Legendary Value Investor Seth Klarman is Selling These 5 Stocks in 2023

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1. Amazon.com, Inc. (NASDAQ:AMZN)

Percentage of Stake Sold: 100%

Number of Hedge Fund Holders: 240

Seth Klarman’s Baupost Group added Amazon.com, Inc. (NASDAQ:AMZN) to its portfolio in the second quarter of 2022. In Q4 2022, the hedge fund owned 990,000 shares of the company worth $83.16 million, representing 1.35% of the total 13F securities. In Q1 2023, Klarman relinquished his stake in Amazon.com, Inc. (NASDAQ:AMZN) entirely. 

On May 8, Loop Capital analyst Rob Sanderson maintained a Buy rating and set a price target of $140 for Amazon.com, Inc. (NASDAQ:AMZN) following the company’s Q1 financial results. In a research note to investors, the analyst acknowledged that concerns about a slowdown at AWS and uncertainties regarding the long-term impact of AI adoption on cloud vendor selection have been suppressing the stock. However, Sanderson believes that this slowdown is temporary and expects a rebound. Additionally, the analyst finds encouragement in recent feedback from industry experts and foresees a re-acceleration of growth as cost-reducing initiatives are implemented.

According to Insider Monkey’s fourth quarter database, 240 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN), compared to 269 funds in the prior quarter. Harris Associates is a prominent stakeholder of the company, with 19.3 million shares worth $1.62 billion. 

Arch Capital made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2023 investor letter:

“Replacing our Wix investment is Amazon.com, Inc. (NASDAQ:AMZN), a company we are sure you have heard of before. We believe the company’s long-term growth runway, profit potential, and competitive advantages were being vastly underrated in early January when its market cap was well below $1 trillion. We think early January was one of those rare times you could buy a special business like Amazon at a discounted valuation. Our hope is that – if we are right about its competitive advantages in retail and cloud computing – our Amazon stake will end up being a permanent holding in the limited partnership.”

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