Baupost Group, the hedge fund firm led by value investing expert Seth Klarman, has significantly reduced its stake in Alphabet, the parent company of Google, while expanding its holdings in the health insurance sector with a new investment in Humana, according to a report by Morningstar.
The report cites the firm’s latest 13-F filings as showing that in Q2 2024, the Boston-based hedge fund, which manages $4bn in assets, slashed its Alphabet position by nearly 64%, following a notable decline in the company’s share price, driven by concerns over the returns on its artificial intelligence investments.
In contrast, Baupost Group capitalised on the recent downturn in Humana’s stock price by purchasing a $157m in the Kentucky-based insurer as its shares hit their lowest levels since 2020, presenting an attractive opportunity for the value-focused firm.
Additionally, Baupost Group acquired new stakes in several companies including Solventum Corp, the healthcare spinoff from 3M, internet infrastructure provider Verisign, container shipping company WillScot Holdings Corp and luxury goods company Capri Holdings.
The firm’s new investments come on the heels of its reported withdrawal from Bill Ackman’s Pershing Square USA fund in July, despite being initially considered a potential investor.
Baupost Group also decreased its holdings in various companies including internet service provider Viasat, fintech giant Fidelity National Information Services, biotech firm Theravance Biopharma, radio company Liberty SiriusXM and IT consulting firm Jacobs Solutions.
In the second quarter, Baupost Group increased its investments in UK companies including Anglo-American insurance firm Willis Towers Watson and Irish building materials company CRH. The hedge fund also grew its position in British analytics firm Clarivate.
New additions to the portfolio include shares in California biotech Jazz Pharmaceuticals, Pennsylvania-based WESCO International, Texas building materials supplier Eagle Materials, clinical trial firm Fortrea Holdings and data centre operator GDS.
Baupost Group more than doubled its investment in Herbalife Nutrition, capitalising on a significant drop in the company’s stock price to its lowest point since 2009.
