As of Q2 2025, Seth Klarman’s portfolio at Baupost Group showcases a remarkable transformation with aggressive moves into healthcare and fintech sectors. The legendary value investor made dramatic position changes, including a stunning 150% increase in Anthem and multiple new strategic acquisitions in financial technology. This quarter demonstrates Klarman’s most active positioning in recent memory, signaling major conviction shifts across healthcare, technology, and financial services.
1
GOOG
Alphabet Inc. Class C
Position Increased +27%
Portfolio %: 11.36%
Value: $467,243,000
Shares: 2,633,988
Change: +556,000 shares (+27%)
Alphabet ascends to become Baupost’s largest holding with a substantial 27% increase in share count. This continued aggressive accumulation in Google’s parent company represents Klarman’s highest conviction in big tech, likely driven by AI leadership, cloud growth, and attractive valuations. The move to top position signals this has become a core long-term holding.
2
WCC
Wesco International Inc.
Position Increased +10%
Portfolio %: 9.94%
Value: $408,848,000
Shares: 2,207,601
Change: +202,000 shares (+10%)
Wesco International maintains its position as a top holding with another 10% increase, reinforcing Klarman’s conviction in this industrial distributor. The continued accumulation suggests strong belief in infrastructure spending and electrical systems modernization trends, particularly with data center and renewable energy infrastructure driving demand.
3
WLTW
Willis Towers Watson PLC
Position Reduced -14%
Portfolio %: 9.79%
Value: $402,797,000
Shares: 1,314,184
Change: -211,483 shares (-14%)
Willis Towers Watson continues to see position reductions, falling from the top spot despite remaining a substantial holding. The ongoing trimming suggests either profit-taking after strong performance or capital reallocation to higher-conviction opportunities in technology and healthcare sectors.
4
CRH
CRH PLC
Position Increased +42%
Portfolio %: 8.54%
Value: $351,171,000
Shares: 3,825,395
Change: +1,131,000 shares (+42%)
CRH receives another massive 42% position increase, making it a clear top-four holding. This building materials giant continues to benefit from Klarman’s infrastructure thesis, with the substantial additions suggesting strong conviction in construction sector recovery and potential government infrastructure spending programs.
5
FIS
Fidelity National Information Services
Position Increased +9%
Portfolio %: 7.50%
Value: $308,520,000
Shares: 3,789,711
Change: +296,764 shares (+9%)
Fidelity National Information Services continues growing as a core fintech holding with an additional 9% increase. This financial technology infrastructure provider represents Klarman’s belief in essential payment processing and banking software services, particularly as digital transformation accelerates across financial institutions.
6
DG
Dollar General Corp.
Position Increased +27%
Portfolio %: 7.41%
Value: $305,037,000
Shares: 2,666,876
Change: +562,000 shares (+27%)
Dollar General receives a substantial 27% increase, reflecting Klarman’s conviction in defensive retail businesses. This discount retailer offers recession-resistant characteristics and benefits from value-conscious consumer trends, making it an attractive hedge against potential economic uncertainty while maintaining growth prospects.
7
QSR
Restaurant Brands International Inc.
Position Increased +4%
Portfolio %: 6.52%
Value: $268,445,000
Shares: 4,049,562
Change: +163,000 shares (+4%)
Restaurant Brands International sees a modest 4% increase, maintaining its position as a significant holding. The parent company of Burger King, Tim Hortons, and Popeyes continues to appeal to Klarman through its franchise model and predictable cash flows, though the smaller increase suggests other opportunities are taking priority.
8
LBTYK
Liberty Global Ltd. Class C
Shares Unchanged
Portfolio %: 6.18%
Value: $254,222,000
Shares: 24,657,803
Change: No change in shares
Liberty Global remains unchanged after significant reductions in previous quarters, suggesting Klarman has reached a stable position size in this European telecommunications company. The steady holding indicates continued long-term value despite competitive pressures in the telecom sector.
9
FERG
Ferguson Enterprises Inc.
Shares Unchanged
Portfolio %: 5.99%
Value: $246,493,000
Shares: 1,132,000
Change: No change in shares
Ferguson Enterprises maintains its position unchanged, continuing as a core infrastructure play. This leading distributor of plumbing and HVAC products complements other construction-related holdings, providing stable exposure to renovation and new construction markets without requiring additional capital allocation.
10
ANTM
Anthem Inc.
Massive Increase +150%
Portfolio %: 5.82%
Value: $239,599,000
Shares: 616,000
Change: +370,000 shares (+150%)
Anthem represents the quarter’s most dramatic move with an extraordinary 150% position increase, vaulting into the top 10 holdings. This massive healthcare bet signals Klarman’s strong conviction in managed care companies, likely driven by aging demographics, Medicare Advantage growth opportunities, and attractive valuations in the healthcare sector.
N
FISV
Fiserv Inc.
New Position
Portfolio %: 3.75%
Value: $154,307,000
Shares: 895,000
Fiserv enters as a substantial new fintech position, immediately representing 3.75% of the portfolio. This major payment processing and financial technology company expands Klarman’s exposure to digital financial infrastructure, complementing the existing FIS holding and demonstrating strong conviction in fintech sector consolidation and growth opportunities.
N
AMCR
Amcor PLC
New Position
Portfolio %: 1.23%
Value: $50,545,000
Shares: 5,500,000
Amcor represents a new position in global packaging solutions, adding defensive characteristics through essential packaging services across food, beverage, pharmaceutical, and personal care markets. This addition suggests Klarman sees value in companies providing necessary services regardless of economic conditions.
1
Healthcare Sector Breakthrough
The most dramatic strategic shift in Q2 2025 is Baupost’s aggressive move into healthcare with Anthem’s extraordinary 150% position increase. This massive bet on managed care signals Klarman’s conviction in healthcare value propositions, likely driven by demographic trends, Medicare Advantage growth, and attractive sector valuations. The move represents one of the largest single-quarter position increases in Baupost’s recent history, indicating this has become a major long-term thesis for the fund.
2
Fintech Infrastructure Expansion
Baupost significantly expanded its financial technology exposure with the addition of Fiserv as a major new 3.75% position, complementing the continued growth in Fidelity National Information Services (+9%). The addition of Brazilian fintech PagSeguro Digital further demonstrates global fintech conviction. This cluster suggests Klarman sees compelling value in financial infrastructure companies that provide essential payment processing and banking technology services to institutions and merchants worldwide.
3
Technology Leadership Consolidation
Alphabet’s continued 27% increase elevates it to become Baupost’s largest holding for the first time, representing 11.36% of the portfolio. This sustained accumulation over multiple quarters demonstrates Klarman’s highest conviction in big tech, likely driven by AI leadership, cloud computing growth, and what he perceives as attractive valuations relative to long-term competitive advantages. The move to the top position signals this has become a cornerstone holding for the value investing legend.
4
Infrastructure & Materials Momentum
The infrastructure thesis continues strengthening with CRH’s massive 42% increase and Wesco International’s additional 10% growth, while surprisingly Eagle Materials was reduced by 26%. This selective approach within construction materials suggests Klarman is focusing on the highest-quality infrastructure plays with the strongest competitive positions and global exposure, rather than making broad sector bets. The continued heavy weighting in construction-related businesses indicates sustained conviction in infrastructure spending cycles.
5
Defensive Consumer Reinforcement
Dollar General’s substantial 27% increase alongside steady positions in Restaurant Brands International demonstrates continued emphasis on defensive consumer businesses. The addition of Amcor in packaging further reinforces this theme. These companies offer recession-resistant characteristics through value-oriented retail, franchise models, and essential packaging services, suggesting Klarman is positioning for potential economic uncertainty while maintaining exposure to stable consumer spending patterns.
Seth Klarman’s Q2 2025 portfolio represents one of his most active quarters in recent memory, marked by bold strategic moves and sector rotation that demonstrates the legendary investor’s adaptability within his value framework. The extraordinary 150% increase in Anthem signals a major healthcare conviction, while Alphabet’s ascension to the top holding position after another 27% increase shows sustained belief in big tech leadership at attractive valuations.
The addition of Fiserv as a substantial new fintech position, combined with continued expansion in FIS and new international exposure through PagSeguro Digital, reveals a comprehensive financial technology infrastructure thesis. Meanwhile, the ongoing aggressive accumulation in construction materials through CRH (+42%) and Wesco International (+10%), alongside selective trimming in Eagle Materials, shows nuanced sector positioning rather than broad infrastructure bets.
Most notably, this quarter showcases Klarman’s willingness to make significant capital allocation decisions quickly when he identifies compelling value opportunities. The dramatic healthcare entry, fintech expansion, and technology leadership consolidation suggest Baupost is positioning for secular growth trends in aging demographics, digital financial services, and AI-driven competitive advantages. This active portfolio management within a value discipline demonstrates why Klarman remains one of the most respected long-term investors, balancing defensive characteristics with growth opportunities across multiple high-conviction themes.
