For everyday investors, 13F Forms are a valuable way of gaining insight into the strategies and stock interests of professionals. Once every quarter, hedge fund managers file their 13F Forms with the U.S. Securities and Exchange Commission (SEC), which disclose many of the buys and sells that took place in the previous quarter for firms managing at least $100 million in assets. The list of firms filing 13Fs includes many of the biggest names in the investment world, so it's no surprise that analysts would look to these forms for an idea of what's what in the investing world. Below, we'll explore the most recent 13F from one hedge fund in particular: Seth Klarman's Baupost Group.
Consolidated Top Positions
Seth Klarman, the billionaire head of Baupost Group, strengthened what was already a fairly heavily concentrated 13F portfolio in the third quarter. According to a report from research firm Seeking Alpha, the top five securities among Klarman's 35 holdings occupy more than 50% of the assets invested in his portfolio. Among these, Klarman added significantly to two of these top holdings. Twenty-First Century Fox (FOXA) has been a major position since Klarman first purchased it three years ago. After doubling his position in FOXA earlier this year, Klarman ended Q3 with about a quarter of his portfolio invested in Twenty-First Century Fox.
PG&E Corporation (PCG) is a more recent addition to Baupost's lineup. The firm established its stake in PCG in the first quarter of 2018 and has since increased its holdings. As of the end of September, PCG represented just under 7% of Baupost's portfolio.
New Positions in Liberty Global, Altaba and More
According to the Baupost Group 13F filing, the company took on several new positions last quarter. The company's new stakes include Liberty Global (LBTYK), Altaba Inc. (AABA), Univar Inc. (UNVR) and others. At the end of the third quarter, LBTYK occupied just under 3.5% of Baupost's portfolio, although the price of the stock has dropped slightly since the period in which Klarman initiated his stake. AABA is a smaller position, representing about 1.5% of the Baupost holdings as indicated by the 13F. UNVR is a smaller position still, representing just 0.42% of Klarman's holdings as of the end of September.
Among Klarman's sells last quarter, the most significant was AT&T Inc. (T). The telecommunications company previously represented about 2.66% of Klarman's 13F portfolio, an investment that resulted from AT&T's acquisition of Time Warner in late 2016. After that transaction was closed over the summer, Klarman disposed of the AT&T shares in the third quarter.