Seth Klarman’s Portfolio: Top 5 Stock Picks

2. Intel Corporation (NASDAQ:INTC)

Klarman’s Stake Value: $1.22 billion

Percentage of Seth Klarman’s 13F Portfolio: 9.9%

Number of Hedge Fund Holders: 78

Intel Corporation (NASDAQ:INTC) is a California-based firm that markets technologies for smart devices and is among the worlds largest semiconductor manufacturers. Ranked second on our list of the top 10 stocks in Seth Klarman’s portfolio, Intel Corporation (NASDAQ:INTC) has a market capitalization of $219.24 billion.

At present, Seth Klarman’s Baupost Group holds more than 21.7 million shares of Intel Corporation (NASDAQ:INTC), worth over $1.22 billion and representing 9.9% of the investment fund’s portfolio. At the end of the second quarter of 2021, 78 hedge funds in the database of Insider Monkey held stakes worth $6.7 billion in Intel Corporation (NASDAQ: INTC), down from 83 in the previous quarter worth $7.6 billion.

The company issued its quarterly earnings report for the second quarter of 2021 on July 22, with reported earnings per share at $1.24, surpassing estimates by $0.21. Additionally the reported revenues came at $18.53 billion, crossing estimated revenues by $735.06 million.

Alger Spectra Fund, in their Q1 2021 investor letter, mentioned Intel Corporation (NASDAQ: INTC). Here is what the fund said:

“Short exposure to Intel also detracted from performance. Intel designs and manufactures semiconductors for the computing and communications industries. Intel’s proprietary intellectual strength and manufacturing prowess versus the competition is
deteriorating, which is causing the company to lose market share and profit opportunities. The short position detracted from portfolio returns as the share price reacted positively to the announcement of Pat Gelsinger being hired as chief executive officer, a stronger-than-anticipated quarterly earnings report driven by unusually robust PC sales that we believe are unsustainable and the unveiling of “Intel Unleashed,” a new long-term program to help improve manufacturing and spur innovation. This program involves opening two fabrication plants in Arizona, which confirms Intel’s commitment to continue as an integrated design manufacturer. Importantly, Intel continues to experience issues with its next generation server chips which are disadvantaging Intel versus the competition.”