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BP plc (ADR) (BP), ViaSat, Inc. (VSAT), American International Group Inc (AIG): Seth Klarman Is Betting on These Stocks

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According to Bloomberg, the Baupost Group is ranked fourth in terms of net gains since inception. It’s run by Seth Klarman, a famed value investor, who uses risk-averse value investing strategies to stomp the market.  His fund has generated an average return of 20% per year over the last 31 year’s. Baupost has nearly $28.1 billion in assets under management as of March 31.  Now that it has filed its 13F with the SEC, we can see its top holdings.

Company Percentage Holding
BP plc (ADR) (NYSE:BP) 23.33%
ViaSat, Inc. (NASDAQ:VSAT) 17.14%
American International Group Inc (NYSE:AIG) 14.8%

Increasing stake in Russian Oil

BP plc (ADR) (NYSE:BP)

In March, BP plc (ADR) (NYSE:BP) had divested its 50% stake in TNK-BP to Rosneft, the largest Russian oil company, for $16.65 billion in cash and an additional 12.84% stake in Rosneft. BP plc (ADR) (NYSE:BP) was previously holding a 6.91% stake, and now, it holds almost 20% of the company. BP is now the second largest stakeholder after the Russian government.

In the first quarter, Rosneft produced 4.8 million barrels of oil per day, or MMbpd, and BP plc (ADR) (NYSE:BP) expects Rosneft, with its advanced technology, to further increase production. It has also planned to explore the Russian shale oil reserve, which will enhance its net earnings by around 145% to $29.44 billion this year.

BP has planned for capital expenditures of $2.85 billion in one of the largest oil fields in the world, Rumaila, Iraq. It’s planning to upgrade and expand its equipment and facilities to increase its oil production in this region. Over the next 5 years, BP plc (ADR) (NYSE:BP) will drill 300 new oil wells in this region, and out of this, approximately 150 new oil wells will be drilled in the second half of this year.  By developing the Rumaila oilfield, BP plc (ADR) (NYSE:BP) expects an output of around 1.35 MMbpd over the next 3 years.

Exede leading from front

With the growing demand for high speed internet services, ViaSat, Inc. (NASDAQ:VSAT) has increased the speed and capacity of its satellite internet service “Exede” by 10 times. The service reported 22% sequential growth in its net subscriber base, adding around 46,000 subscribers. This growth was mainly driven by its retail channel segment.

The company is also looking to capture growth opportunities by providing services based on its proprietary intellectual property. Exede is expected to increase its net subscriber base to 205,000 in 2014 compared to 127,100 this year. The company also expects its revenue to grow by 46% to $403.1 million by 2014.

ViaSat, Inc. (NASDAQ:VSAT) has signed a $20 million deal with JetBlue Airways Corporation (NASDAQ:JBLU). The company will offer its Exede in-flight satellite terminal services on JetBlue Airways Corporation (NASDAQ:JBLU) commercial planes. This in-flight service is designed to provide improved internet access to airline passengers, equivalent to the quality of broadband. This service will be added to more than 160 JetBlue Airways Corporation (NASDAQ:JBLU) at a speed of 12 Mbps. ViaSat, Inc. (NASDAQ:VSAT) anticipates a 20% revenue gain, to exceed $1.33 billion, in 2014.

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