Overview: Seth Klarman’s Baupost Group position trades in 3Q14

By

Updated

Baupost Group, LLC

Seth Klarman, of The Baupost Group, LLC, is one of the best-performing hedge fund managers of all time. The fund has generated $21.5 billion in returns over its history. In this series, we’ll discuss the notable positions that the $27 billion fund traded during the third quarter that ended in September.

Baupost top1

Article continues below advertisement

Baupost’s 3Q portfolio

The size of the fund’s US long portfolio fell to $5.74 billion in the third quarter from $6.14 billion in the second quarter. The fund’s top positions include Micron Technology, Cheniere Energy, Viasat, and eBay. The top three positions accounted for a majority of the US long portfolio. Overall, the fund comprised 26 stocks in the third quarter.

Baupost top10

Positions traded in 3Q14

The fund added new positions in Ocwen Financial Corp. (OCN), Antero Resources Corp. (AR), and Veritiv Corporation (VRTV). It raised its positions in Cheniere Energy, Inc. (LNG),  eBay Inc. (EBAY), Keryx Biopharmaceuticals, Inc. (KERX), and PBF Energy Inc. (PBF). The fund slightly lowered its position in Theravance Inc. (THRX). It didn’t sell any positions during 3Q14.

Baupost and Idenix position

Baupost benefited from its stake in Idenix Pharmaceuticals, which was acquired by drug giant Merck for $3.85 billion in June. Idenix is a biopharmaceutical company engaged in the discovery and development of drugs for the treatment of human viral diseases. Idenix’s current focus is the treatment of patients with hepatitis C infection. The fund held 53,331,109 shares in Idenix at the end of 2Q14.

The next part of this series will review Baupost’s new position in Ocwen Financial.

Advertisement

More From Market Realist