Seth Klarman - Baupost Group Investment Strategy (Sep 30, 2025)
As of Sep 30, 2025, the Baupost Group portfolio managed by Seth Klarman demonstrates a sophisticated investment approach with 8 positions and an average holding period of 612 quarters. The strategy focuses on Communication Services, Consumer Cyclical, Energy, Financial Services, Technology sectors with a typical position size of 15.1% of the portfolio.
The portfolio's risk management approach includes a maximum position size of 15.11% and sector diversification of 5%, exemplified by the case study of RESTAURANT BRANDS INTL INC (QSR). This strategic framework provides insights into Seth Klarman's investment philosophy, risk management practices, and long-term value creation approach.
Investment Strategy Metrics
Key metrics revealing investment style, risk management, and performance characteristics
| Metric | Value | Category | Description |
|---|---|---|---|
| Holding Period | 1.7 years | Style | Average duration positions are maintained |
| Position Count | 8 | Style | Number of active positions in portfolio |
| Position Size | 15.1% | Risk | Typical allocation per position |
| Win Rate | 44.0% | Performance | Percentage of profitable positions |
| Average Return | 1.4% | Performance | Mean return across positions |
| Sharpe Ratio | 0.08 | Performance | Return per unit of risk taken |
Investment Case Study: RESTAURANT BRANDS INTL INC (QSR)
9/30/2024 - 12/1/2025
Performance Metrics
Total Return: 9,304.46%
Holding Period: 427 days
Max Position Size: $529,337.00
Position Weight: 6.10%
Key Events
Investment Thesis
Entry Context: Initial position established based on fundamental analysis
Sector Conditions: Favorable market conditions in the sector
- Market volatility
- Sector-specific risks
Key Learnings
- Position sizing is critical for portfolio management
- Important to monitor sector exposure