Billionaire investor Seth Klarman takes a $645 million stake in food-delivery app Just Eat

Seth Klarman, CEO of the Baupost Group.
Seth Klarman, CEO of the Baupost Group. Drew Angerer/Getty Images

Seth Klarman’s hedge fund has purchased a 3.5% stake in food-delivery app Just Eat Takeaway, according to a Thursday filing.

Baupost, which manages about $32 billion, acquired 7.5 million shares in a transaction dated August 4. Based on Wednesday’s closing price, those shares are worth $645 million.

Just Eat Takeaway was formed by the merger of UK-based Just Eat with Dutch rival Takeaway last year. Its shares are down 19% so far this year, despite takeaway-delivery services booming during the pandemic as people ordered in more and frequented restaurants less often.

The company’s deliveries rose 42% to 588 million in 2020, driving revenue up 54% to $2.7 billion. Strong financial results from Berlin-based competitor Delivery Hero and the UK’s Deliveroo this week showed that consumers have an increasing desire for convenience and speed.

Just Eat Takeaway completed its $7.3 billion acquisition of Chicago-based Grubhub this year, making it the world’s largest online food delivery company outside of China.

Klarman, a value investor regarded as “the next Warren Buffett,” has made other technology bets in recent months.

He invested $200 million in ad-tech company Outbrain last month ahead of its planned IPO. Last year, he revealed stakes worth more than $300 million in tech titans Alphabet and Facebook. He also holds a $400 million stake in Bill Ackman’s blank-check company, Pershing Square Tontine.

Baupost declined to comment, while Just Eat Takeaway didn’t immediately respond to an email from Insider.

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