Seth Klarman’s Value Stock Portfolio Performance in 2021: 5 Best Picks

3. Verint Systems Inc. (NASDAQ:VRNT)

Number of Hedge Fund Holders: 25

Gain in Share Price in 2021: 57%   

Verint Systems Inc. (NASDAQ:VRNT) provides customer engagement solutions. Klarman has been bullish on the company since 2020 when he bought over 1.2 million shares at an average price of $22.15 per share. He then nearly tripled this stake in the third quarter of 2020. At the end of September, Baupost Group owned more than 3.5 million shares of Verint Systems Inc. (NASDAQ:VRNT) worth $158 million. 

Verint Systems Inc. (NASDAQ:VRNT) has been attracting significant hedge fund interest in recent months. At the end of the third quarter of 2021, 25 hedge funds in the database of Insider Monkey held stakes worth $708 million in Verint Systems Inc. (NASDAQ:VRNT). 

In its Q2 2021 investor letter, Bernzott Capital Advisors, an asset management firm, highlighted a few stocks and Verint Systems Inc. (NASDAQ:VRNT) was one of them. Here is what the fund said:

“Verint Systems (VRNT): Initiated in January 2014, we exited with an absolute and relative gain. The company is progressing in its business model transition to subscription-based sales, and took a step toward shareholder value enhancement with its spin-off of Cognyte Software earlier this year. We sold those shares in 1Q. As the share price approached fair value, we sold VRNT which also reduced the portfolio’s exposure to the Software sector, where we remain overweight.”