market folly

Seth Klarman's hedge fund firm Baupost Group just recently filed a slew of disclosures with the SEC so let's break them down. Firstly, we'll start with the amended 13D and Form 4 regarding shares of Facet Biotech (FACT). As per the SEC filings, Klarman's fund sold 500,000 shares of FACT at a price of $26.96 on April 8th, 2010. After this transaction, Baupost Group is left with 1,500,000 shares of FACT (a 5.98% ownership stake in the company). In mid-March we noted that Baupost already sold some FACT shares, so this trend has continued. Remember that of course Facet Biotech saw a bid from Abbott Laboratories (ABT) to acquire the company for $27 per share, a 70% premium from where shares were trading before the bid.

Secondly, we see that Seth Klarman has filed an amended 13G on shares of ViaSat (VSAT). Due to activity on March 31st, 2010, we see that Baupost now shows a 22.05% ownership stake in the company with 8,706,700 shares. This is an increase over their previous stake in VSAT because back on December 31st when we looked at Baupost's portfolio, we saw that they owned 4,915,901 shares. This mean's they've increased their position by 77%, buying 3,790,799 more shares of VSAT.

Lastly, Baupost Group filed an amended 13G on shares of Theravance (THRX). Due to activity on March 31st, 2010, Klarman's firm now has a 20.44% ownership stake in THRX with 13,000,000 shares. This is an increase in their stake as they previously owned 10,100,000 shares back on December 31st when we examined Klarman's investments. Over the past three months, Baupost Group has increased their Theravance position by 28.7%, buying 2,900,000 more shares.

So, to wrap things up: Baupost Group sold some FACT, really boosted their stake in VSAT and then added to their THRX position as well. For more insight from this investment guru, check out Seth Klarman's lessons from the financial crisis. And as always, to see what other companies Klarman's firm is investing in, head to Baupost Group's portfolio.