Baupost Group, the hedge fund established and managed by Seth Klarman, recently submitted its 13F filing with the Securities and Exchange Commission SEC for the third quarter that ended September 30, 2013. Its portfolio showed that the amount of its equity investment for the quarter was $3,498,866,000, while total AUM is about $28 billion.
Seth Klarman’s largest position
The largest stockholdings of Baupost Group for the third quarter include Micron Technology, Inc. (MU) and Theravance Inc (THRX), representing 31.91% and 21.62% of its portfolio respectively. ViaSat, Inc. (VSAT) accounts for 20.01%, BP plc (BP) (BP) 6.72% and Idenix Pharmaceuticals Inc (IDIX) 4.4%.
Seth Klarman’s new acquisition
During the quarter, the only stock acquired by the hedge fund was PBF Energy Inc (PBF). Baupost purchased 955,140 shares of the company worth $21,443,000, which accounts for 0.61% of its portfolio.
PBF Energy Inc (PBF) energy delivered poor financial results during the third quarter. The company incurred net losses of $46.9 million or $0.48 losses per share and $4.85 billion revenue compared with its $71.5 million net income or $0.73 earnings per share during the previous quarter. The stock price of the company declined from its highest level at $42.50 over the past 52 weeks to its current trading price of $28 per share.
Seth Klarman’s increased positions
Baupost Group significantly increased its position in Micron Technology, Inc. (MU) by 22,500,000 bringing its total stake in the company to 64,000,000. The market value of its stake in the company is approximately $1.118 billion.
The hedge fund also bought an additional 2,898,693 shares of Idenix Pharmaceuticals Inc (IDIX) making its stake in the company 29,665,693. Earlier this month, Baupost Group increased its stake in the company to 36,910,868 or 27.55% stake, making it the largest shareholder of Idenix.
Baupost Group also added to its position in ChipMOS Technologies Bermuda Ltd (IMOS) by 519,705 shares and Theravance Inc (THRX) by 1,971,394 shares. Its total stakes in both companies were 3,283,235 shares worth $59,033,000 and 18,510,371 shares worth $756,519,000, respectively.
Seth Klarman’s reduced positions
Baupost Group reduced its stake in Alliance One International, Inc. (AOI) by 1,286,328 shares, BP plc (BP) (BP) by 13,000,000 shares, Central Pacific Financial Corp. (CPF) by 712,016 shares, and Ituran Location and Control Ltd (ITRN) TLV:ITRN by 562,001 shares.
The hedge fund protected its portfolio from interest rate volatility by investing in several opportunities in the credit sector in Europe. Baupost Group also invested in some several European equities and real estate.