Earlier this week, money managers at top hedge funds around the country submitted 13F filings with the U.S. Securities and Exchange Commission (SEC). These filings detail many of those funds' investment actions from the second quarter of this year, and investors tend to pore over the reports, which are public, for ideas of how leading managers moved their assets around. Seth Klarman, the billionaire head of Baupost Group, is a favorite of those who closely follow the quarterly 13F releases, and for good reason: his firm's 13F filing for Q2 suggests that Baupost's 13F portfolio value climbed by more than $1 billion in that three-month period.
New Positions in AT&T, Tribune and More
Baupost started and ended the quarter with 31 13F securities, according to Seeking Alpha. Several of these represented new stakes for the firm, including a 2.66% stake in AT&T Inc. (T). Baupost had a significant merger-arbitrage stake in Time Warner over the past several quarters; the new T stake was the result of the acquisition of Time Warner by AT&T.
Exited PBF, ChipMOS and Others
In addition to taking on new stakes, Klarman sold out of several prior positions during the second quarter. The most significant of these was Baupost's stake in PBF Energy Inc. (PBF). This formerly occupied about 2.59% of the fund's 13F portfolio and was first purchased about five years ago at prices as high as $26 per share. This past quarter, when Baupost sold off its stake, shares sold for anywhere from $33.50 to $51 each.
Adjustments to 21st Century Fox, Cheniere
Baupost also tweaked many of its existing positions in Q2. Likely the most important of these is 21st Century Fox Inc. (FOX), the largest position in the 13F portfolio and accounting for about 23% of Klarman's relevant holdings. Klarman has increased his holdings by about 40% in each of the first two quarters of the year.
Viasat Inc. (VSAT) was another position that grew last quarter. It represents about 8% of Klarman's total portfolio, although he increased his stake by only about 4% during that period.
The most significant stake decrease last quarter was Cheniere Energy Inc. (LNG). This is Klarman's third-largest 13F stake, accounting for about 11% of the portfolio. Klarman sold off about a third of his holdings last quarter, although his fund still controls about 5.7% of the company.