New York (HedgeCoVest.Com) – Hedge fund manager Seth Klarman pointed out in a year-end letter to investors in the Baupost Group’s fund that he wasn’t seeing many bargains in the stock market with the exception of the energy sector. With that in mind, Klarman has built up quite a stake within the sector and according to a recent article on TheStreet.com, the sector now represents nearly 40% of the portfolio.
Among the holdings in the portfolio, the four stocks listed below represent 37.5% of the portfolio with the stocks listed and the percentage of the portfolio listed as well.
• Cheniere Energy (Amex: LNG) 18.1%
• Pioneer Natural Resources (NYSE: PXD) 8.8%
• Antero Resources (NYSE: AR) 5.6%
• PBF Energy (NYSE: PBF) 5.0%
The most interesting name on the list might be Pioneer Resources as that particular company came under fire recently from fellow hedge fund manager David Einhorn. At last month’s Sohn Investment Conference, Einhorn referred to Pioneer as the ‘mother fracker’.
It will be interesting to see which manager wins out in this game of poker, Klarman or Einhorn. Einhorn is well known for his shorting prowess while Klarman is known for finding long-term values.