Baupost's 12.7% Amazon Stake Highlights Seth Klarman's Concentrated Growth Strategy

Top Holdings Analysis

Baupost Group's portfolio, managed by Seth Klarman as of March 31, 2026, is characterized by significant concentrations in specific companies and sectors. The largest position by value is Amazon (AMZN), accounting for 12.7% of the portfolio with a total stock value of $649,543. This is followed by WESCO International (WCC) at 7.69% ($393,159) and Union Pacific (UNP) at 7.31% ($373,876).

Other substantial holdings include Ellevest (ELV) at 7.3% ($373,301), Alphabet (GOOG) at 6.62% ($338,819), Ferguson Enterprises (FERG) at 6.58% ($336,457), Willis Towers Watson (WTW) at 5.08% ($259,632), and Aon PLC (AON) at 4.85% ($248,218). The portfolio also includes Visa (V) at 4.14% ($211,978) and Teleflex (TFX) at 3.73% ($190,778).

Portfolio Concentration and Sector Focus

The portfolio exhibits notable concentration, with the Consumer Cyclical sector, represented by Amazon, holding the largest allocation at 12.7%. Industrials is another heavily weighted sector, encompassing WCC (7.69%), UNP (7.31%), FERG (6.58%), WTW (5.08%), and AON (4.85%). Collectively, these holdings in Industrials account for approximately 25.52% of the portfolio's value, highlighting a significant tilt towards this sector.

Financial Services is represented by two major holdings: AON (4.85%) and Visa (4.14). Healthcare is represented by Ellevest (7.3%) and Teleflex (3.73%). The Communication Services sector is represented by Alphabet (6.62%). The remaining sectors are less represented, and one holding (WTW) lacks a sector classification.

Recent Changes and Investment Thesis

Several holdings show significant changes from the prior period, reflecting the dynamic nature of Baupost's strategy. Amazon saw a substantial increase in shares (47.01% or ~997,363 shares), suggesting strong confidence in its long-term prospects. Alphabet (GOOG) also increased significantly by 8.64% in shares. Conversely, Willis Towers Watson experienced a sharp decline of 34.21% in shares, indicating a reversal of position or underperformance in the manager's view.

Notably, AON and Visa both increased by 100% in shares during the period, suggesting either a fresh start or a significant new investment aligned with Baupost's assessment of their business models or valuation at that time. Ferguson Enterprises also saw a substantial 26.86% increase in shares, pointing to a conviction in its growth potential or undervaluation. These changes underscore Baupost's active management style, willing to significantly increase positions in companies they favor and exit or reduce positions when their thesis no longer holds or they have achieved their target allocation.

The overall strategy appears to favor companies with strong competitive advantages, exposure to secular growth trends, and potentially attractive valuations. The concentration in both Consumer Cyclical (Amazon) and Industrials (WCC, UNP, FERG, WTW, AON) suggests a focus on businesses with durable franchises and pricing power, alongside exposure to global growth drivers. The inclusion of Financial Services (AON, Visa) and Healthcare (Ellevest) indicates diversification across different growth avenues and business models.