In the first quarter of 2021, Seth Klarman, co-founder of Baupost Group, continued to buy cheap stocks. His hedge fund had over $30 billion in assets under management at the end of last year, accounting for about 31% of the total holding. Klarman’s hedge fund took new stakes in 27 stocks and increased its holdings in seven others. Intel Corporation, eBay Inc, and Micron Technology, Inc. are among Klarman’s major holdings as of the first quarter. Klarman, 64, is generally considered among the biggest followers of value investing legends like Warren Buffett and Benjamin Graham. In a 2019 investor letter, he frankly admitted that his fund’s investing strategy that is focused on value opportunities lagged behind when compared to the broader market index. Seth Klarman is one of the top hedge fund managers in the world. Since November, value stocks have outperformed growth equities on the back of hopes for economic rebound and vaccination implementation. Despite weaker returns in 2020, he is confident in value stocks’ recovery. He always tries to keep a large quantity of cash on hand, especially when the market is volatile.
Insider Monkey examines the 10 best defensive stocks to buy now according to billionaire Seth Klarman. Fidelity National Financial, Inc., a provider of insurance products, is one of the finest defensive stocks due to its low price-to-earnings ratio. Despite a 45 percent share price increase in recent months, the company’s stock is still trading at a considerable discount. Due to its minimal share price volatility, Verint Systems Inc. appears to be a defensive stock. It is a strong defensive stock pick because of its low beta of 0.82 and price to earnings ratio of 20. Since the second quarter of last year, Baupost Group has owned a position in Verint. Veritiv Corporation is one of the top ten defensive stocks to purchase right now. Because of the company’s excellent earnings growth potential, its stock has risen about 200 percent this year. It was in the portfolios of 13 hedge funds at the end of March, unchanged from the previous quarter. According to Klarman’s Q1 portfolio, Healthpeak Properties, Inc. is one of the finest stocks to buy. At the end of March, the real estate investment trust was in 18 hedge fund portfolios, down from 22 in the previous quarter. According to Seth Klarman’s Q1 portfolio, Theravance Biopharma, Inc. is one of the top ten defensive companies to buy right now. To increase its cash resources, the corporation is now working on stock offering plans. For more details, click 10 Best Defensive Stocks to Buy Now.
