Baupost’s Seth Klarman hikes his Meta, Amazon stakes right before the big rebound
by admin ·
Baupost’s Seth Klarman drastically increased his stake in some of the biggest technology companies in the fourth quarter, just before the group staged a big comeback, according a new regulatory filing. The hedge fund manager more than doubled his holding in Google parent Alphabet , making it his seventh biggest stake at the end of 2022. Klarman hiked his Meta bet by 150% to $208 million, while upped his Amazon stake by 300% to a bet worth more than $83 million. Technology stocks, which took a beating last year amid rising rates, rebounded sharply in 2023. Meta has risen nearly 50% year to date, while Amazon has gained nearly 19%. Alphabet is up more than 7% this year. Meta recently got a boost after the social media company r eported fourth-quarter revenue that topped estimates and announced a $40 billion stock buyback. The longtime value investor had reduced his stakes in Alphabet and Amazon by nearly 60% each in the third quarter as sell-off in the tech sector intensified. Klarman has drawn comparisons to Warren Buffett for his disciplined and patient value style. And just like Buffett, Klarman has increased his exposure to the tech sector in recent years to take advantage of its explosive growth. In this case, Klarman significantly increased exposure to the group after prices got a lot cheaper. The hedge fund manager said it posted a mid-single digit decline last year, beating the S & P 500 which fell nearly 20%, the Financial Times reported. He gained $1.6 billion from hedging last year, which helped offset losses on the long side, the FT reported. Other than technology stocks, Klarman added small new bets on cable television provider Altice and Herbalife last quarter.