, the legendary investor of the Boston-based Baupost Group,
bought four new stocks in the first quarter, according to
GuruFocus Real Time Picks Data. He is a cautious value investor
who often holds significant cash reserves when profitable ideas
do not present themselves. "In my opinion, the market tells you
when you buy things. And when things are really cheap, on a
Graham and Dodd valuation basis, you should like them more," he
said in an
Endowment Management Seminar in 2008
The New Buys of First Quarter 2013
AIG Warrants (
Klarman bought 638,943 AIG warrants in the first quarter, which
have a value of $9.71 million. AIG issued warrants in January
2011 as part of its recapitalization. The warrants grant the
holder the right to purchase AIG shares at $45 per share at any
time in the next 10 years. The warrants reached a 52-week high of
$19.75 this week.
Klarman bought 207,300 shares of his third largest new buy at $52
per share in the first quarter. The current price is $64.70.
Klarman traded a larger holding several years ago, buying shares
at an average price of $30 and selling two quarters later at an
average price of $37.
Directv is a provider of digital television entertainment in the
U.S. and Latin America. Directv has a market cap of $35.91
billion; its shares were traded at around $64.71 with a P/E ratio
of 13.80 and P/S ratio of 1.30. Directv had an annual average
earnings growth of 28.5% over the past five years.
Citigroup Warrants (
Klarman in his second largest new holding purchased 94,137,507
warrants of Citigroup (
), which have a value of $47.63 million.
Citigroup warrants are now trading at $0.62, near their 52-week
high of $0.63, and off their 52-week low of $0.29.
Elan Corp. PLC (
Klarman bought 9,126,227 shares of Elan Corp. PLC, his largest
new holding, at an average price of $11 per share in the first
quarter. The stock gained 4% since then from his average purchase
Elan Corp. is an Ireland-based neuroscience-based biotech company
working to develop much-needed medical therapies. Elan
shareholders filed a lawsuit this week against guru
of SAC Capital for alleged insider trading.
Elan Corp PLC has a market cap of $6.91 billion; its shares were
traded around $11.45 with a P/S ratio of 853.30 and P/B of 10.6.
Also check out the
, Top Growth Companies and High Yield stocks of Seth
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