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Seth Klarman Portfolio: Top 4 New Stock Picks in 2024

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In this article will see top 4 stock picks of Seth Klarman from the first quarter of 2024. To see Klarman’s take on the current market situation and details on his returns, click: Seth Klarman 2024 Portfolio: Top New Stock Picks.

For this article, we chose stocks in which Seth Klarman opened new positions or increased his hold in the first quarter of 2024.

4. Herbalife Ltd. (NYSE:HLF)

Seth Klarman’s Stake Value: $22,561,000

Fitness supplements and nutritional products company Herbalife Ltd. (NYSE:HLF) got Seth Klarman’s attention in the fourth quarter of 2022, when the value investor bought two million shares of the company. In the fourth quarter, Baupost increased its position in Herbalife Ltd. (NYSE:HLF) by 20%, ending the quarter with a $22.6 million position in the company. Herbalife Ltd. (NYSE:HLF) shares have lost about 29% so far this year.

3. WESCO International, Inc. (NYSE:WCC)

Seth Klarman’s Stake Value: $35,236,000

WESCO International, Inc. (NYSE:WCC) provides electrical, power, security and logistics solutions. WESCO International, Inc. (NYSE:WCC) is up about 8% so far this year. Of the 933 hedge funds in Insider Monkey’s database, 39 hedge funds reported having stakes in the company. Seth Klarman opened a new position in WESCO International, Inc. (NYSE:WCC) during the first quarter, worth about $35.2 million.

Here is what Artisan Partners had to say about WESCO International, Inc. (NYSE:WCC) in its Q1 2024 investor letter:

“We ended our investment campaigns in Lululemon, WESCO International, Inc. (NYSE:WCC) and BJ’s Wholesale Club during the quarter. WESCO’s 2020 acquisition of Anixter made it the largest US electrical and data center distributor, further strengthening its brand and allowing the company to benefit from supply chain advantages. Our thesis was that the company would benefit from incremental spending increases due to multiple secular trends (energy transition, electrification, reshoring, etc.) while capturing cross-selling opportunities between the two customer bases. Since initiating the position, we have been disappointed in financial results and decided to exit it in favor of higher conviction beneficiaries of these secular trends.”

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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