Top 5 Stock Picks of Legendary Value Investor Seth Klarman

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In this article, we discuss the top 5 stock picks of legendary value investor Seth Klarman. If you wish to read our comprehensive analysis of Klarman’s history and hedge fund performance, go directly to Top 10 Stock Picks of Legendary Value Investor Seth Klarman.

5. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 158

Percentage of Baupost Group’s 13F Portfolio: 6.52%

Baupost Group’s Stake Value: $660.4 million

Alphabet Inc. (NASDAQ:GOOG) is up next on Seth Klarman’s list of top 10 stocks to buy. The technology giant featured in the portfolios of 158 hedge funds out of the 924 hedge funds tracked by Insider Monkey during the fourth quarter, with overall holdings worth $36.6 billion. This shows a positive trend from the previous quarter where 156 hedge funds owned stakes worth almost $35 billion in Alphabet Inc. (NASDAQ:GOOG).

Baupost Global owned 228,000 shares of Alphabet Inc. (NASDAQ:GOOG) in Q4 2021 at a value of $660.4 million. This amounts to a 6.52% slice of the fund’s overall portfolio, and signals a decrease of 22% in holding over the preceding quarter. In Q4 2021, TCI Fund Management was the largest shareholder of Alphabet Inc. (NASDAQ:GOOG) owning 2.95 million shares worth $8.54 billion.

On April 19, Rosenblatt analyst Barton Crockett initiated coverage of Alphabet Inc. (NASDAQ:GOOG) with a ‘Buy’ rating and $4,183 price target. The analyst notes that no firm is better positioned than Alphabet to take advantage of the online sphere, given its advantaged positioning for new ad privacy restrictions, dominance in viral video and emerging success in cloud services.

For the fourth quarter, Alphabet Inc. (NASDAQ:GOOG) posted an EPS of $30.69, beating estimates by $3.41. $75.33 billion in quarterly revenue was also above consensus estimates by $3.5 billion and showed an increase of 32.29% as compared to the year-ago quarter.
ClearBridge Investments, an investment firm, talked about Alphabet Inc. (NASDAQ:GOOG) in its Q1 2022 investor letter, stating:

“Additionally, we added to our position in Alphabet (NASDAQ:GOOG), whose valuation we found attractive amid the market selloff early in the quarter, particularly given its dominant position in search, its scaling opportunities in cloud services, and its relative insulation from Apple (NASDAQ:AAPL)’s privacy initiatives, which do not affect Alphabet’s core search business the way they do other large tech platforms.”

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