economy
Value investor Seth Klarman added Amazon last quarter. Here's what else he bought
The Boston-based hedge fund manager took a new position in the hyperscaler amounting to $489.7 million.
TL;DR
- Baupost Group, led by Seth Klarman, acquired a new $489.7 million position in Amazon in the fourth quarter.
- Amazon has declined 13% year-to-date, with tech stocks facing valuation fears.
- Klarman, known for value investing, has historically struggled as growth stocks dominated the market.
- Analysts see Amazon as a buying opportunity despite recent earnings misses and margin concerns.
- Klarman may be attracted to Amazon's forward P/E of 25, lower than its 5-year average of 35.
- Baupost also initiated stakes in Grupo Aeromexico and Molina Healthcare, increased holdings in Fidelity Information Services and Willis Towers Watson, and reduced positions in Restaurant Brands International and Alphabet.