Seth Klarman's Baupost Group: Portfolio Changes (13G Filings) ~ market folly

Wednesday, February 11, 2009

Seth Klarman's Baupost Group: Portfolio Changes (13G Filings)

Hedge fund Baupost Group ran by Seth Klarman has made a few more recent changes to their portfolio. In 2 amended 13G filings with the SEC due to activity on January 31st 2009, Baupost now shows:

  • A 16.68% ownership stake in Facet Biotech (FACT) with 3,985,567 shares.
  • A 0% ownership stake in Centerplate (CVP) with 0 shares. They previously held this company and have now completely sold out of their position.

These changes come after Baupost recently bought more RHIE. You can view additional portfolio updates here, as well as their portfolio in its entirety.

If you're unfamiliar with Baupost, then here's what you need to know: Over the past 25 years, Baupost has seen an annual compound return of 20% and is ranked 49th in Alpha's hedge fund rankings. Klarman has always considered himself a value investor and has been patient through the market turmoil. The past few years they have had nearly half their $14 billion in assets in cash. But, with turmoil comes opportunity. And, as such, Baupost's cash has been gradually deployed by Klarman and Baupost's 100 employees, leaving them with around a fourth of assets left in cash. Klarman's investment process is detailed in his book Margin of Safety. In it, he lays out a "how-to" on risk-averse value investing. The book is no longer actively printed and is very hard to find. His take on recent market action can be viewed in his recent interview with Harvard Business School. For more information about Klarman, check out our post on hedge fund manager interviews.

Company bios taken from Google Finance,

Facet Biotech Corporation "offers biotechnology research services for drug and pharmaceutical products development."

Centerplate, Inc. is "a provider of food and related services, including concessions, catering and merchandise services in sports facilities, convention centers and other entertainment facilities."

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