Renowned value investor Seth Klarman‘s Baupost Group LLC expanded its positions in Alphabet Inc. GOOG GOOGL and Dollar General Corp. DG during the second quarter of 2025, according to the firm’s latest 13F filing with the Securities and Exchange Commission.
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Major Portfolio Moves Signal Confidence
The Boston-based hedge fund, managing $4.13 billion in assets as of June 30, according to 13F, increased its Alphabet stake by 556,000 shares—a 27% jump to 2.63 million shares. The position’s value surged 44% to $467.2 million, making it Baupost’s largest holding.
Dollar General saw an even more substantial boost, with Baupost adding 562,000 shares for a 27% increase. The retailer’s position value skyrocketed 65% to $305 million, reflecting both share accumulation and strong stock performance.
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New Positions and Strategic Additions
Klarman initiated three new positions during the second quarter of 2025. Fiserv Inc. FISV emerged as a significant addition with 895,000 shares valued at $154.3 million. The firm also established positions in Amcor PLC AMCR with 5.5 million shares worth $50.5 million and PagSeguro Digital Ltd. PAGS with 2.5 million shares valued at $24.1 million.
Portfolio Concentrates Despite Diversification
| Company | Q1 2025 Shares | Q2 2025 Shares | Change (%) | Q2 2025 Value ($M) |
|---|---|---|---|---|
| Alphabet | 2.08M | 2.63M | +27% | $467.2 |
| Wesco Intl | 2.01M | 2.21M | +10% | $408.8 |
| Willis Towers Watson | 1.53M | 1.31M | -14% | $402.8 |
| CRH PLC | 2.69M | 3.83M | +42% | $351.2 |
| Dollar General | 2.10M | 2.67M | +27% | $305.0 |
Value Investing Philosophy Drives Decisions
The 71-year-old Klarman, author of “Margin of Safety,” follows Warren Buffett‘s concentrated investment approach. In previous interviews, Klarman emphasized Buffett’s “punch card” philosophy—making each investment count as if limited to 20 lifetime picks.
“Everybody appreciates a bargain,” Klarman said in a 2011 interview, explaining his contrarian approach. “When the market’s going down, most people get scared and overreact.”
Baupost eliminated several positions, including Solventum Corp., Clarivate PLC and SomniGroup International, while maintaining its concentrated portfolio of 23 holdings—unchanged from the previous quarter despite the portfolio’s 18% value increase to $4.13 billion.
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