Seth Klarman Stock Portfolio: Top 5 Stock Picks

3. The Liberty SiriusXM Group (NASDAQ:LSXMA)

Value of Baupost Group‘s 13F Position: $520 Million (LSXMK), $292 Million (LSXMA)

Number of Hedge Fund Shareholders: 52 (LSXMK), 43 (LSXMA)

Seth Klarman raised his stake in both classes of The Liberty SiriusXM Group (NASDAQ:LSXMA)’s shares by 4% during Q3, ending the quarter with a combined 21.4 million shares. Warren Buffett’s Berkshire Hathaway also owns large stakes in both LSXMK and LSXMA, with a combined 63.4 million shares. Both classes of shares have lost 17% in 2022.

The Liberty SiriusXM Group (NASDAQ:LSXMA) announced in November that will attempt to split off Liberty Braves into a newly formed company called Atlanta Braves Holdings. The new company would include all of the assets and liabilities of Braves Holdings LLC, which includes the Atlanta Braves MLB team, certain assets and liabilities related to its home stadium Truist Park, as well as a mixued-use development project called The Battery Atlanta.

The move is an attempt to improve Liberty Media’s steep net asset value (NAV) discount by improving the visibility of some of its assets. Deutsche Bank analyst Brian Kraft estimated back in August that The Liberty SiriusXM Group (NASDAQ:LSXMA) was trading at a 36% NAV discount and was bullish on management’s plans to take action to improve that, which eventually culminated in the above plans. Kraft had a ‘Buy’ rating and $74 price target on LSXMA shares at that time, suggesting the stock has 76% upside.