Baupost’s Klarman Adds Shares of Microsoft, BP to His Hedge Fund

Baupost Group LLC, the Boston-based hedge fund run by Seth Klarman, bought shares of Microsoft Corp. (MSFT) and BP Plc (BP/) in the second quarter, according to a regulatory filing today.

Klarman acquired 12 million shares valued at $312 million of Redmond, Washington-based Microsoft. He bought 5.5 million shares valued at $244 million of London-based BP.

Microsoft shares have declined 10 percent in 2011. BP shares are down 9.1 percent. Last year a blowout of BP’s Macondo well in the Gulf of Mexico killed 11 workers and injured 17.

Baupost owned $2.4 billion in stock at the end of the second quarter, up from $1.8 billion as of March 31, according to regulatory filings.

Baupost returned about 19 percent a year from 1983 through 2009 and almost 14 percent in 2010, data provided by the firm show. In February 2008, when Baupost accepted new investors after being closed for eight years, Klarman bought distressed corporate and mortgage debt.

To contact the reporter on this story: Charles Stein in Boston at cstein4@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net