Klarman’s Baupost Takes $595 Million Stake in Chipmaker Micron

Baupost Group LLC, the Boston-based hedge-fund firm run by Seth Klarman, took a $595 million stake in Micron (MU) Technology Inc. after the shares surged 57 percent in the first quarter.

Baupost purchased 41.5 million shares of Boise, Idaho-based Micron during the three months ended in June, making it the firm’s fourth-biggest stock investment by market value, according to a filing today with the U.S. Securities and Exchange Commission.

Micron last month completed a $2 billion purchase of Elpida Memory Inc. as it seeks to deliver sustainable profits in the volatile market for memory chips used in personal computers and mobile devices. Micron has reported a net loss in five out of its last 10 fiscal years.

Shares of Micron have jumped 136 percent this year, valuing the company at $15.5 billion. Baupost is now the firm’s fifth-biggest shareholder, according to data compiled by Bloomberg.

Baupost’s biggest stock holding at $786 million is Carlsbad, California-based ViaSat Inc. (VSAT), a position the firm didn’t add to in the second quarter, according to today’s filing. Baupost added 1.5 million American Depository Receipts of London-based BP Plc (BP/) for a stake valued at $776 million and almost 3 million shares of Theravance Inc. (THRX) for a holding worth $637 million.

Money managers who oversee more than $100 million in equities must file a Form 13F within 45 days of each quarter’s end to list their U.S.-traded stocks, options and convertible bonds. The filings don’t show non-U.S. securities or how much cash the firms hold.

-- With assistance from Ian King in San Francisco. Editors: Sree Vidya Bhaktavatsalam, Edward Evans

To contact the reporter on this story: Jesse Westbrook in London at jwestbrook1@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net

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