In this article we discuss the 5 best stocks to invest in right now according to Seth Klarman. If you want to read our detailed analysis of Seth Klarman‘s history, and hedge fund performance, go directly to the 10 Best Stocks to Invest In Right Now According to Seth Klarman.
5. Viasat, Inc. (NASDAQ: VSAT)
Klarman’s Stake Value: $783,010,000
Percentage of Seth Klarman’s 13F Portfolio: 6.23%
Number of Hedge Fund Holders: 26
Viasat, Inc. (NASDAQ: VSAT) is a broadband and communications products and services supplier worldwide. The company ranks 4th in 10 best stocks to invest in right now according to Seth Klarman.
“ViaSat (-50%, -2.29%; –, –), the satellite communications company, was also a top detractor this year. We exited our position in September at a moderate loss, but a longer-term opportunity cost after six years of ownership. Over the course of our holding, ViaSat shrunk its residential subscriber churn and raised prices, as we had originally believed they would. Its government business grew revenues and profits strongly, and ViaSat Inflight signed up over 2000 airplanes. But the company will not produce positive FCF for several more years due to the ongoing investment demands of its next-gen satellites and other capital allocation decisions. Hard to quantify threats from new entrants have emerged from the likes of a still questionable but now well-funded SpaceX and a farther-off Amazon constellation. We have also disagreed with management on certain items over our holding period. There is a wide range of outcomes from here for the business, but we felt we could deploy the capital elsewhere with less risk.”