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Seth Klarman 2024 Portfolio: Top New Stock Picks

Value investing is back in the limelight as investors prepare for a higher-for-long interest rate environment. Legendary value investor Seth Klarman had said in his 2000 letter to investors that while value investing might underperform the broader market amid changing investment sentiment, value investing as a basic investment principle and strategy would never go out of style.

“We are not seeking to keep up with any particular market index or benchmark. Rather, we are attempting to achieve good risk-adjusted investment results over time through the successful implementation of our investment philosophy. We continue to believe strongly in a value investment approach, attempting to buy assets or businesses at a considerable discount to underlying value. Bargains exist because the financial markets are inefficient, yet many investors lack the requisite patience and discipline to take advantage of them. A value approach may outperform or underperform the overall market at various times because of changing investor sentiment, but we believe that a value philosophy never goes out of style. When sentiment towards undervalued sectors of the market is at its nadir, it is the best time to be buying value.”

Seth Klarman is Investing in AI, Growth Stocks in 2024

A cursory glance at Seth Klarman’s Q1’2024 portfolio shows that the value investor is no longer limiting himself to defensive stocks with attractive valuation metrics. He’s investing in some high-growth, loss-making companies as well which are expected to grow in the future. Klarman has time and again said that value investing does not mean adhering to a set pattern without any flexibility.

What Makes a Stock Undervalued According to Klarman?

In his 2000 letter he said that he’d consider a stock undervalued if its undervaluation is “substantial” and there are enough catalysts to help it reach its true value in the future. Klarman also said the underlying business of the company he’d like to investing should be “growing, not eroding.”

Seth Klarman wrote “Margin of Safety” back in 1991. The book, just like Klarman’s investments, aged well, and after years of gaining no attention from the Wall Street, became a value investing bible and cult classic in the investing landscape. Talking about his book and investing philosophy on Capital Allocators with Ted Seides last year, Klarman said any piece of financial writing or advice should stand the test of time. He gave the example of  Security Analysis written by Benjamin Graham and David Dodd,  saying the companies and case studies mentioned in the book are no more, but the principles and strategies continue to stay relevant. Klarman thinks even if humans are replaced by computers, these timeless investing principles will stay valid.

Klarman also said chances of making money by investing in “widely-followed” stocks are not that high.

“Looking at what everybody else is looking at is probably not that interesting. If you are doing to look at what everybody else looks at, look at it in a highly differentiated way. But you are not going to make money by outsmarting people on widely followed stocks with an undifferentiated opinion.”

Baupost Group Returns

 The media-shy billionaire, worth about $1.3 billion, founded Baupost Group in 1982. While the fund doesn’t publicly share its returns, a Wall Street Journal report last year disclosed that Baupost has returned on average about 20% annually since its inception.

For this article we scanned Klarman’s Q1’2024 portfolio and chose three exciting stocks he bought new stakes in during the first quarter. Unlike NVIDIA Corp (NASDAQ:NVDA), Amazon.com Inc (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG), which everyone is buying, you will see some new names in the portfolio.

To see more new stocks in Klarman’s portfolio, click Top 4 New Stock Picks of Seth Klarman in 2024.

SoundHound AI, Inc. (NASDAQ:SOUN)

Seth Klarman’s Stake Value: $5,554,000

Value investor Seth Klarman piling into a high-growth AI stock that has run more than 163% so far this year is news in its own. SoundHound AI, Inc. (NASDAQ:SOUN) is a California-based AI voice and speech recognition solutions company that came to the limelight following the AI revolution after the launch of ChatGPT. Seth Klarman’s Baupost reported owning a $5,554,000 stake in SoundHound AI, Inc. (NASDAQ:SOUN) during the first quarter of 2024. In addition to NVIDIA Corp (NASDAQ:NVDA), Amazon.com Inc (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG), AI-focused investors are also buying SOUN.

Fortrea Holdings Inc. (NASDAQ:FTRE)

Seth Klarman’s Stake Value: $12,194,000

Healthcare solutions company Fortrea Holdings Inc. (NASDAQ:FTRE) is one of the stocks Seth Klarman is buying in 2024. His hedge fund Baupost opened a $12,194,000 stake in Fortrea Holdings Inc. (NASDAQ:FTRE) during the March quarter this year.

Of the 933 hedge funds tracked by Insider Monkey as of the end of 2023, 31 hedge funds reported owning stakes in Fortrea Holdings Inc. (NASDAQ:FTRE).

In May Fortrea Holdings Inc. (NASDAQ:FTRE) posted Q1 results. Adjusted EPS in the period came in at -$0.04, missing estimates by $0.04. Revenue fell 4.6% year over year to $662.1 million, missing estimates by $92.48 million.

Unlike NVIDIA Corp (NASDAQ:NVDA), Amazon.com Inc (NASDAQ:AMZN) and  Alphabet (NASDAQ:GOOG), FTRE is a small company with low hedge fund sentiment.

Vltava Fund mentioned Fortrea Holdings Inc. (NASDAQ:FTRE) in its Q4 2023 investor letter. Here is what the firm has to say:

“Value can be created in various ways. Acquisition is one possibility. So-called spin-offs represent another. This involves hiving off a part of a company into a separate entity and taking it to market. One such spin-off occurred last summer with LabCorp. It spun off a smaller part of the company under the name Fortrea Holdings Inc. (NASDAQ:FTRE). For each of their shares, LabCorp shareholders received one share of the new Fortrea. It started trading at a fairly attractive price, so we sold immediately. Considering the price we got, we could say that this spin-off brought us some value, but it was only a one-off transaction and not a very large one at that.”

GDS Holdings Limited (NASDAQ:GDS)

Seth Klarman’s Stake Value: $17,290,000

China-based data center company GDS Holdings Limited (NASDAQ:GDS) is another growth stock Seth Klarman bought in the first three months of 2024. So far this year GDS Holdings Limited (NASDAQ:GDS) shares have gained about 8% in value.

These were just three new stock picks of Seth Klarman. But he’s buying many stocks this year.

Click to see 4 More Top New Stock Picks of Seth Klarman in 2024.

If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. Seth Klarman 2024 Portfolio: Top New Stock Picks was originally published on Insidermonkey.com

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.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

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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…