Klarman’s Baupost Buys EBay, Theravance Shares in Second Quarter

Baupost Group LLC, the Boston-based hedge-fund firm run by Seth Klarman, bought shares in EBay Inc. and Theravance Biopharma Inc. (TBPH) and sold its stake in BP Plc in the second quarter.

Baupost also added to its position in Cheniere Energy Inc. (LNG), which is now its fifth-largest holding, according to a regulatory filing today with the U.S. Securities and Exchange Commission.

Klarman, 57, is a bargain hunter who wrote the preface to the sixth edition of “Security Analysis,” a landmark 1934 book by Benjamin Graham on value investing. His firm oversaw about $27 billion at the start of this year.

Baupost in recent years has held a relatively small share of its money in stocks, preferring less liquid assets such as real estate and distressed debt. Investments in debt of Lehman Brothers Holdings Inc. represented 18 percent of Baupost’s net asset value as of Dec. 31, according to Klarman’s year-end letter to shareholders.

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.

To contact the reporter on this story: Devin Banerjee in New York at dbanerjee2@bloomberg.net

To contact the editors responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net Mary Romano, Josh Friedman

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