Seth Klarman is an American billionaire and hedge fund manager. Klarman manages Baupost Group, a Boston-based fund whose portfolio has a net worth of over $8.75 billion, as of the end of the second quarter. Baupost returned 9% last year. In this article we will take a look at Seth Klarman’s favorite tech stocks by examining the holdings of his hedge fund, as of the end of the second quarter.
ViaSat, Inc. (NASDAQ:VSAT)
According to the latest 13F filings, The Baupost Group owns about 13.15 million shares of ViaSat, as of the end of the second quarter. The net worth of these shares is $871.069 million. ViaSat is a communications company which provides high-speed satellite broadband services for military and civil contractors.
The company recently announced second quarter results which fell short of expectations. ViaSat also announced that JetBlue will install ViaSat’s in-flight internet system in its aircrafts beginning next year. Government Systems segment’s revenue in the quarter increased by 6.7% year over year. ViaSat’s tactical data-link products and networking solutions are getting traction in the government sector.
Qorvo Inc (NASDAQ:QRVO)
Seth Klarman increased his hold on Qorvo by 25% in the second quarter, buying 1.814 million new shares of the company. The net worth of Baupost’s stake in Qorvo exceeds $569.88 million. Qorvo is a North Carolina-based company that makes radio frequency (RF) solutions, defense and aerospace applications.
The stock recently fell after the company gave a bleak guidance for the December quarter. Several investment firms downgraded the stock following the guidance, including Craig Hallum and Northland Capital. Apple is one of the biggest customers of Qorvo. The company earns about 35% of total revenue from Apple. The weak guidance was also due to falling demand from Apple.
Dell Technologies Inc (NYSE:DVMT)
Seth Klarman is bullish on Dell, as his hedge fund owns 5.65 million shares of the company, with a total worth of about $569.88 million. Dell has extensive exposure to Cloud and Virtual computing markets. The company announced back in 2015 to acquire EMC for $67 billion. It was the biggest-ever tech acquisition in the history.
Dell’s main intention was to evolve the company into the latest computing areas, away from the slowing legacy business. Dell currently has three business segments: Client Solutions Group, Infrastructure Solutions Group and VMware. Analysts think that Dell’s VMware segment has a huge potential. Its vCloud Air Network, has over 4,300 cloud customers.
Together with the other tech stocks mentioned, Dell is a strong buy with the promise of significant future growth.
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