Seth Klarman's Baupost Exits Amazon, Loads Up On Dollar General

Amazon logistics center in Germany.

Hauke-Christian Dittrich / picture alliance via Getty Images

Key Takeway

  • Hedge fund Baupost Group shed its $125 million Amazon stake in the third quarter, a U.S. regulatory filing showed.
  • New positions were taken by Baupost in Tower Semiconductor and Clarivate in the same period.
  • Alphabet remains one of the hedge fund's largest holdings, the filing disclosed.

Billionaire hedge fund investor Seth Klarman's Baupost Group had another change of heart on Amazon Inc. (AMZN), choosing to focus instead on infrastructure in the third quarter.

Baupost exited from a 963,000-share position worth $125 million in Amazon Inc., according to its latest 13F filing posted on Monday for the three months ended Sept. 30.?The fund had bought shares in the first quarter of the year before tech stocks rallied, but then exited the position and re-established it in the second quarter.?

New positions were acquired by the firm in Tower Semiconductor (TSEM) and Jacobs Engineering (J), while the company adjusted other existing holdings such as those in a discount retailer and a building materials company.

New Positions in Analytics, Construction, and Engineering

Tower Semiconductor, based in Migdal Haemek, Israel, is down about 38% year-to-date but jumped roughly 4% on Tuesday. Klarman's firm took a new 2.85-million-share stake in the company valued at $70 million in the quarter ended September.

Baupost also made a $150 million bet on 22.5 million shares in London-based analytics firm Clarivate (CLVT) and bought around 488,000 new shares in Texas company Jacobs Solutions.

Other Changes to Holdings

As of the third quarter, value investor Klarman's company held positions in 32 stocks, with its largest positions in Liberty Global PLC (LBYTB), Veritiv Corp (VRTV), and Alphabet Inc (GOOG).

The company raised its stake in Willis Towers Watson PLC (WTW), with an additional 653,300 shares, bringing the total to 1.56 million shares, valued at $325 million. In Dollar General Corp (DG), the company added 685,000 shares for a stake worth $98.08 million.

The largest position add was in CRH PLC (CRH) with the purchase of roughly 3.3 million shares, valued at $183 million, comprising 3.5% of Baupost's portfolio.

Stakes were reduced in Qorvo Inc (QRVO), by 1.68 million shares and by about 20 million shares in Garrett Motion Inc (GTX). Union Pacific Corp. (UNP) was another reduction, with a liquidation of a 175,000-share holding.

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  1. Securities and Exchange Commission. "Baupost Group Q3 Filing."

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