Seth Klarman is one of the most respected value investors of his era. As the founder of The Baupost Group, Klarman has built a reputation for patient, disciplined investing rooted in deep fundamental analysis and a contrarian mindset. His strategy centers on buying undervalued assets, often in unpopular or overlooked corners of the market, and holding them until intrinsic value is realized.
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Klarman’s approach is defined by capital preservation, rigorous downside risk assessment, and a willingness to hold cash when opportunities are scarce. He is known for avoiding the market’s short-term noise, instead focusing on situations where mispricing is significant and catalysts for value realization are clear. This discipline has allowed Baupost to consistently deliver strong, risk-adjusted returns over multiple decades.
With approximately $26 billion in assets under management and over $7.4 billion in publicly disclosed U.S. equities as of March 31, 2025, Baupost’s latest 13F filing offers insight into how one of the most patient and selective investors in the world is positioning for value in a challenging market. The portfolio reflects a concentrated set of high-conviction positions, consistent with Klarman’s belief that great opportunities are rare and worth waiting for.
1. Willis Towers Watson PLC (WTW) 11.88% of portfolio
Willis Towers Watson is Baupost’s largest disclosed U.S. equity position, representing 11.88% of the portfolio with a market value of approximately $515.6 million through 1.53 million shares. The firm trimmed its stake by just over 311,000 shares last quarter, a 16.94% reduction. Despite the sale, WTW remains a core holding for Baupost, underscoring Klarman’s confidence in its long-term fundamentals.
The scale of the position speaks to Klarman’s interest in durable, cash-generative business models, particularly in insurance brokerage and risk management services. The partial trim likely reflects portfolio rebalancing rather than a shift in conviction, as Baupost has historically favored companies with predictable cash flows and pricing power.
WTW’s recurring revenue base, strong client relationships, and consistent margin profile make it a classic fit for Klarman’s value-oriented, downside-protected approach.
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2. Alphabet Inc (GOOG) 7.48% of portfolio
Alphabet Inc. makes up 7.48% of Baupost’s portfolio, valued at approximately $324.6 million across 2.08 million shares. The firm increased its stake by 652,000 shares last quarter, a sizable 45.72% boost that signals growing confidence in Alphabet’s long-term positioning. This is notable because Baupost, historically focused on deep value, has shown more openness in recent years to large-cap growth names when they offer a compelling valuation and strong fundamentals.
Alphabet remains one of the most dominant forces in digital advertising, cloud computing, and artificial intelligence. For Klarman, the draw is likely Alphabet’s ability to pair exceptional revenue growth with a fortress balance sheet and significant free cash flow generation. The expansion of AI-driven products like Gemini and continued momentum in Google Cloud further enhance its long-term earnings power.
Increasing the stake here suggests Baupost sees current valuations as attractive relative to Alphabet’s leadership position in several high-growth markets.
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3. Wesco International Inc (WCC) 7.18% of portfolio
Wesco International Inc. represents 7.18% of the portfolio, valued at roughly $311.5 million through 2.01 million shares. Baupost boosted its holdings by 569,930 shares in the last quarter, a 39.7% increase that reflects meaningful confidence in Wesco’s near- and long-term prospects. This is the type of industrial, distribution-focused business that tends to fit well with Baupost’s preference for cash-flow stability and defensible market positions.
Wesco is a leading distributor of electrical, communications, and utility products, serving as a critical link in supply chains for construction, infrastructure, and industrial projects. For Klarman, the attraction here may be tied to infrastructure spending tailwinds, supply chain modernization trends, and Wesco’s ability to generate steady margins in a cyclical but essential industry.
The position increase hints that Baupost sees both valuation upside and a supportive macro backdrop for Wesco’s core markets.
4. Sunrise Communications AG (SUNN) 7.02% of portfolio
Sunrise Communications AG is Baupost’s fourth-largest position, accounting for 7.02% of the portfolio with a market value of roughly $461.9 million through 9.34 million shares. This is a brand-new position, with the firm initiating its stake during the quarter, and at a size that instantly placed it among the group’s top holdings. That type of aggressive entry suggests a high level of conviction from Klarman and his team.
Sunrise operates in the Swiss telecommunications market, offering mobile, broadband, and TV services with a strong market share and recurring revenue. For Baupost, the appeal is likely in the stability and predictability of telecom cash flows, especially in a relatively concentrated market like Switzerland.
Given Klarman’s history of targeting underappreciated assets in less volatile sectors, Sunrise offers both income stability and the potential for steady, modest growth, precisely the kind of combination that aligns with Baupost’s patient investment style.
5. Liberty Global (LBTYK) 6.80% of portfolio
Liberty Global Ltd. accounts for 6.80% of Baupost’s portfolio, valued at $295.2 million across a massive 24.66 million shares. The firm reduced its position by nearly 14.8 million shares last quarter, a 37.5% cut that marks a significant repositioning. Still, Liberty Global remains a top-five holding, suggesting Klarman retains conviction in the long-term thesis despite the sale.
Liberty operates a portfolio of telecom and broadband assets across Europe, and Klarman has held a long-standing interest in the company’s asset base, cash flow generation, and strategic flexibility. The trim could reflect profit-taking after periods of relative strength, a shift toward other opportunities, or adjustments based on currency and regional risk considerations.
For value-focused investors like Klarman, Liberty’s deep asset value and ability to generate substantial free cash flow make it a name worth holding onto, even at a reduced weight.
Klarman’s Portfolio Anchors on Value and Patience
Seth Klarman’s Baupost Group is built on a deep-value investing philosophy that prizes patience, discipline, and downside protection. Rather than chasing momentum or market fads, Klarman focuses on undervalued assets with strong fundamentals, often taking contrarian positions that others overlook. His strategy blends public equities, distressed debt, and special situations, always with a sharp eye on risk-adjusted returns.
By Q1 2025, Baupost’s top five public equity holdings reflected this approach: Willis Towers Watson and Sunrise Communications, steady, cash-generating businesses with durable competitive advantages, alongside targeted positions in Alphabet, Wesco International, and Liberty Global.
Collectively, these holdings highlight Klarman’s preference for businesses with predictable cash flows, structural moats, and the potential for significant upside over the long term, even if it means waiting years for the market to recognize their value.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
