As of Q1 2025, Seth Klarman’s portfolio at Baupost Group demonstrates notable shifts from the previous quarter, with significant position increases in technology and construction materials sectors. The legendary value investor shows continued conviction in business services while selectively managing exposure to telecommunications and adding a major new fintech position.
1
WLTW
Willis Towers Watson PLC
Position Reduced -17%
Value:
$515,599,000
Shares:
1,525,667
Change:
-311,081 shares (-17%)
Despite reducing the position by 17%, Willis Towers Watson remains Baupost’s largest holding. The global advisory and solutions company specializing in risk management, insurance brokerage, and human capital consulting continues to be a core conviction for Klarman, though the significant reduction may indicate some profit-taking or valuation concerns.
2
GOOG
Alphabet Inc.
Position Increased +45%
Value:
$324,644,000
Shares:
2,077,988
Change:
+652,000 shares (+45%)
Baupost significantly increased its Alphabet position by 45%, making it the second-largest holding. This substantial addition suggests Klarman sees compelling value in Google’s parent company, likely due to its dominant market position in digital advertising, cloud computing growth potential, and leadership in AI development.
3
WCC
Wesco International Inc.
Position Increased +40%
Value:
$311,470,000
Shares:
2,005,601
Change:
+569,930 shares (+40%)
Wesco International saw a dramatic 40% position increase, elevating it to Baupost’s third-largest holding. This industrial distributor of electrical, communications, and utility products appears to be a high-conviction bet on infrastructure spending and industrial modernization, reflecting Klarman’s value-oriented approach to essential business services.
4
LBTYK
Liberty Global Ltd. Class C
Position Reduced -37%
Value:
$295,154,000
Shares:
24,657,803
Change:
-14,796,040 shares (-37%)
Liberty Global saw the most significant reduction in Baupost’s portfolio with a 37% decrease in share count. While still a top holding, this substantial cut suggests potential concerns about the telecommunications company’s growth prospects or competitive position in the European markets where it primarily operates.
5
FIS
Fidelity National Information Services
New Position
Value:
$260,853,000
Shares:
3,492,947
Change:
New Position
Fidelity National Information Services represents a significant new position and immediately becomes a top-5 holding. This major fintech company provides technology solutions for financial institutions and merchants, including payment processing and banking software. The size of this new stake suggests high conviction in FIS’s value proposition in financial technology infrastructure.
6
QSR
Restaurant Brands International Inc.
Position Increased +34%
Value:
$259,000,000
Shares:
3,886,562
Change:
+984,862 shares (+34%)
Restaurant Brands International received a substantial 34% position increase, making it Baupost’s sixth-largest holding. The parent company of Burger King, Tim Hortons, and Popeyes offers franchise-based recurring revenue streams. This increase suggests Klarman sees value in consumer defensive businesses with strong brands and cash flow generation.
7
CRH
CRH PLC
Shares Increased +2%
Value:
$237,026,000
Shares:
2,694,395
Change:
+52,993 shares (+2%)
CRH, a global leader in building materials and products, saw a slight increase in share count despite a small decrease in position value due to price fluctuations. This continued commitment to CRH reinforces Klarman’s interest in infrastructure-related businesses with tangible assets and essential products for construction markets.
8
EXP
Eagle Materials Inc.
Position Increased +42%
Value:
$201,875,000
Shares:
909,633
Change:
+271,410 shares (+42%)
Eagle Materials received one of the largest percentage increases in Baupost’s portfolio at 42%. The company produces and distributes cement, gypsum wallboard, and other construction materials. This significant addition aligns with CRH and reinforces Klarman’s thesis on construction and infrastructure spending, possibly related to anticipated government initiatives.
9
DG
Dollar General Corp.
Shares Increased +2%
Value:
$185,082,000
Shares:
2,104,876
Change:
+44,076 shares (+2%)
Dollar General saw a modest increase in shares with a more substantial rise in position value. This discount retailer offers defensive characteristics in uncertain economic environments, catering to value-conscious consumers. The position increase suggests Klarman maintains conviction in the company’s business model and potential resilience during economic downturns.
10
FERG
Ferguson Enterprises Inc.
Shares Unchanged
Value:
$181,380,000
Shares:
1,132,000
Change:
No change in shares
Ferguson Enterprises, a leading distributor of plumbing and HVAC products, saw no change in share count with a slight decrease in position value. This stability suggests Klarman remains comfortable with the company’s position in construction supply chains, complementing other holdings in building materials and industrial distribution.
1
Shifting Technology Focus
The most notable shift in Baupost’s Q1 2025 portfolio is the significant increase in technology exposure. Alphabet saw a 45% position increase, becoming the second-largest holding, while Fidelity National Information Services entered as a major new position. This strategic pivot towards tech and fintech suggests Klarman is finding compelling value in digital infrastructure companies with strong competitive moats and recurring revenue models, while maintaining his value discipline rather than chasing speculative growth stocks.
2
Infrastructure & Construction Materials Emphasis
Baupost significantly increased stakes in industrial and construction-related businesses, with Wesco International (+40%) and Eagle Materials (+42%) receiving some of the largest position increases. Combined with continued holdings in CRH and Ferguson, this cluster suggests a high-conviction bet on infrastructure spending and construction activity. The timing aligns with potential government infrastructure initiatives and residential construction recovery, positioning the portfolio to benefit from physical asset investment cycles.
3
Major Telecommunications Reduction
The 37% reduction in Liberty Global stands out as the most significant position cut, suggesting a strategic decision to reduce exposure to the European telecommunications sector. This large decrease may reflect concerns about competitive pressures, regulatory challenges, or capital-intensive network upgrade requirements in the telecommunications industry. The position remains substantial but the reduction indicates a reallocation of capital to higher-conviction ideas elsewhere in the portfolio.
4
Consumer Defensive Enhancement
The substantial 34% increase in Restaurant Brands International alongside continued investment in Dollar General demonstrates Klarman’s selective approach to consumer businesses. These companies share characteristics valued by Baupost: strong brands, franchise-based or asset-light business models, and resilience during economic uncertainty. The increased allocation suggests positioning for potential economic softness while maintaining exposure to stable consumer spending patterns through value-oriented retail and quick-service restaurants.
Seth Klarman’s Q1 2025 portfolio demonstrates a dynamic approach to value investing, with significant position adjustments reflecting evolving market opportunities. The dramatic increase in Alphabet (+45%) and substantial new position in Fidelity National Information Services signals a strategic shift toward high-quality technology businesses with dominant market positions, while major increases in construction-related companies like Wesco International (+40%) and Eagle Materials (+42%) suggest conviction in infrastructure and building materials sectors.
The substantial reduction in Liberty Global (-37%) coupled with the decrease in Willis Towers Watson (-17%) indicates willingness to reduce even long-held positions when better opportunities emerge or thesis changes. Overall, Baupost’s Q1 modifications reveal Klarman’s active management approach within a value framework, reallocating capital from telecommunications toward technology and industrial sectors while maintaining significant positions in financial infrastructure and consumer defensive businesses. This balanced approach aims to capture value across multiple sectors while maintaining the margin of safety central to Klarman’s investment philosophy.
