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

Scott Olsen/Getty ImagesSeth Klarman, founder and president of the Baupost Group, a Boston based private investment partnership, arrives for the Allen & Company Sun Valley Conference on July 8, 2014 in Sun Valley, Idaho

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%.


Read more:
JPMorgan pinpoints the triggers for a bond sell-off that can cause unusually large losses in everything from stocks to gold – and lays out how to be ready for it

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 [INDENT-PLACEHOLDER #1]
  2. HCA Holdings [INDENT-PLACEHOLDER #2]
  3. Translate Bio [INDENT-PLACEHOLDER #3]


Now read more markets coverage from Markets Insider and Business Insider:



Fed raises concerns of slowing economic rebound in most recent meeting minutes



Gen Z and millennial investors are taking more and more risks as trading activity surges, E-Trade says



Inside Eagle Investors, the 20,000-member online community run by 2 Indiana University students that’s helping spearhead the Gen Z day-trading revolution

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.