Activist Seth Klarman buys BP, AIG, Elan

His hedge fund Baupost Group has meanwhile sold News Corp. and Oracle.

By GuruFocus.com May 15, 2013 2:09PM
Stock market report copyright CorbisRenowned value investor Seth Klarman just reported his first-quarter portfolio. 

According to the most recent filings of his investment company, the Baupost Group, Klarman bought BP (BP), American International Group Inc (AIG), Elan Corp (ELN), Rovi Corp (ROVI), Idenix Pharmaceuticals (IDIX), DirecTV (DTV), and sold News Corp (NWS), Oracle (ORCL), Genworth Financial (GNW), Allied Nevada Gold Corp (ANV), Ituran Location and Control (ITRN) during the three-month quarter ended March 31, 2013.


As of March 31, the Baupost Group owns 22 stocks with a total value of $3.1 billion. These are the details of the buys and sells.

  • New Purchases: ELN, DTV
  • Added Positions: BP, AIG, ROVI, IDIX 
  • Reduced Positions: NWS, ORCL, ITRN 
  • Sold Out: NWSA, GNW, ANV
This is the sector weighting of his portfolio: 
Technology 28.7% 
Energy 23.3% 
Healthcare 20.2%
Financial Services 15.7% 
Consumer Cyclical 4% 
Basic Materials 2.8% 
Consumer Defensive 1% 
Communication Services 0.4% 

These are the top five holdings of Seth Klarman
  1. BP PLC (BP) - 17,126,858 shares, 23.3% of the total portfolio. Shares added by 56.73%
  2. Viasat Inc (VSAT) - 11,000,000 shares, 17.1% of the total portfolio.
  3. American International Group Inc (AIG) - 11,850,200 shares, 14.8% of the total portfolio. Shares added by 69.29%
  4. Theravance, Inc. (THRX) - 13,553,800 shares, 10.3% of the total portfolio.
  5. Rovi Corp (ROVI) - 8,160,000 shares, 5.6% of the total portfolio. Shares added by 97.34%
New purchase: Elan Corp  
Klarman initiated holdings in Elan Corp. His purchase prices were between $9.4 and $12, with an estimated average price of $10.85. The impact to his portfolio due to this purchase was 3.5%. His holdings were 9,126,227 shares as ofMarch 31. Elan Corp., an Irish public limited company, is a neuroscience-based biotech. Elan Corp. has a market cap of $6.67 billion; its shares were traded at around $11.45 with a P/S ratio of 853.30.

New purchase: DirecTV
Klarman initiated holdings in DirecTV. His purchase prices were between $47.77 and $57.24, with an estimated average price of $51.9. The impact to his portfolio due to this purchase was 0.38%. His holdings were 207,300 shares as of 03/31/2013. DirecTV was incorporated in Delaware in 2009. The company is a provider of digital television entertainment in the U.S. and Latin America. DirecTV has a market cap of $35.51 billion; its shares were traded at around $64.41 with a P/E ratio of 13.80 and P/S ratio of 1.30. DirecTV had an annual average earnings growth of 28.5% over the past 5 years.

Sold out: News Corp.
Klarman sold out his holdings in News Corp. His sale prices were between $25.51 and $30.69, with an estimated average price of $28.45. News Corp. is a Delaware corporation. It's a global media company with operations in the following six industry segments: Cable Network Programming; Filmed Entertainment; Television; Direct Broadcast Satellite Television; Publishing; and Other. News Corp. has a market cap of $77.9 billion; its shares were traded at around $33.48 with a P/E ratio of 13.50 and P/S ratio of 2.20 and a dividend yield of 0.50%.

Sold out: Genworth Financial
Klarman sold out his holdings in Genworth Financial Inc. His sale prices were between $7.51 and $10.51, with an estimated average price of $9.16. Genworth Financial was incorporated in Delaware in 2003 in preparation for its corporate reorganization and an initial public offering of its common stock, which was completed on May 28, 2004. Genworth has a market cap of $5.43 billion; its shares were traded at around $11.00 with a P/E ratio of 14.30 and P/S ratio of 0.50. 

For Seth Klarman's complete portfolio, see GuruFocus.

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