Seth Klarman (Trades, Portfolio), manager of the Baupost Group, disclosed this week that his top five buys for the first quarter were Alphabet Inc. (NASDAQ:GOOG)(NASDAQ:GOOGL), Facebook Inc. (NASDAQ:FB), HD Supply Holdings Inc. (NASDAQ:HDS), Energy Transfer LP (NYSE:ET) and XPO Logistics Inc. (NYSE:XPO).
Klarman received an economics degree at Cornell University and an MBA at Harvard University. The author of “Margin of Safety” invests in a wide range of securities, ranging from fairly traditional value stocks to more esoteric investments like distressed debt, liquidations, foreign equities and bonds.
According to an August 2017 CNBC article, Klarman has three underlying pillars of his investing approach: “analyze the potential for loss before gain, absolute over relative returns, and forget macro investing, instead focus on individual investment ideas.” Klarman also warned that investing is not just about producing absolute returns, but also about paying attention to the risks incurred to generate return.
According to the latest ADV form, Baupost manages approximately $30.2 billion in assets, with an equity portfolio value of approximately $6.75 billion. The equity portfolio contains 32 stocks, with a turnover ratio of 25% and eight new positions. The top three sectors in terms of weight are