Seth Klarman's Baupost Group added positions in energy, biotech, and telecoms during the second quarter while reducing its exposure to key energy stocks, according to a 13F filing. It is important to note that most of Baupost's investments are in assets which are not required to be reported with the SEC, so the equities mentioned represent just a small picture.
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Seth Klarman: New Acquisitions
During the second quarter, Seth Klarman added three new positions to his fund: Sanchez Energy Corp., Biotie Therapies Corp. and Frontier Communications Corp.
The biggest buy was Frontier Communications Corp. Seth Klarman acquired both the common and series A preferred stock of Frontier for Baupost and the total value of the position stood at just under $100 million at the end of the second quarter.
Baupost started buying Biotie Therapies Corp., the Finish biotech group during April by means of subscribing for convertible promissory notes and other equity-based instruments. The issue of the notes was part of Biotie’s plan to strengthen its capital structure to finance a Phase 3 double-blinded clinical trial, including the open-label extension, of its lead product candidate tozadenant in Parkinson's disease.
Seth Klarman’s new position in Sanchez Energy follows a similar move by Lee Cooperman's Omega Advisors at the end of last year.
Seth Klarman: Increased Positions
Along with Sanchez, Seth Klarman also added to a number of existing energy positions during the second quarter.
Baupost increased it position in Cheniere Energy Inc. by 11.3% to 15,365,230 million shares, roughly 18.3% of the fund’s total portfolio. Klarman increased his position in Pioneer Natural Resources by 28.4% to just over four million shares, or 9.7% of Baupost’s portfolio.
Further, Klarman hiked his PBF Energy holding by 27.3%, to 11.03 million shares, 5.4% of Baupost’s portfolio.
The biggest add on a percentage basis was NovaCopper Inc., where Klarman nearly doubled his position, although Nova only accounts for a tiny fraction of Baupost’s portfolio (0.08%)
Other position increases include Keryx Biopharmaceuticals Inc (15.2%), Veritiv Corp. (9.1%), SunEdison Semiconductor Ltd. (5.1%), Atara Biotherapeutics Inc. (1.0%) and Theravance Biopharma Inc. (0.8%).
Seth Klarman: Decreased Positions
Seth Klarman reduced his stake in five holdings during the second quarter. In terms of the number of shares held by Baupost, the fund’s biggest position reduction was Alliance One International Inc. with the holding reduced by 90%. However, during the quarter Alliance One conducted a 1-for-10 reverse stock split on Monday, June 29, 2015, the Company's common stock began trading on the split-adjusted basis. On a dollar basis, Klarman’s Alliance One position almost doubled during the quarter.
Other positions reduced during the quarter were Alon USA Partners LP (-34.1%), Kosmos Energy Ltd. (-17.2%), Antero Resources (-14.2%), Paratek Pharmaceuticals (-11.0%) and Ocwen Financial Corp. (-2.3%).
Seth Klarman didn’t sell any positions during the second quarter.
Baupost SEC filings
The post Seth Klarman Buys Sanchez Energy, Biotie, and Frontier Communication appeared first on ValueWalk.
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