Seth Klarman 13F Q2 2026: What He Bought and Sold

Seth Klarman's Baupost Group added to three core holdings in the second quarter of 2026 while trimming or exiting several positions. The filing, covering $5.4 billion across 23 holdings as of June 30, 2026, shows a portfolio that remained heavily concentrated in technology and consumer stocks. Amazon received the largest addition, up 20 percent. Google rose 16 percent. Klarman also made a new bet on CME Group worth $136.7 million.

!Baupost's Largest Buys $ millions. Amazon dominated new capital deployed, followed by Google and General Parts Company.

The portfolio's top 10 holdings now account for 74.9 percent of the book, a sign of conviction in a tighter group of ideas. Amazon alone represents 16.5 percent of assets under management, by far the single largest position. This concentration has real consequences for returns, which is why every trade into or out of these mega-positions matters.

What did Seth Klarman buy this quarter?

Klarman's buying preference was clear: add to existing winners and make selective new bets on financial infrastructure. The Amazon addition of $892.3 million represents genuine confidence in a position already sized at more than one-sixth of the portfolio. The move came even as SteadyShares rates Amazon at 68 out of 100, suggesting Klarman sees value at current levels despite the stock trading 25 percent below our fair value estimate.

Google received $484.7 million in new capital, pushing the position up 16 percent. At 8.9 percent of the portfolio, Google is Klarman's fourth-largest holding. SteadyShares rates Google at 85 out of 100, our highest rating on Baupost's entire book, and the stock trades 115 percent below our fair value, indicating substantial upside potential from current prices.

The General Parts Company (GPC) addition stands out for its size relative to the position: Klarman added 89 percent, deploying $332.3 million. GPC now represents 6.1 percent of the portfolio. This aggressive expansion into a stock rated 24 out of 100 and trading 63 percent below fair value suggests Klarman either saw a dislocation in valuation or a significant operational inflection point.

The CME Group position is entirely new. At $136.7 million, it enters the portfolio as a mid-sized bet. This marks a fresh conviction on derivatives trading and clearing infrastructure, a sector Baupost has not emphasized in prior filings.

GDS Holdings received a 24 percent increase, worth $113.2 million, signaling continued confidence in the data center operator.

What positions did Klarman trim this quarter?

The sell side was equally deliberate. Klarman trimmed five positions and exited two entirely, signaling a shift in conviction across industrials, consumer, and healthcare.

Quiznos (QSR), a consumer cyclical holding that represents 9.0 percent of the portfolio, was cut by 16 percent. The position now stands at $489.6 million. Despite SteadyShares rating QSR at 67 out of 100 with 63 percent upside to fair value, Klarman opted to reduce exposure.

Union Pacific, the railroad, took a more aggressive trim of 23 percent, falling from $418.4 million to $322.4 million. At 6.0 percent of the portfolio, it remains a core holding, but the reduction signals caution on rail economics despite SteadyShares' 57 out of 100 rating and a 26 percent discount to fair value.

Waste Connections (WCC) saw a 54 percent reduction, by far the most severe cut. The position plummeted from $497.8 million to $229.0 million, effectively halving Baupost's bet on the waste and environmental services operator. SteadyShares rates WCC at 58 out of 100, and it trades 45 percent below our fair value, suggesting the trim was not driven by valuation collapse but rather by conviction change.

Teledyne Technologies (TFX) was trimmed 12 percent to $178.6 million. Expeditors (EXP) fell 41 percent to $119.4 million, indicating a larger loss of conviction in freight forwarding and logistics. Lineage (COLD), the cold storage real estate investment trust, dropped 12 percent to $107.4 million.

Which stocks did Klarman exit completely?

Two full exits mark a meaningful shift. Willis Towers Watson (WTWS), which was worth $259.6 million last quarter, is gone. The insurance and benefits consulting firm was a substantial 4.8 percent position just one quarter ago. The complete exit suggests either a change in the investment thesis or a decision to redeploy capital elsewhere at better returns.

PCVX, a smaller $46.5 million position, was also fully exited. These decisions, made with Klarman's track record of disciplined capital allocation, warrant attention even if the dollar amounts are smaller.

How is the portfolio weighted by sector now?

Baupost's sector allocation reflects heavy tilts toward consumer and consumer cyclical stocks. Consumer represents 22.6 percent of assets, while Consumer Cyclical adds another 9.0 percent. Healthcare accounts for 12.4 percent, and Industrials for 10.2 percent. Communication Services is 8.9 percent. A significant 13.6 percent remains unclassified, likely reflecting smaller or harder-to-categorize positions.

The unclassified bucket warrants scrutiny. It likely includes positions in financial services (like CME, Aon, and Visa) that defy neat sector binning. This is a sophisticated, hybrid portfolio rather than a sector-driven one.

What does the full top 10 look like?

Beyond Amazon and Google, Klarman's heaviest concentration falls on a mix of stalwarts and contrarian bets. Quiznos at 9.0 percent of the portfolio is a consumer cyclical play on quick service restaurants. Elevance Health (ELV), a health insurance operator, is 9.1 percent despite a SteadyShares rating of only 31 out of 100 and trading 49 percent below fair value. This suggests Klarman either disagrees with our valuation or sees hidden value in the underlying business.

Ferguson (FERG), the plumbing and HVAC distributor, is 6.4 percent. Union Pacific is 6.0 percent. Genuine Parts Company (GPC), now a 6.1 percent position after the aggressive add, is a distribution and parts supplier. Visa (V), the payments network, is 4.4 percent. Waste Connections is 4.2 percent. Aon PLC, the insurance broker, rounds out the top 10 at 4.2 percent.

The concentration in infrastructure, insurance, and business services suggests Klarman is betting on resilience through economic uncertainty, even if some of these positions trade at wide discounts to where SteadyShares values them.

The bottom line

Klarman is doubling down on technology giants while trimming or exiting industrial and logistics plays. The portfolio is getting pickier: 74.9 percent now lives in the top 10, suggesting he has fewer ideas but more conviction in them. This is a portfolio rotating toward defensibility and away from cyclicality.

You can track all of Baupost's positions in real time on Klarman's SteadyShares guru profile.

This is educational information, not financial advice.