Seth Klarman's Baupost Group Dumps Avantair (AAIR) ~ market folly

Thursday, June 10, 2010

Seth Klarman's Baupost Group Dumps Avantair (AAIR)

Seth Klarman's investment firm Baupost Group just filed an amended 13G with the SEC regarding shares of Avantair (AAIR) due to activity on April 30th, 2010. Per the filing, Baupost Group has disclosed a 0% ownership stake in Avantair with 0 shares. Obviously, this means they no longer own a position. What's curious is that their most recent 13F filing which disclosed Baupost's portfolio as of March 31st, 2010 did not list AAIR as a position either. We would fathom that since AAIR is traded over the counter (OTC), that maybe it is not a security deemed reportable by the SEC for 13F purposes. Regardless, the thing to take away here is that Baupost no longer owns shares.

We track Baupost Group because its manager is one of the most successful of our generation. To learn to invest like this guru we'd of course defer to the man himself via Seth Klarman's recommended reading list. A normally somewhat recluse Klarman has been actively in the spotlight as of late, giving speeches at numerous events. We summarized Klarman's talk at the CFA Conference and also detailed his thoughts from the Ira Sohn Conference. Maybe his sudden public appearance blitzkrieg coincides with the fact that he is more worried about the markets than he ever has been. (Or maybe it was just how his schedule played out). Either way, it's always great to hear his perspective.

Taken from Google Finance, Avantair is "engaged in the sale of fractional ownership interests and charter card usage of professionally piloted aircraft for personal and business use and the management of its aircraft fleet. As of June 30, 2009, the Company operated 52 aircraft within its fleet, which is comprised of 46 aircraft for fractional ownership, five company- owned core aircraft and one leased and company- managed aircraft."

You can view the rest of Baupost Group's portfolio here.

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