

According to Insider Monkey’s Q3 data, 60 hedge funds were bullish on Fidelity National Information Services, Inc. (NYSE:FIS), compared to 67 in the prior quarter. Select Equity Group held the largest stake in the company, comprising 5.8 million shares worth $443.5 million. 

Diamond Hill Large Cap Strategy made the following comment about Fidelity National Information Services, Inc. (NYSE:FIS) in its Q4 2022 investor letter:

“In addition to SVB Financial and V.F. Corporation, we eliminated our positions in financial services technology company Fidelity National Information Services, Inc. (NYSE:FIS) and media and technology company Comcast Corporation. Several reasons factored into our decision to sell Fidelity National Information Services, including board and leadership changes, a strategic review, and a cooperation agreement with activist shareholder D.E. Shaw (and discussions with JANA Partners).”

7. Micron Technology, Inc. (NASDAQ:MU)

Number of Hedge Fund Holders: 74

Baupost Group’s Stake Value: $164,233,000

3-year Revenue Growth: 18.3%

Micron Technology, Inc. (NASDAQ:MU) was founded in 1978 and is headquartered in Boise, Idaho. The company designs, develops, and manufactures memory and storage products worldwide. It operates through four segments – Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit. As of Q4 2022, Seth Klarman owns 3.28 million shares worth $164.2 million, representing 2.67% of the total 13F securities. It is one of the top high growth stocks owned by Klarman. 

On February 10, Mizuho analyst Vijay Rakesh upgraded Micron Technology, Inc. (NASDAQ:MU) from Neutral to Buy and raised the price target from $48 to $72. The analyst cited improving structural trends that are expected to accelerate the path to supply/demand balance for memory as the main driver of the upgrade. According to the analyst, Micron Technology, Inc. (NASDAQ:MU), along with Western Digital and Seagate, are close to a cyclical bottom, with Q1 potentially marking the peak in inventories and a low point in revenue. 

According to Insider Monkey’s third quarter database, Micron Technology, Inc. (NASDAQ:MU) was part of 74 hedge fund portfolios, compared to 69 in the earlier quarter. Jim Simons’ Renaissance Technologies is the biggest stakeholder of the company, with 7.4 million shares worth $374 million. 

Here is what Claret Asset Management has to say about Micron Technology, Inc. (NASDAQ:MU) in its Q3 2022 investor letter:

“Inflation is still higher than interest rates… not an incentive to save for most people. Either inflation must come down or interest rates have to go up further. Or both. And probably both. Now that they are taking the punch bowl away and the party is over, what happens next? For whatever reason, the stock market seems to always precede the economic reality: Micron reached a high of $98.45 on January 5th, 2022 and is trading at $50.00 today.”

6. New Oriental Education & Technology Group Inc. (NYSE:EDU)

Number of Hedge Fund Holders: 29

Baupost Group’s Stake Value: $201,745,000

3-year Revenue Growth: 38.1%

New Oriental Education & Technology Group Inc. (NYSE:EDU) is a Beijing-based provider of private educational services under the New Oriental brand in the People’s Republic of China. The company operates through Educational Services and Test Preparation Courses, Online Education and Other Services, Overseas Study Consulting Services, and Others segments. As per 13F filings from Q4 2022, Klarman owns 5.8 million shares of New Oriental Education & Technology Group Inc. (NYSE:EDU) worth $201.7 million. 

On January 17, New Oriental Education & Technology Group Inc. (NYSE:EDU) reported a FQ2 Non-GAAP EPADS of $0.10, beating market estimates by $0.01. The revenue of $638.2 million also outperformed consensus by $24.04 million. The company anticipates a growth in revenue in Renminbi as its functional currency for the third quarter of fiscal year 2023, with a projected increase of around 24% to 27%.

According to Insider Monkey’s Q3 data, 29 hedge funds were long New Oriental Education & Technology Group Inc. (NYSE:EDU), compared to 22 funds in the prior quarter. Fang Zheng’s Keywise Capital Management is a prominent stakeholder of the company, with nearly 4 million shares worth $95 million. 

Like Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Meta Platforms, Inc. (NASDAQ:META), New Oriental Education & Technology Group Inc. (NYSE:EDU) is one of the high growth stocks on Seth Klarman’s radar. 

Here is what Polen International Growth has to say about New Oriental Education & Technology Group Inc. (NYSE:EDU) in its Q3 2021 investor letter:

“The quarter’s leading detractors were Chinese companies that were impacted by the CCP’s regulatory crackdown and liquidity concerns at property developer Evergrande. New Oriental Education—the largest provider of private educational services in China—moved sharply lower in July after policymakers implemented new rules which effectively turned Chinese tutoring companies into non-profits. Looking at New Oriental Education, we closed our position as soon as government policy became clear and used the proceeds to allocate to existing holdings.”

5. Fiserv, Inc. (NASDAQ:FISV)

Number of Hedge Fund Holders: 59

Baupost Group’s Stake Value: $202,382,000

3-year Revenue Growth: 59.2% 

Fiserv, Inc. (NASDAQ:FISV) provides payment and financial services technology worldwide. The company operates through Acceptance, Fintech, and Payments segments. Securities filings for Q4 2022 reveal that Seth Klarman owns 2 million  Fiserv, Inc. (NASDAQ:FISV) shares worth $202.3 million, representing 3.3% of the total holdings. However, Klarman slashed his stake in the company by 44%. 

On February 15, Baird analyst David Koning increased Fiserv, Inc. (NASDAQ:FISV)’s price target to $138 from $132 and maintained an Outperform rating on the stock. The analyst believes that Fiserv has a stable and rapid growth profile and considers KKR’s departure to be beneficial. In recent years, Fiserv, Inc. (NASDAQ:FISV) has been one of the most dependable and least erratic companies on Baird’s list.

According to Insider Monkey’s third quarter data, 59 hedge funds were long Fiserv, Inc. (NASDAQ:FISV), with Harris Associates holding the leading stake in the company, comprising 21.2 million shares worth $2 billion. 

Artisan Partners made the following comment about Fiserv, Inc. (NASDAQ:FISV) in its Q3 2022 investor letter:

“While our list of potential candidates is filling up, we are being patient. We added two new positions in Q3: Fiserv, Inc. (NASDAQ:FISV) and Heineken. Fiserv is a provider of financial technology, core processing and payment processing services to financial institutions and merchants. The company reports three segments: acceptance (merchant acquiring), payments & networks (issuer processing and debit network), and fintech (core bank processing). Fiserv has strong market positions and scale across these businesses, but competitive intensity varies. In the acceptance segment, Fiserv owns Clover, a high-growth point-of-sale (POS) system forsmall and medium businesses, with similar annualized gross payment volume to Block’s Square. However, Fiserv is receiving little credit for Clover. The market is overly concerned about the competitive nature of merchant acquiring and legacy processors losing market share to new entrants. We believe Fiserv’s business is more resilient and will continue to grow in the medium term driven by its scale and Clover. Moreover, fintech and payments are good businesses that are undervalued by the market. Both businesses are in highly consolidated industries where scale advantages are critical, and revenues are sticky due to high switching costs. A high share of recurring revenue and profit, an attractive margin profile and high free cash flow conversion are characteristics that should provide downside protection, in our view. We started our position with shares selling for about 11X normalized operating profit. That is a below-average multiple for an above-average business.”

4. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 177

Baupost Group’s Stake Value: $207,930,000

3-year Revenue Growth: 66.8%

Seth Klarman raised his Meta Platforms, Inc. (NASDAQ:META) stake in the fourth quarter of 2022 by 151%, holding 1.72 million shares worth nearly $208 million, representing 3.39% of the total 13F securities. 

Financial Times recently reported that Meta Platforms, Inc. (NASDAQ:META) may be considering another round of layoffs due to performance reviews and budgetary uncertainty within the company, as noted by BofA analyst Justin Post. While the article did not provide specific numbers regarding the potential layoffs, Post believes that there is still room for further streamlining in the company. He pointed out that Meta Platforms, Inc. (NASDAQ:META) had around 58,000 employees two years ago, compared to an estimated 76,000 today. Additionally, Meta has the highest operating expense per employee among major online media platforms, according to BofA. Although Metaverse spending may be inflating operating expenses by up to 25%, the analyst believes that there is still potential to reduce Meta’s cost structure. Despite these concerns, BofA maintained a Buy rating and a $220 price target on Meta Platforms, Inc. (NASDAQ:META) shares on February 13. 

According to Insider Monkey’s Q3 data, 177 hedge funds were long Meta Platforms, Inc. (NASDAQ:META), compared to 185 funds in the last quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder of the company, with 11.8 million shares worth $1.60 billion. 

Vulcan Value Partners made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q4 2022 investor letter:

“During the quarter we sold Meta Platforms, Inc. (NASDAQ:META) after owning the business for over four years. The fundamentals of our investment case were based on the tremendous number of users that spent time on its various properties and the advertising dollars that flowed to the company as a result. We believed its competitive advantage was that the platform was, more or less, a monopoly on people’s time and attention. The rise of TikTok and other emerging platforms has given us pause on the company’s ability to maximize that advantage. From our perspective, the idea of “one platform to rule them all” may now be a thing of the past as social offerings have become more fragmented.

In addition, though our research has indicated that much of the initial damage done from Apple’s iOS 14.5 privacy changes has been repaired, we remain concerned with Apple’s influence over the digital advertising ecosystem. Apple is one of the largest gatekeepers to Meta’s mobile services, and it has become more difficult for us to gauge the pace of change emerging from Apple relating to privacy, as well as evaluating Apple’s ambitions in advertising…” (Click here to read the full text)

3. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 156

Baupost Group’s Stake Value: $354,412,000

3-year Revenue Growth: 59.1%

Securities filings for the fourth quarter of 2022 indicate that Seth Klarman’s Baupost Group owns nearly 4 million shares of Alphabet Inc. (NASDAQ:GOOG), worth $354.4 million and representing 5.78% of the total portfolio. Klarman increased his position in Alphabet Inc. (NASDAQ:GOOG) by 191% in Q4. With average 3-year revenue growth of 59%, Alphabet is one of the top high growth stocks owned by Klarman. 

Morgan Stanley analyst Brian Nowak said on February 9 that recent presentations from Alphabet Inc. (NASDAQ:GOOG) and Microsoft on artificial intelligence indicate significant changes in the search user experience, overall utility, and higher incremental search compute costs. While Nowak believes that Alphabet Inc. (NASDAQ:GOOG) has the technology and scale to sustain and expand its “leading user base,” the deeper integration of AI may result in greater incremental cost risks. The firm estimates that every 10% of Google Search queries moving to language models could add about $1.2 billion in operating expenses. Despite this concern, Morgan Stanley maintained an Overweight rating and $135 price target on Alphabet Inc. (NASDAQ:GOOG) shares.

According to Insider Monkey’s third quarter database, 156 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG), compared to 153 funds in the preceding quarter. 

Diamond Hill Large Cap Strategy made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its Q4 2022 investor letter:

“Other bottom contributors included media and technology giant Alphabet Inc. (NASDAQ:GOOG), apparel and footwear company V.F. Corporation and utility operator Dominion Energy. We believe Alphabet’s shares underperformed on concerns of a weakening macroeconomic environment. The company also reported weaker-than-expected earnings and revenue for Q3 2022. Longer-term, we expect Alphabet’s search engine advertising, YouTube advertising and other initiatives to continue driving revenue growth. As such, we used the share price weakness this quarter to add to our position.”

2. Qorvo, Inc. (NASDAQ:QRVO)

Number of Hedge Fund Holders: 35

Baupost Group’s Stake Value: $519,517,000

3-year Revenue Growth: 29.9%

Qorvo, Inc. (NASDAQ:QRVO) is a North Carolina-based company that develops and commercializes technologies and products for wireless, wired, and power markets worldwide. The company operates through two segments, Mobile Products, and Infrastructure and Defense Products. In Q4 2022, Seth Klarman held 5.7 million shares of Qorvo, Inc. (NASDAQ:QRVO) worth $519.5 million, representing 8.47% of the total 13F securities. 

On February 3, Mizuho analyst Vijay Rakesh raised the firm’s price target on Qorvo, Inc. (NASDAQ:QRVO) to $100 from $93 and reiterated a Neutral rating on the shares following the “good” Q4 results.

According to Insider Monkey’s Q3 data, Qorvo, Inc. (NASDAQ:QRVO) was part of 35 hedge fund portfolios, compared to 30 in the prior quarter. Jim Simons’ Renaissance Technologies is a significant position holder in the company, with 993,706 shares worth $79 million. 

Here is what Vulcan Value Partners has to say about Qorvo, Inc. (NASDAQ:QRVO) in its Q1 2022 investor letter:

“Qorvo Inc. is one of the two major providers of radio frequency RF systems which are critical components of mobile devices including smartphones and the Internet of Things (IoT). Two transitory concerns have recently affected the company’s stock price. First, supply chain issues continue to be a constraint. Second, Apple recently announced its decision to decrease production of its iPhone SE model. Neither of these issues threatens their long-term competitive position. Qorvo’s value is stable and despite the recent pressure on the stock price, we feel its long-term prospects are promising.”

1. The Liberty SiriusXM Group (NASDAQ:LSXMA)

Number of Hedge Fund Holders: 43

Baupost Group’s Stake Value: $534,166,000

3-year Revenue Growth: 11.5% 

The Liberty SiriusXM Group (NASDAQ:LSXMA) is a Colorado-based company engaged in the entertainment business in the United States and Canada. In the fourth quarter of 2022, Seth Klarman’s Baupost Group owned 13.65 million shares of The Liberty SiriusXM Group (NASDAQ:LSXMA), worth $534 million and representing 8.71% of the total 13F securities. 

Citi analyst Jason Bazinet increased the firm’s price target for The Liberty SiriusXM Group (NASDAQ:LSXMA) from $60 to $62 and maintained a Buy rating on the shares. He also stated that Liberty SiriusXM is still his preferred stock among the companies he covers.

According to Insider Monkey’s data, 43 hedge funds were bullish on The Liberty SiriusXM Group (NASDAQ:LSXMA) at the end of Q3 2022, compared to 44 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with 43.20 million shares worth $1.6 billion. 

Here is what Weitz Investment Management, Inc. has to say about The Liberty SiriusXM Group (NASDAQ:LSXMA) in its Q4 2021 investor letter:

“Another Liberty company, Liberty SiriusXM, owns over 80% of SiriusXM Satellite Radio. We believe that SiriusXM is undervalued and that the Liberty SiriusXM structure allows us to own the company at a discount. Both Charter Communications and SiriusXM are growing nicely, generating prodigious amounts of free cash flow and buying back lots of their own stock. John Malone controls both of these Liberty securities, and we believe he will find ways to close the discounts and extract maximum value for shareholders. Both Liberty securities were stock market duds in 2021, but we expect them to be contributors in 2022 regardless of what the general market does.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out 15 Best Safe Dividend Stocks for 2023 and 10 Best Performing Warren Buffett Stocks in 2023. 

Suggested articles:

• 12 Stocks to Sell According to Motley Fool
• 10 Best Annuity Companies in the US
• 15 Biggest Advertising Companies in the World

Disclosure: None. 12 High Growth Value Stocks to Buy According to Seth Klarman is originally published on Insider Monkey.