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Seth Klarman 2024 Portfolio: Top New Stock Picks

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Value investing is back in the limelight as investors prepare for a higher-for-long interest rate environment. Legendary value investor Seth Klarman had said in his 2000 letter to investors that while value investing might underperform the broader market amid changing investment sentiment, value investing as a basic investment principle and strategy would never go out of style.

“We are not seeking to keep up with any particular market index or benchmark. Rather, we are attempting to achieve good risk-adjusted investment results over time through the successful implementation of our investment philosophy. We continue to believe strongly in a value investment approach, attempting to buy assets or businesses at a considerable discount to underlying value. Bargains exist because the financial markets are inefficient, yet many investors lack the requisite patience and discipline to take advantage of them. A value approach may outperform or underperform the overall market at various times because of changing investor sentiment, but we believe that a value philosophy never goes out of style. When sentiment towards undervalued sectors of the market is at its nadir, it is the best time to be buying value.”

Seth Klarman is Investing in AI, Growth Stocks in 2024

A cursory glance at Seth Klarman’s Q1’2024 portfolio shows that the value investor is no longer limiting himself to defensive stocks with attractive valuation metrics. He’s investing in some high-growth, loss-making companies as well which are expected to grow in the future. Klarman has time and again said that value investing does not mean adhering to a set pattern without any flexibility.

What Makes a Stock Undervalued According to Klarman?

In his 2000 letter he said that he’d consider a stock undervalued if its undervaluation is “substantial” and there are enough catalysts to help it reach its true value in the future. Klarman also said the underlying business of the company he’d like to investing should be “growing, not eroding.”

Seth Klarman wrote “Margin of Safety” back in 1991. The book, just like Klarman’s investments, aged well, and after years of gaining no attention from the Wall Street, became a value investing bible and cult classic in the investing landscape. Talking about his book and investing philosophy on Capital Allocators with Ted Seides last year, Klarman said any piece of financial writing or advice should stand the test of time. He gave the example of  Security Analysis written by Benjamin Graham and David Dodd,  saying the companies and case studies mentioned in the book are no more, but the principles and strategies continue to stay relevant. Klarman thinks even if humans are replaced by computers, these timeless investing principles will stay valid.

Klarman also said chances of making money by investing in “widely-followed” stocks are not that high.

“Looking at what everybody else is looking at is probably not that interesting. If you are doing to look at what everybody else looks at, look at it in a highly differentiated way. But you are not going to make money by outsmarting people on widely followed stocks with an undifferentiated opinion.”

Seth Klarman Portfolio 2024Seth Klarman Portfolio 2024

Seth Klarman Portfolio 2024

Baupost Group Returns

The media-shy billionaire, worth about $1.3 billion, founded Baupost Group in 1982. While the fund doesn’t publicly share its returns, a Wall Street Journal report last year disclosed that Baupost has returned on average about 20% annually since its inception.

For this article we scanned Klarman’s Q1’2024 portfolio and chose three exciting stocks he bought new stakes in during the first quarter. Unlike NVIDIA Corp (NASDAQ:NVDA), Amazon.com Inc (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG), which everyone is buying, you will see some new names in the portfolio. To see more new stocks in Klarman’s portfolio, click Top 4 New Stock Picks of Seth Klarman in 2024.

SoundHound AI, Inc. (NASDAQ:SOUN)

Seth Klarman’s Stake Value: $5,554,000

Value investor Seth Klarman piling into a high-growth AI stock that has run more than 163% so far this year is news in its own. SoundHound AI, Inc. (NASDAQ:SOUN) is a California-based AI voice and speech recognition solutions company that came to the limelight following the AI revolution after the launch of ChatGPT. Seth Klarman’s Baupost reported owning a $5,554,000 stake in SoundHound AI, Inc. (NASDAQ:SOUN) during the first quarter of 2024. In addition to NVIDIA Corp (NASDAQ:NVDA), Amazon.com Inc (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG), AI-focused investors are also buying SOUN.

Fortrea Holdings Inc. (NASDAQ:FTRE)

Seth Klarman’s Stake Value: $12,194,000

Healthcare solutions company Fortrea Holdings Inc. (NASDAQ:FTRE) is one of the stocks Seth Klarman is buying in 2024. His hedge fund Baupost opened a $12,194,000 stake in Fortrea Holdings Inc. (NASDAQ:FTRE) during the March quarter this year.

Of the 933 hedge funds tracked by Insider Monkey as of the end of 2023, 31 hedge funds reported owning stakes in Fortrea Holdings Inc. (NASDAQ:FTRE).

In May Fortrea Holdings Inc. (NASDAQ:FTRE) posted Q1 results. Adjusted EPS in the period came in at -$0.04, missing estimates by $0.04. Revenue fell 4.6% year over year to $662.1 million, missing estimates by $92.48 million.

Unlike NVIDIA Corp (NASDAQ:NVDA), Amazon.com Inc (NASDAQ:AMZN) and  Alphabet (NASDAQ:GOOG), FTRE is a small company with low hedge fund sentiment.

Vltava Fund mentioned Fortrea Holdings Inc. (NASDAQ:FTRE) in its Q4 2023 investor letter. Here is what the firm has to say:

“Value can be created in various ways. Acquisition is one possibility. So-called spin-offs represent another. This involves hiving off a part of a company into a separate entity and taking it to market. One such spin-off occurred last summer with LabCorp. It spun off a smaller part of the company under the name Fortrea Holdings Inc. (NASDAQ:FTRE). For each of their shares, LabCorp shareholders received one share of the new Fortrea. It started trading at a fairly attractive price, so we sold immediately. Considering the price we got, we could say that this spin-off brought us some value, but it was only a one-off transaction and not a very large one at that.”

GDS Holdings Limited (NASDAQ:GDS)

Seth Klarman’s Stake Value: $17,290,000

China-based data center company GDS Holdings Limited (NASDAQ:GDS) is another growth stock Seth Klarman bought in the first three months of 2024. So far this year GDS Holdings Limited (NASDAQ:GDS) shares have gained about 8% in value.

  These were just three new stock picks of Seth Klarman. But he’s buying many stocks this year.     Click to see 4 More Top New Stock Picks of Seth Klarman in 2024.

If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. Seth Klarman 2024 Portfolio: Top New Stock Picks was originally published on Insidermonkey.com



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For sale: A piece of California’s country music history

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The famed Buck Owens Crystal Palace, where music legends including Willie Nelson, Dwight Yoakam, Garth Brooks and a young Taylor Swift have played, is up for sale, with the foundation that runs the Bakersfield venue planning to list it for $7 million on Monday.

The nightclub, museum and steakhouse was owned by its namesake Buck Owens, the country music trailblazer who bucked the slick commercial melodies of Nashville for a distinctly West Coast twang. Owens opened the Crystal Palace in 1996, watching it become a premier venue for the biggest names in country music, including himself. Buck and the Buckaroos played there every Friday and Saturday night until his death in 2006.

Jim Shaw, a member of the Buckaroos and a director of the Buck Owens Private Foundation, said that after 28 years of running the famed venue, the Owens family plans to step back and find new owners amid a challenging business climate. The foundation said in a statement that “since Buck’s passing in 2006, we’ve tried to maintain the excellence that he expected, even as it became more and more difficult during these challenging times of increasing food and labor costs.”

The venue is not closing and scheduled events will continue as planned, Shaw said.

“It’s business as usual for now,” Shaw said. “Ideally, someone who wants to keep it exactly as it is will come forward.”

Owens’ youngest son, Johnny Owens, wrote on Facebook that the family’s hope “is that a buyer steps forward with a vision for the future and a reverence” for his father and the Bakersfield Sound.

The Crystal Palace, located on Buck Owens Boulevard, is a major tourism staple for Bakersfield. The 18,000-square-foot venue is next to the city’s downtown entrance.

“It’s the No. 1 tourist attraction in Bakersfield,” Shaw said. “There are people stepping forward and we are waiting to see what happens. I am getting a lot of phone calls. I’m anxious to see what happens.”



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2nd local radio host says they were given questions ahead of Biden interview

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A second local radio host on Saturday told ABC News that he was provided a list of questions in advance of his interview with President Joe Biden this week.

“Yes, I was given some questions for Biden,” Earl Ingram of CivicMedia told ABC News. Ingram, a prominent host of a Wisconsin radio station, interviewed Biden this week in the wake of his debate performance.

Ingram said he was given five questions and ended up asking four of them.

“I didn’t get a chance to ask him all the things I wanted to ask,” he said.

Ingram is the second interviewer who now says they were provided questions by Biden aides to ask the president this week. Earlier today, another local radio host who interviewed Biden this week told CNN she was given questions to ask Biden before the interview.

PHOTO: President Joe Biden speaks to supporters during a campaign rally at Sherman Middle School, on July 5, 2024, in Madison, Wisconsin.  (Scott Olson/Getty Images)PHOTO: President Joe Biden speaks to supporters during a campaign rally at Sherman Middle School, on July 5, 2024, in Madison, Wisconsin.  (Scott Olson/Getty Images)

PHOTO: President Joe Biden speaks to supporters during a campaign rally at Sherman Middle School, on July 5, 2024, in Madison, Wisconsin. (Scott Olson/Getty Images)

“We do not condition interviews on acceptance of these questions, and hosts are always free to ask the questions they think will best inform their listeners,” the Biden campaign told ABC News on Saturday.

Ingram told ABC he didn’t see anything necessarily wrong with the practice. “To think that I was gonna get an opportunity to ask any question to the President of the United States, I think, is a bit more than anybody should expect,” he said.

He continued that he was grateful for the opportunity to interview Biden at all.

“Certainly the fact that they gave me this opportunity … meant a lot to me,” Ingram said.

MORE: Wealthy Democratic donors sound alarm over Biden staying in race

On CNN earlier today, Andrea Lawful-Sanders, the host of WURD’s “The Source,” said Biden officials provided her with a list of eight questions ahead of their interview with Biden.

“The questions were sent to me for approval; I approved of them,” she said.

“I got several questions — eight of them,” she continued. “And the four that were chosen were the ones that I approved.”

Responding to Lawful-Sanders, Biden campaign spokesperson Lauren Hitt said in a statement that it’s not “uncommon” for interviewees to share topics they would prefer. She noted that Lawful-Sanders was “free” to ask any questions she saw fit. She also noted that it was the campaign who sent over the questions and not the White House as other reports claim.

Lawful-Sanders did note in her interview with CNN that she ultimately “approved” the questions provided.

“It’s not at all an uncommon practice for interviewees to share topics they would prefer. These questions were relevant to news of the day – the president was asked about this debate performance as well as what he’d delivered for black Americans,” the statement said.

“We do not condition interviews on acceptance of these questions, and hosts are always free to ask the questions they think will best inform their listeners. In addition to these interviews, the President also participated in a press gaggle yesterday as well as an interview with ABC. Americans have had several opportunities to see him unscripted since the debate.”

A source familiar with the Biden booking operation told ABC News that moving forward they will “refrain” from offering suggested questions to interviewers.

“While interview hosts have always been free to ask whatever questions they please, moving forward we will refrain from offering suggested questions.”

2nd local radio host says they were given questions ahead of Biden interview originally appeared on abcnews.go.com



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President George W. Bush turns 78 years old

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George W. Bush, born on July 6, 1946, in New Haven, Connecticut, was the 43rd President of the United States.

Bush was born to parents Barbara Bush and former President George H. W. Bush. He has five siblings; Jeb Bush, Marvin Bush, Neil Bush, Dorothy Bush Koch and Pauline Robinson Bush. Pauline was diagnosed with leukemia and passed away at age three.

He was formerly the Republican Governor of Texas from 1995 to 2000.

WHY FORMER PRESIDENT GEORGE W. BUSH IS WINNING … THE POST-PRESIDENCY

Bush was first elected to the White House in November 2000, and officially began his first term as president in January 2001, after he defeated Democrat Al Gore during the presidential election. Bush was reelected to his second term as the incumbent in November 2004, when he prevailed over Democrat John Kerry, and led the United States until January 2009 before handing over his torch to former President Barack Obama.

Bush married Laura Bush on November 5, 1977, the day after her 31st birthday, in her hometown of Midland, Texas. The couple were engaged in September 1977, and married less than two months later in a Methodist church. Bush and Laura met at a barbecue, and he took her to play mini-golf on their first date. 

The Bush’s share twin daughters, Barbara Pierce Bush and Jenna Bush Hager, born on November 25, 1981. Today, the couple also share four grandchildren; Mila, Poppy, Hal and Cora.

GEORGE BUSH, FORMER FIRST LADY ISSUE STATEMENT ON AFGHANISTAN WITH MESSAGE TO US TROOPS, VETERANS

During his presidency, Bush cared for his English springer spaniel, Spot Fetcher, who accompanied him to meetings in the Oval Office and on adventures throughout the White House. The dog was born to his parent’s dog, Millie.

On September 11, 2001, less than one year into Bush’s presidency, the Twin Towers in New York City were attacked by terrorists when airplanes hit both buildings, causing a collapse and thousands of lives lost. At the time, Bush was reading to elementary-aged children at a school in Sarasota, Florida. He was calmly and quietly advised of the attacks and quickly returned to Washington, where he was briefed alongside Vice President Dick Cheney.

Bush was regarded highly for his poise while learning of the attacks and for his demonstration of patriotism and leadership in the uncertain days and weeks following the hijackings of multiple planes on the day that shook America to her core.

SADDAM CAPTURED ‘LIKE A RAT’ IN RAID

On December 30, 2003, during Bush’s first term as POTUS, Saddam Hussein, the Iraqi leader and executor of the 9/11 attacks on the U.S., was captured by the American military

In the early morning of December 30, 2006, during Bush’s presidency, Hussein was hanged and executed for his crimes against humanity. Americans across the nation celebrated the death of Hussein and applauded Bush for promising the country he would take him out and following through.

While Bush was regarded for his dealings with the terrorist attacks, the signing of No Child Left Behind Act and the Patriot Act and the creation of the United States Department of Homeland Security, many Americans were unhappy with the sanctions of interrogation techniques, the war in Iraq and taxes while he was president.

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