Hedge fund titan Seth Klarman boosted bets on 3 healthcare stocks and dumped tech giants in the 2nd quarter


Seth KlarmanScott Olsen/Getty Images

Seth Klarman's Baupost Group is relying less on tech giants and more on biotech stocks posting healthy gains in the second half of 2020.

The hedge fund saw the value of its long stock portfolio swell 18% through the second quarter as the stock market rocketed out of its March slump, according to a Securities and Exchange Commission filing disclosed Friday. Klarman maintained large stakes in eBay, Fox Corp, and Liberty Global, but adjusted other elements of his portfolio as investors increasingly crowded cash into popular mega-caps.

The manager slashed his bet on Facebook by 57%, dumping more than 1.1 million shares as the social media giant surged through the quarter. Klarman sold nearly 86,000 shares of Alphabet and cut his position in the Google-parent by roughly 29%.

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The fund also reduced positions in energy companies, including completely selling its stakes in Cheniere Energy and Energy Transfer Equity.

In place of the slimmed-down tech and energy bets, Klarman shifted some cash into healthcare stocks. Two of Baupost's three biggest second-quarter buys were in the sector. Both the fund's biggest new position and biggest increase involved healthcare stocks, as well.

Here are the billionaire fund manager's three growing healthcare bets:

  1. Atara Biotherapeutics
    • Ticker: ATRA
    • Baupost portfolio value: $145 million
    • Change in stake: 19.4% increase
  2. HCA Holdings
    • Ticker: HCA
    • Baupost portfolio value: $97 million
    • Change in stake: New position
  3. Translate Bio
    • Ticker: TBIO
    • Baupost portfolio value: $323 million
    • Change in stake: 2.9% increase

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