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Klarman Adds to American International Group Inc (AIG), Drops Allied Nevada Gold Corp. (ANV) and Genworth Financial Inc (GNW)

Over the last year, Genworth Financial Inc (NYSE:GNW) has been a tremendous performer, rallying over 120%. As a value investor, Klarman might have worried that the stock was becoming a bit overvalued. Of course, that rally has continued since the end of March, with shares adding another 7.8% — perhaps Klarman sold out too soon.

Genworth Financial Inc (NYSE:GNW) is to some extent a play on the US housing market — the company has a substantial US mortgage insurance business. But it’s also globally diversified, with an Australian mortgage insurance business that could be IPOed.

Analysts at BTIG downgraded Genworth earlier in the month, lowering their rating to Neutral. Although they continue to believe that the stock is undervalued on a sum-of-the-parts basis, they believe there are few near-term catalysts to push shares higher.

Following The Baupost Group

Investors should never blindly follow the 13Fs of any fund manager — by the time they’re released, they are several weeks out of date. Further, as fund managers don’t have to disclose their short positions, they fail to tell the whole story.

But that said, it’s worth paying attention to the filings from some of the largest funds, if for nothing else than to look for investment trends and generate potential trading ideas.

The article Klarman Adds to AIG, Drops Allied Nevada and Genworth originally appeared on and is written by Salvatore “Sam” Mattera.

Joe Kurtz has a long position in Genworth Financial. The Motley Fool recommends American International Group. The Motley Fool owns shares of American International Group and has the following options: Long Jan 2014 $25 Calls on American International Group. Salvatore “Sam” is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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