Seth Klarman Takes Fiserv, Shu

Seth Klarman
(Trades, Portfolio), the portfolio supervisor of Baupost Group, disclosed this week that his firm’s prime five trades during the fourth quarter of 2021 involved new positions in Fiserv Inc. (FISV, Monetary) and favored shares of Garrett Movement Inc. (GTX, Economical), the closure of its holdings in eBay Inc. (EBAY, Economic) and Shaw Communications Inc. (SJR, Monetary) and a reduction to its posture in Micron Engineering Inc. (MU, Monetary).

Klarman retains an economics degree from Cornell University and an MBA from Harvard University. The guru’s Boston-centered company invests in a large selection of securities, which include popular and chosen inventory, distressed financial debt, liquidations and overseas equities and bonds. The creator of “Margin of Safety” warned that investing is not just about creating complete returns, but also focusing on the hazards associated with generating claimed returns.


As of December 2021, Baupost’s $10.10 billion equity portfolio is made up of 53 stocks, with 8 new positions and a quarterly turnover of 11%. The prime two sectors in conditions of pounds are technological know-how and conversation expert services, with weights of 40.57% and 38.35%, respectively.



Baupost purchased 3.05 million shares of Fiserv (FISV, Financial), supplying the situation a 3.13% fairness portfolio weight. Shares averaged $103.27 for the duration of the fourth quarter the inventory is modestly undervalued based mostly on Tuesday’s cost-to-GF-Benefit ratio of .76.


GuruFocus ranks the Brookfield, Wisconsin-primarily based bank loan processing software package company’s profitability 8 out of 10 on numerous good investing signs, which involve a large Piotroski F-rating of 7, a three-12 months revenue growth rate that outperforms over 80% of global opponents and financial gain margins that outperform extra than 69% of global computer software companies.


Other gurus with holdings in Fiserv incorporate Dodge & Cox,
ValueAct Holdings LP
(Trades, Portfolio) and
Monthly bill Nygren
(Trades, Portfolio).


Garrett Movement

Baupost acquired 25,480,292 preferred shares of Garrett Movement (GTX, Economical), giving the posture 2.11% of fairness portfolio space. Shares averaged $8.13 through the fourth quarter.


GuruFocus ranks the Swiss vehicle areas company’s profitability 6 out of 10 on the back of earnings margins and returns outperforming additional than 83% of world-wide rivals even with three-year earnings decrease prices underperforming far more than 70% of global automobiles and components providers.



Baupost offered all of its 5,982,667 shares of eBay (EBAY, Economic), trimming 3.84% of its equity portfolio.


Shares of eBay averaged $71.31 all through the fourth quarter the inventory is modestly undervalued based mostly on Tuesday’s price tag-to-GF-Value ratio of .89.


GuruFocus ranks the San Jose, California-based e-commerce company’s profitability 8 out of 10 on various good investing signs, which involve a significant Piotroski F-score of 7 and financial gain margins and returns outperforming more than 96% of international rivals.


Shaw Communications

Baupost sold all 7,530,807 of its shares of Shaw Communications (SJW), trimming 2.01% of its equity portfolio.


Shares of Shaw averaged $29.24 all through the fourth quarter the inventory is reasonably valued based on Tuesday’s rate-to-GF-Worth ratio of .93.


GuruFocus ranks the San Jose, California-primarily based water support company’s economical toughness 3 out of 10 on several warning symptoms, which include a weak Altman Z-score of .87 and curiosity coverage and credit card debt ratios underperforming extra than 77% of world competition.


Micron Engineering

The organization offered 3.913 million shares of Micron Technology (MU, Economic), slashing 54.62% of the placement and 2.56% of its fairness portfolio.


Shares of Micron averaged $78.57 through the fourth quarter the inventory is modestly overvalued dependent on Monday’s rate-to-GF-Value ratio of 1.20.


GuruFocus ranks the Boise, Idaho-primarily based semiconductor company’s profitability 9 out of 10 on a number of good investing indications, which involve a 4.5-star business predictability rank, a higher Piotroski F-score of 9 and an running margin that has increased additional than 30% for each calendar year on ordinary in excess of the earlier five years and is outperforming about 85% of world-wide competitors.


Gurus with holdings in Micron Engineering consist of PRIMECAP and
Li Lu
(Trades, Portfolio)’s Himalaya Cash Management.