In this article, we will list the Seth Klarman Stock Portfolio: 5 Best Stocks to Buy. Please visit Seth Klarman Stock Portfolio: 10 Best Stocks to Buy if you would like to see the extended list and the methodology behind it.
5. Ferguson Enterprises Inc. (NYSE:FERG)
Baupost Group’s Stake Value: $336,457,000
Stock Upside: 25.37%
Number of Hedge Fund Holders: 85
Ferguson Enterprises Inc. (NYSE:FERG) is one of the best Seth Klarman portfolio stocks to buy. On June 16, Ferguson Enterprises Inc. (NYSE:FERG) announced its intention to cancel its secondary listing on the London Stock Exchange (LSE). The delisting will take effect later this month, on July 20, at 8:00 a.m. UK time.
The company will remove its common stock from the Equity Shares category of the UK Financial Conduct Authority’s Official List. It will also end trading on the LSE’s main market on July 17.
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Ferguson said that because it is classified under the international commercial companies secondary listing category, no shareholder vote is required to approve the move. Although the company still had to give the required 20 business days’ notice under UK Listing Rules before proceeding. Following the delisting, Ferguson will keep its primary listing on the New York Stock Exchange (NYSE), where the stock will continue trading uninterrupted under the same FERG ticker.
The company said it arrived at the decision due to greater liquidity on the NYSE. Other factors include a shareholder base that is now predominantly North American, a desire to cut costs and operational complexity, and a wish to align its listing structure with its business profile, which is now centered on North America.
For shareholders who hold their stock directly or through a DTC-linked broker or custodian, there will be no disruption at all. Holders of UK Depositary Interests, however, will need to take action, since DIs will no longer be tradeable on a recognized exchange once the London listing ends. They will have to convert their holdings into a DTC broker or custodian account through Computershare to keep trading on the NYSE.
Ferguson Enterprises Inc. (NYSE:FERG) is a value-added distributor. It provides plumbing, heating, ventilation, and air conditioning (HVAC), appliances, lighting, pipes, valves, and fittings (PVF), and water and wastewater solutions to specialized professionals in the residential and non-residential North American construction market.
4. Alphabet Inc. (NASDAQ:GOOGL)
Baupost Group’s Stake Value: $338,819,000
Stock Upside: 19.47%
Number of Hedge Fund Holders: 265
Alphabet Inc. (NASDAQ:GOOGL) is one of the best Seth Klarman portfolio stocks to buy. On July 2, Wells Fargo lowered its price target on Alphabet Inc. (NASDAQ:GOOGL) to $416 from $435, while maintaining its Overweight rating.
Analyst Ken Gawrelski made the revision and noted that even with the lower target, he remains upbeat about Alphabet’s near-term performance. Gawrelski projected Alphabet’s Q2 FY 2026 search revenue to grow by 17% year over year and total Google revenue to expand by 32%. Google is a component of Alphabet. The analyst also expects core Google revenue, which excludes the Gemini AI product line, to grow by 28%.
For the full FY2026, Wells Fargo expects search revenue to grow 16%, which, in the analysts’ view, reflects continued strength in Alphabet’s core advertising business despite competitive pressure from AI-driven search alternatives. On the cloud side, Wells Fargo actually raised its Q2 cloud revenue growth forecast to 72%, which is well above Wall Street’s estimate of 65%. The firm cited ongoing capacity-driven momentum and incremental profit margins holding steady around 50%.
Wells Fargo also expects Alphabet’s custom AI chips, known as tensor processing units, or TPUs, to become a meaningful external revenue source starting in the third quarter. TPU sales are likely to accelerate revenue growth to around 150% in the second half of the year, Gawrelski said. However, the analyst expects the profitability of those chip sales to be lower, and with incremental margins dropping into the low 30s.
Alphabet Inc. (NASDAQ:GOOGL) is a technology holding company, which operates through Google Services, Google Cloud, and Other Bets segments. It offers products and services including Search, ads, Android, Google Play, Chrome, Google Maps, devices, and YouTube.
3. WESCO International, Inc. (NYSE:WCC)
Baupost Group’s Stake Value: $393,159,000
Stock Upside: 29.10%
Number of Hedge Fund Holders: 42
WESCO International, Inc. (NYSE:WCC) is one of the best Seth Klarman portfolio stocks to buy. On July 1, WESCO International, Inc. (NYSE:WCC) announced it had completed the acquisition of Newark Engineering Group, a Singapore-based provider of engineered cooling solutions and lifecycle services for data centers.
On June 8, WESCO signed a definitive agreement to acquire 100% of Newark Engineering, where it would pay 175 million Singapore dollars, roughly $136 million, on a cash-free, debt-free basis. The transaction was expected to close in Q3 2026, which is around this time.
Newark specializes in design, supply, installation, commissioning, and maintenance of thermal management systems critical to data center performance. Its customer base spans Southeast Asia and includes global technology firms and Fortune 500 companies. The company generated approximately $60 million in revenue in 2025.
On why WESCO decided to snap the company up, it said, on June 8, that the acquisition expands its data center value chain participation, particularly in engineered cooling and lifecycle services. It also establishes a growth platform in the fast-growing Southeast Asia region. CEO John Engel expected the deal to enhance WESCO’s growth profile, support margin expansion, and generate attractive returns within the first year.
Engel reiterated the sentiments after announcing the acquisition’s completion on July 1. He said: “This acquisition expands WESCO’s participation in the data center value chain, while strengthening the company’s presence across Southeast Asia.”
WESCO International, Inc. (NYSE:WCC) is a business-to-business distribution and supply chain solutions company. It provides electrical equipment, automation and connected devices, security, lighting, wire and cable, data center infrastructure, network security solutions, and utility products to industrial, commercial, utility, and communications customers in the United States, Canada, and internationally.
2. Restaurant Brands International Inc. (NYSE:QSR)
Baupost Group’s Stake Value: $597,208,000
Stock Upside: 13.65%
Number of Hedge Fund Holders: 31
Restaurant Brands International Inc. (NYSE:QSR) is one of the best Seth Klarman portfolio stocks to buy. On June 9, Expansión, a Spanish economic newspaper, reported that Abu Dhabi sovereign investor Mubadala has hired advisers to prepare a potential bid for Restaurant Brands Europe (RBE), the company that operates Burger King, Popeyes, and Tim Hortons restaurants across Spain and Portugal, and which is a corporate affiliate of Restaurant Brands International Inc. (NYSE:QSR).
RBE is currently majority-owned by British private equity firm Cinven, which holds roughly 70% of the business, while Chairman Gregorio Jiménez owns about 20%. Restaurant Brands International holds the remaining 10% through its Burger King Europe unit.
According to Expansión, Cinven took control of RBE in 2021 when it valued the company at €1.2 billion, and after more than doubling the business’s size, it is now looking to cash in on its gains. The newspaper added that RBE’s current valuation, including debt, is estimated at €2-3 billion, and that Cinven initially considered a dual-track process (weighing both an IPO and a direct sale) before settling on a direct sale.
Mubadala joins a competitive field that already includes US firms Meritage Group and Apollo Global Management, said Expansión. It added that non-binding offers are expected in the coming weeks, and a sale possibly resolved before the August summer break.
Restaurant Brands International Inc. (NYSE:QSR) is a quick-service restaurant company. It owns and franchises four brands: Tim Hortons, a coffee and baked goods chain; Burger King, a hamburger restaurant chain; Popeyes Louisiana Kitchen, a chicken concept; and Firehouse Subs, a sandwich chain.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Baupost Group’s Stake Value: $649,543,000
Stock Upside: 31.87%
Number of Hedge Fund Holders: 353
Amazon.com, Inc. (NASDAQ:AMZN) is one of the best Seth Klarman portfolio stocks to buy. On July 2, Amazon.com, Inc. (NASDAQ:AMZN) confirmed it has now launched 396 satellites for Amazon Leo, its low Earth orbit broadband network formerly known as Project Kuiper. This milestone, the company said, is sufficient to begin an initial rollout of internet service later this year.
Amazon said that the latest batch of 29 satellites went up on United Launch Alliance’s (ULA’s) Atlas V rocket during the LA-08 mission. The rocket launched from Cape Canaveral Space Force Station on July 2 and marked Amazon Leo’s 14th mission overall. This mission also marked the end of Amazon’s use of the Atlas V rocket for Leo deployments. Melissa Wuerl, Amazon Leo’s Director of Launch Systems, noted that Atlas V had deployed 224 satellites across eight flights with a perfect success record, and that the company is now shifting to ULA’s newer, heavier-lift Vulcan rocket to carry larger satellite payloads and speed up deployment.
Amazon Leo now ranks as the third-largest satellite constellation currently in orbit, and the company has secured more than 100 total launches to gradually build out its planned network.
Amazon’s push toward internet service rollout comes after the US Federal Communications Commission granted the company a limited waiver last month on its original requirement to deploy half of its 3,232-satellite Gen1 constellation by July 30. The company acknowledged it could not meet that deadline.
Under that waiver, satellites launched after the original July 30 deadline will temporarily lose their earlier spectrum priority status, which Amazon can regain once it reaches 50 percent deployment, or automatically by March 2028 if that threshold isn’t met sooner. The company still faces a firm final deadline of July 30, 2029, to complete its full authorized constellation of 3,232 first-generation satellites.
Amazon.com, Inc. (NASDAQ:AMZN) is a retail and technology company. It engages in the retail sale of consumer products, advertising, and subscription services through online and physical stores. The company also operates Amazon Web Services, which provides compute, storage, artificial intelligence, database, analytics, and machine learning services.
While we acknowledge the potential of AMZN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMZN and that has 100x upside potential, check out our report about the cheapest AI stock.
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