In this article, we discuss the top 5 stocks to buy now according to billionaire Seth Klarman. If you want to read our detailed analysis of the Klarman’s history, his investment philosophy and hedge fund performance , go directly to the Top 10 Stocks to Buy Now According to Billionaire Seth Klarman.
5. Alphabet Inc. (NASDAQ:GOOG)
The Baupost Group’s Stake Value: $681M
Percentage of The Baupost Group’s 13F Portfolio: 7.32%
Number of Hedge Fund Holdings: 205
With over 3.4 million shares worth at around $9.6 billion, Ken Griffin’s Citadel Investment Group is the largest and leading shareholder in Alphabet Inc. (NASDAQ:GOOG), as of the first quarter of 2022. Seth Klarman’s Baupost Group owns 243,890 shares worth at around $681 million, a substantial increase from the previous quarter where they owned only 228,000 shares. This means that the Baupost Group has increased their hold over the stock by 7%, with Alphabet Inc. (NASDAQ:GOOG) making up 7.32% of the Baupost Group’s 13F portfolio.
On April 19, Rosenblatt analyst Barton Crockett conferred Alphabet Inc. (NASDAQ:GOOG) with a ‘Buy’ rating and $4,183 price target. The analyst noted that no firm is better positioned than Alphabet Inc. (NASDAQ:GOOG) to capitalize on the online sphere, given its “advantageous positioning for new ad privacy restrictions, dominance in viral video and emerging success in cloud services”.
Here is what Farrer Wealth Advisors has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q1 2022 investor letter:
“Alphabet (NASDAQ:GOOG): We won’t waste much time trying to explain to our clients why Alphabet (NASDAQ:GOOG) is such a phenomenal business, we believe that is quite self-evident. The better explanation is why we never bought Alphabet (NASDAQ:GOOG) before. The reason was a personal bias we held based on three beliefs (which we now believe to be incorrect)
Growth in YouTube would stall as the increased ad-load would turn-off viewers (the double ad-load at the beginning of videos for example). Consumers will focus on discovery rather than search to purchase new items. For example – using Instagram/TikTok to decide what new clothes to buy instead of ‘googling’ for clothes. Other Bets: In general, we felt that capital spent on “Other Bets” has been a bit wasteful with the segment earning just around $3.1bn in revenue versus nearly $21bn in operating losses over the last five years…” (Click here to see the full text)
Furthermore, Baron Global Advantage Fund also mentioned Alphabet Inc. (NASDAQ:GOOG) in its Q1 2022 investor letter:
“We have modestly reduced the size of our position in Alphabet Inc. (NASDAQ:GOOG) (from 6.5% at the end of the fourth quarter of 2021 to 5.3% as of the end of the first quarter of 2022), after the stock rallied 64% in 2021 and continued outperforming during the first quarter, declining just 3%.”
Hence, in addition to Meta Platforms, Inc. (NASDAQ:FB), Intel Corporation (NASDAQ:INTC), and Starz Acquisition LLC (NASDAQ:STRZA), Alphabet Inc. (NASDAQ:GOOG) makes it to billionaire Seth Klarman’s list of top 10 stocks to buy.
4. ViaSat Inc. (NASDAQ:VSAT)
The Baupost Group’s Stake Value: $794M
Percentage of The Baupost Group’s 13F Portfolio: 8.54 %
Number of Hedge Fund Holdings: 17
Headquartered in Carlsbad, California, with additional operations across the US, ViaSat Inc. (NASDAQ:VSAT) is a communications company, a provider of high-speed satellite broadband services, and secure networking systems covering military and commercial markets. It is one of the hottest investment interests of elite hedge funds and investment groups, with billionaire Seth Klarman’s Baupost Group owning 16.2 million shares worth more than $794 million, assuming the position of the leading stakeholder in ViaSat Inc. (NASDAQ:VSAT).
3. Intel Corporation (NASDAQ:INTC)
The Baupost Group’s Stake Value: $822M
Percentage of The Baupost Group’s 13F Portfolio: 8.84%
Number of Hedge Fund Holdings: 76
Based in Santa Clara, California, Intel Corporation (NASDAQ:INTC) is an American multinational corporation and technology company, which is the world’s largest manufacturer of the semiconductor chip by revenue and is next on Seth Klarman’s list of top 10 stocks to buy now. Intel Corporation (NASDAQ:INTC) has ranked at No.45 in the 2020 Fortune 500 list of the largest American corporations by revenue for nearly a decade.
Seth Klarman’s Baupost Group is the largest stakeholder in Intel Corporation (NASDAQ:INTC) with an ownership of over 16.5 million shares worth $822 million. Comprising 8.84% of the Baupost Group’s 13F portfolio for Q1 2022, Klarman has actually decreased his hold over the stock by 9%, as opposed to the previous quarter where he owned 18 million shares worth over US$928.9 million.
Here is what Baron Funds, an asset management firm, has to say about Intel Corporation (NASDAQ:INTC) in its Q1 2022 investor letter:
“Intel’s (NASDAQ:INTC) capital spending process is guided by a process they appropriately named “copy exactly.” This means that they attempt to “copy exactly” what they have already built and attempt to improve tried and true processes iteratively.”
According to calculations by Insider Monkey, Intel Corporation (NASDAQ:INTC) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Intel Corporation (NASDAQ:INTC) was in 76 hedge fund portfolios at the end of the first quarter of 2022, compared to 72 funds in the previous quarter, marking a marginal increase in investor interest. However, they have delivered a -13.44% return in the past 3 months.
2. Qorvo Inc. (NASDAQ:QRVO)
The Baupost Group’s Stake Value: $824M
Percentage of The Baupost Group’s 13F Portfolio: 8.86%
Number of Hedge Fund Holdings: 33
Headquartered in Greensboro, North Carolina, Qorvo Inc. (NASDAQ:QRVO) is an American semiconductor company that designs, manufactures and supplies radio-frequency systems to power wireless and broadband communications, in addition to foundry services.
As of Q1 2022, Klarman’s Baupost Group is the leading shareholder in Qorvo Inc. (NASDAQ:QRVO) with an ownership of over 6.6 million shares worth over $824 million, a result of a 12% increase in Klarman’s hold over the stock from the previous quarter, resulting in Qorvo Inc. (NASDAQ:QRVO) representing 8.86% of Baupost’s 13F portfolio. Just a quarter ago, Klarman owned only 5.94 million shares, the increase acting as a testament to Klarman’s confidence in the company.
On April 18 2022, Vijay Rakesh of Mizuho cut the firm’s price target on Qorvo, Inc. (NASDAQ:QRVO) from $155 to $135 and maintained its rating of ‘Neutral’ on the shares, attributing the price target decline to weaker 5G demand and extended COVID lockdowns in China. Therefore, it comes up as the second most favorable investment opportunity in this list of top 10 stocks to buy now according to Seth Klarman.
1. Liberty Global Inc. (NASDAQ:LBTYA)
The Baupost Group’s Stake Value: $1.38B
Percentage of The Baupost Group’s 13F Portfolio: 15.03%
Number of Hedge Fund Holdings: 41
Coming in at number 1 as the top stock to buy now according to billionaire Seth Klarman is London, Amsterdam and Denver-based multinational telecommunications mammoth, Liberty Global (NASDAQ:LBTYA). Formed in 2005 through a merger between Liberty Media (NASDAQ:BATR) and UnitedGlobalCom, the multinational provides video, voice and internet services across the US and Europe. Liberty Global (NASDAQ:LBTYA) reported an overall revenue of $10.3 billion in 2021.
Seth Klarman’s Baupost Group assumes the position of the largest shareholder of the company, owning a massive amount of nearly 54 million shares worth over $1.38 billion. Representing 15.03% of Klarman’s 13F portfolio, with the billionaire maintaining his hold over Liberty Global (NASDAQ:LBTYA) from the previous quarter, the conglomerate speaks volumes of Seth Klarman’s confidence in the stock.
On March 24, celebrated Credit Suisse analyst Luis Sanchez-Lecaroz upgraded Liberty Global PLC’s (NASDAQ:LBTYA) rating from ‘Neutral’ to ‘Outperform’ and upped the price target to $35 from $26. She sees immense potential in Liberty’s (NASDAQ:LBTYA) fiber and other monetization models, and views them as a premium opportunity for investors to familiarize themselves to fiber challenger business markets. Furthermore, according to Bloomberg, the merger between Liberty Global (NASDAQ:LBTYA) and Vodafone (NASDAQ:VOD) has been extremely efficient in raising investor interest with many making bullish advances towards Liberty Global (NASDAQ:LBTYA) this past quarter.
Therefore, Liberty Global Inc. (NASDAQ:LBTYA) makes it to the top of Seth Klarman’s list of the top 10 stocks to buy now.
