In its second-quarter 13F filing, Seth Klarman's Baupost Group revealed an increase in its managed securities to $5.42 billion and a concentrated portfolio of 23 stocks. The value-oriented fund significantly increased its exposure to mega-cap technology, adding to its top holding, Amazon (AMZN), by 20% and its Alphabet (GOOG) stake by 16%. These two positions, now representing over 25% of the reported portfolio, signal a strong conviction in the long-term economics of the AI leaders.
Beyond big tech, Baupost initiated a notable new position in derivatives marketplace CME Group, valued at over $136 million, and a smaller stake in Axalta Coating Systems. The firm also more than doubled its investment in Norwegian Cruise Line Holdings and significantly increased its stake in Genuine Parts Company by nearly 89%. These additions were balanced by significant reductions in several key holdings. The fund trimmed its positions in Restaurant Brands International (QSR), Union Pacific (UNP), and Wesco International (WSC).
The most significant changes were the complete exits from two recently established positions. Baupost eliminated its entire stake in insurance advisory firm Willis Towers Watson (WTW), which had been a top-ten holding, and sold all of its shares in clinical-stage vaccine developer Vaxcyte (PCVX). The liquidation of these holdings marks a decisive shift in the portfolio for the quarter, reallocating capital towards its highest-conviction technology and industrial names.