In the most recent 13F, Seth Klarman’s Baupost Group LLC/MA reported a portfolio valued at $4.13 billion, with the top five holdings making up a concentrated 46.93% of total assets. Klarman, known for his deep value approach and patient capital allocation, continues to favor companies trading below intrinsic value while maintaining a strong margin of safety. Below is a detailed look at each of the top five positions.
Alphabet Inc. (GOOG) – 11.31%
Baupost’s largest position is Alphabet, with 2.63M shares worth $467.24M, accounting for 11.31% of the portfolio. The fund added 556,000 shares (+26.76%) during the quarter, signaling Klarman’s growing conviction in the tech giant’s dominant search franchise, robust balance sheet, and long-term AI monetization opportunities.
Wesco International Inc. (WCC) – 9.90%
The second-largest position is Wesco International, with 2.21M shares valued at $408.85M (9.90% of assets). Baupost increased its stake by 202,000 shares (+10.07%), reaffirming confidence in Wesco’s leadership in industrial distribution and electrical solutions—a steady cash-flow generator in an otherwise cyclical sector.
Willis Towers Watson PLC (WTW) – 9.75%
Baupost owns 1.31M shares of Willis Towers Watson worth $402.79M, representing 9.75% of the portfolio. The fund trimmed 211,000 shares (-13.86%) this quarter, likely reflecting disciplined profit-taking after strong performance. Klarman has long favored insurance and risk management firms for their recurring revenue and defensible market positions.
CRH PLC (CRH) – 8.50%
The fourth-largest holding is CRH PLC, with 3.83M shares valued at $351.17M (8.50% of assets). Baupost added 1.13M shares (+41.98%), showing increased conviction in the global building materials leader. The move underscores Klarman’s interest in companies with tangible assets and pricing power amid ongoing infrastructure demand.
Fidelity National Information Services (FIS) – 7.47%
Rounding out the top five is FIS, with 3.78M shares worth $308.52M (7.47% portfolio weight). The fund boosted its holdings by 296,764 shares (+8.50%), indicating confidence in the company’s restructuring efforts, cost controls, and potential to unlock value following recent strategic divestitures.
Conclusion
Baupost’s portfolio this quarter reflects Seth Klarman’s disciplined value philosophy—selectively adding to undervalued positions while trimming gains in outperformers. The concentration across technology, industrials, and financials highlights his willingness to take sizable stakes in mispriced, high-quality businesses with strong underlying assets. Despite broader market volatility, Klarman’s positioning remains a testament to patient, fundamentals-driven investing aimed at long-term capital preservation and growth.
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