Kate George, Editor

About the Author Kate George, Editor

Invest like Seth Klarman: Keryx Biopharmaceuticals (KERX), Micron Technology, Inc. (MU), Cheniere Energy, Inc. (LNG)

American billionaire Seth Klarman is the founder of the Baupost Group, the world’s 11th largest hedge fund. Klarman’s portfolio is valued at $6 billion. In the last three years, his portfolio has achieved an annualized return of 7.71%. Here are some of his hedge fund’s recent transactions:

Seth Klarman stats

In the most recent quarter, Klarman added Keryx Biopharmaceuticals (NASDAQ:KERX) to his portfolio, increasing his stake in Keryx by 15.24%. He holds $89.5 million worth of shares, comprising about 1.5% of his entire holdings. The drug developer, which focuses on the treatment of renal disease, recently announced the official approval of its drug Fexeric by the European commission. Fexeric is useful for controlling the levels of serum phosphorous in patients with chronic kidney disease. As per TipRanks, out of 8 analysts who have recently rated the stock, 3 have rated it as a Buy and 4 have given it a Hold rating. Only 1 analyst has given a Sell rating to Keryx. The average consensus price target for the stock is $9.50, an upside of nearly 156% from current levels.

Klarman did not change his holdings in Micron Technology, Inc. (NASDAQ:MU); however, the stock still remains 5.23% of his portfolio with his shares valued at $359 million. On October 1st, Micron announced its financial results for the fourth fiscal quarter. Revenues stood at $3.6 billion, slightly higher than analyst estimates of $3.56 billion. EPS stood at $0.37, significantly higher than consensus estimates of $0.33. As per TipRanks, out of 24 analysts who have rated Micron in the last three months, an overwhelming 20 have rated it as a Buy, while only 4 have rated the stock as Hold; none of the analysts have given a Sell rating to Micron. The average consensus price target the stock is $22.8, a 43.31% upside from current levels.

Klarman also added Cheniere Energy, Inc. (NYSEMKT:LNG) to his portfolio in the most recent quarter. With this addition, LNG has become the largest portion of Klarman’s portfolio at 13.19% of his total holdings. The energy company is heading towards exporting bulk amount of LNG (liquefied natural gas) from US via the sea, with exports expected to begin by the end of this year. The company was also in the news recently after activist investor Carl Icahn increased his stake in Cheniere to 11.43%, as revealed on September 29th. Based on TipRanks’ statistics, all three analysts who have rated the stock in the last three months have given it a Buy rating, in line with the views of Klarman. The consensus price target for Cheniere is $87.33; a 61% upside from current levels.



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