Amazon, Google and Herbalife: billionaire Seth Klarman revealed last quarter's deals

Billionaire Seth Klarman's investment company has noticeably shifted its focus to retail and healthcare in the fourth quarter of 2025, sacrificing stakes in the technology and construction sectors. According to the 13F report, Baupost Group's fund conducted a major capital rotation: the investor revamped the composition of the fund's largest positions, betting on new favorites and redistributing weights among key assets.

The main event of the quarter was the purchase of Amazon shares: Klarman bought shares of the retailer, which immediately took the second place in the portfolio by weight. The fund bought more than 2.1 million Amazon securities for $489.7 million, giving the asset a 9.3% share of the total portfolio. This maneuver brought the retailer close to Baupost's long-time portfolio leader, Canadian fast-food restaurant operator Restaurant Brands International (10.4%).

Amazon became Klarman's second bet on the "Magnificent Seven" giants. Before that, the investor held only Alphabet securities. In the fourth quarter of 2025, the investor reduced his stake in Alphabet by 41.5%, selling more than 770 thousand shares. Other representatives of the "Magnificent Seven" - Apple, Microsoft, Meta, Nvidia and Tesla - are not in the portfolio of Baupost Group.

In addition, new positions in the healthcare and transportation segments appeared in Klarman's portfolio. Among medical companies Klarman chose the American insurance company Molina Healthcare: the fund bought 625 thousand shares for $108.5 million. Another new name in the portfolio was Mexican air carrier Grupo Aeromexico - the fund bought 4.8 million of its shares for $106.6 million. These investments took 2.05% and 2.02% of the portfolio respectively.

Klarman also deployed capital into consulting and finance in the fourth quarter. The position in Willis Towers Watson grew by 24.7% - the fund bought more than 268 thousand shares of this global consulting and brokerage company, bringing the total value of the stake to $446.1 million.

The investor increased its position in U.S. fintech Fidelity National Information Services by 18.8%, bringing its value to $299.3 million. In the industrial sector, Baupost Group increased its investment in building materials manufacturer Eagle Materials by a quarter, and also bought securities of railroad operator Union Pacific by 8.8% and auto parts supplier Genuine Parts by 6.5%. The list of purchases for the quarter was closed by a 19.3% increase in its stake in Herbalife, which is now worth more than $119 million.

In the fintech sector, Klarman has increased its position in US fintech Fiserv by 146% - this $147.8m asset now holds 2.8% of the portfolio. At the same time, the fund completely exited the capital of Brazilian payment service PagSeguro Digital, realizing all 2.5 million shares.

The construction sector underwent a significant rotation: the investor got rid of 68% of its stake in Irish CRH PLC, selling 2.3 million shares. The fund also cut its stake in energy company Tamboran Resources and class A shares of media holding Liberty Global by more than half. The reduction affected retailer Dollar General - its share in the portfolio fell by 22.7%.

Spot sales also took place in the securities of GDS Holding, WESCO International Inc., Ferguson and Americold Realty Trust. Even in the key positions of the fund there were spot sales: shares in the perennial favorite Restaurant Brands International and medical insurer Elevance Health were reduced by 2.1% and 3.8%, respectively.

At the end of the fourth quarter 2025, Seth Klarman's portfolio remains highly concentrated with only 22 positions. The bulk of the capital is allocated between consumer discretionary, financials, healthcare and technology. Restaurant Brands International remains the weight leader in the portfolio with a 10.44% stake. It is followed by Amazon (9.28%), Willis Towers Watson (8.45%) and Elevance Health (8.43%). Rounding out the top five investments is railroad operator Union Pacific Corp, which accounts for 7.13% of the fund's assets.

This article was AI-translated and verified by a human editor