In this article, we present the list of the top 5 stocks billionaire Seth Klarman is selling off. For our methodology and a more comprehensive list, go directly to Top 10 Stocks Billionaire Seth Klarman is Selling Off.
5. Micron Technology, Inc. (NASDAQ:MU)
Net Amount of Shares Baupost Group Sold in Q4: 3.91 million
Number of Hedge Fund Holders: 83
Seth Klarman’s Baupost Group sold off 55% of its stake in Micron Technology, Inc. (NASDAQ:MU) during Q4, leaving it with 3.25 million shares valued at $303 million. Micron still ranks as Klarman’s 11th largest holding and the stock was extremely popular with hedge funds during Q4, as ownership of it surged by 28%.
In its first quarter of fiscal 2022 ended December 2, Micron Technology, Inc. (NASDAQ:MU) grew revenue by 33% year-over-year, including by 38% in its DRAM segment, which accounts for over 70% of the company’s sales. Micron also grew its adjusted earnings per share by over 150% year-over-year to $2.16.
Micron Technology, Inc. (NASDAQ:MU) is confident that it can continue to attain a greater market share in the DRAM space, having raised that figure by four percentage points to 25% during the third quarter of the calendar year 2021. Micron is pointing to 2024 as the year it will begin volume production of its extreme ultraviolet (EUV)-based chips, which the company believes will allow it to sustain a competitive edge over its rivals in the space for years to come.
4. ironSource Ltd. (NYSE:IS)
Net Amount of Shares Baupost Group Sold in Q4: 4.00 million
Number of Hedge Fund Holders: 24
Klarman unloaded 50% of his stake in ironSource Ltd. (NYSE:IS) during the fourth quarter, leaving his fund with even 4 million shares valued at $30.96 million on December 31. Hedge fund ownership of ironsource has fallen by 29% over the past two quarters following the company’s IPO in late Q2.
The Israel-based mobile monetization firm went public after merging with SPAC Thoma Bravo Advantage in a deal that Baupost Group took part in as private investment in public equity (PIPE). Shares of ironSource Ltd. (NYSE:IS) have tumbled by 45% since the company went public.
ironSource Ltd. (NYSE:IS) is a major player in the mobile gaming world, with the company claiming that its platform powers 86% of the top 100 most downloaded mobile games as of Q3 2021. Despite its dominant position in the space, ironsource earned just $0.02 per share in Q4 on $158.3 million in revenue. There is also some investor concern over the possibility that Google will implement iOS-style privacy changes that could impact advertisers like ironsource.
3. eBay Inc (NASDAQ:EBAY)
Net Amount of Shares Baupost Group Sold in Q4: 5.98 million
Number of Hedge Fund Holders: 53
Seth Klarman unloaded his entire position in eBay Inc (NASDAQ:EBAY) during Q4, cutting ties with the company he had been a shareholder of since Q4 2018. eBay shares gained over 150% between the middle of that quarter and the middle of Q4 2021. They’ve slumped by 32% since October 21 however due to the investor flight from tech stocks.
eBay Inc (NASDAQ:EBAY) was a big winner during the first year-plus of the pandemic, as house-bound consumers increasingly turned to online channels to satisfy their shopping fix. With the effects of the pandemic beginning to wane, eBay has begun losing active buyers again, 5 million in total during Q4. On a trailing 12-month basis, eBay’s 147 million active buyers were down by 9% year-over-year.
eBay Inc (NASDAQ:EBAY) has instead focused on high-value buyers, which it says grew by 3% last year. That shift appears to be helping the company’s bottom line (though not its top line), as its marketing efforts have become more directed and effective, reducing spending. eBay grew adjusted earnings per share by 24% year-over-year in Q4.
2. PG&E Corporation (NYSE:PCG)
Net Amount of Shares Baupost Group Sold in Q4: 7.22 million
Number of Hedge Fund Holders: 59
Klarman also dumped his entire stake in PG&E Corporation (NYSE:PCG) during Q4, closing the position he opened in the first quarter of 2018. Hedge fund ownership of PCG has fallen by 31% since mid-2020. The holding didn’t work out for Klarman, to say the least, as PG&E shares are down by 74% since the end of Q1 2018.
PG&E Corporation (NYSE:PCG), which has been caught up in various scandals over the years related to wildfires and water contamination, has taken major steps to improve its safety record through improvements to its PSPS algorithm, the current iteration of which the company claims would have prevented 96% of the structural damage caused by fires that started from coming into contact with its electrical wires between 2012 and 2020.
PG&E Corporation (NYSE:PCG) delivered $0.28 in EPS during Q4, in line with estimates, and has guided for between $1.07 and $1.11 in EPS for 2022. PG&E expects 10% EPS growth over the longer term, alongside 8.5% rate base growth.
1. Shaw Communications Inc. (NYSE:SJR)
Net Amount of Shares Baupost Group Sold in Q4: 7.53 million
Number of Hedge Fund Holders: 19
Closing out the list is Shaw Communications Inc (NYSE:SJR), which is another of Seth Klarman’s holdings that he sold off during Q4, in this case just two quarters after initiating the position, which ranked as the largest in the stock among the hedge funds tracked by Insider Monkey as of September 30. Crispin Odey’s Odey Asset Management also dumped a position of more than a million shares of SJR during Q4.
Shaw Communications Inc (NYSE:SJR), a Canadian telecommunications provider, grew revenue to $1.38 billion in Q4 from $1.35 billion a year earlier, while EPS jumped nearly 50% to $0.50. The company added 60,500 new wireless customers during the quarter, which was offset slightly by a 5.7% decline in average revenue per unit.
Shaw Communications Inc (NYSE:SJR) is set to be acquired by Canadian telecom and media giant Rogers Communications Inc. (NYSE:RCI) in a deal worth $26 billion. The deal is expected to close in the second quarter of this year if approved, though hurdles remain on that front, as a House of Commons committee report tabled last week urges the federal government to reject the deal unless Rogers agrees to divest Shaw’s wireless business.
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