Baupost Took $461 Million Allergan Stake Before Deal Fell Apart

  • Also boosted holdings of EMC ahead of acquisition by Dell
  • EMC now the biggest U.S. stock positiion in the hedge fund

Seth Klarman’s Baupost Group took a new position last quarter in Allergan Plc, before the drugmaker’s $160 billion merger with Pfizer Inc. was terminated last month. 

Klarman bought 1.72 million shares of Allergan, which had a value of $461 million at the end of the first quarter, according to a regulatory filing today. Shares of the drugmaker have dropped 17 percent since then as the U.S. government proposed regulations to crack down on corporate inversions, ending the takeover.

Klarman also added to his position in EMC Corp., a maker of computer storage equipment which is in the process of being acquired by Dell Inc. With a value of $1.4 billion at the end of the quarter, EMC was Baupost’s largest stock position.

Money managers who oversee more than $100 million in equities in the U.S. must file a Form 13F within 45 days of each quarter’s end to list those stocks as well as options and convertible bonds. The filings don’t show non U.S. securities, holdings that aren’t publicly traded, or cash.

Klarman, who is based in Boston, is a bargain hunter who wrote the preface to the sixth edition of “Security Analysis,” a landmark 1934 book by Benjamin Graham and David Dodd on value investing.

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