A reader asks if there is a way to monitor non-equity positions for Seth Klarman's Baupost Group. The short answer is no, I know of no way to track non-equity holdings for any money manager unless they disclose that information voluntarily via a report or letter. As mentioned on this blog last week, Klarman doesn't think stocks are cheap and is holding roughly 30% cash, according to notes coming out of his annual meeting (premium subscribers got a more in-depth breakdown of Klarman's comments).

This serves as a reminder that investors should regard these 13F-HR filings carefully as they offer only an incomplete picture into a money manager's thoughts.

Horizon Lines, Inc. (HRZ)

Q3 2009 Earnings Call Transcript

October 23, 2009 11:00 am ET

Horizon Lines, Inc. (HRZ)

Q3 2009 Earnings Call Transcript

October 23, 2009 11:00 am ET

Seth Klarman's hedge fund Baupost Group has sold shares of Facet Biotech (FACT) as detailed in recent SEC filings: a Form 4 and an amended 13D. On September 4th, 2009 Klarman sold 867,532 shares with the bulk of those orders going through at prices of $15.434 and $15.393. The amended 13D now shows Baupost Group (and related entities) owning a 14.2% stake in FACT with 3,506,875 shares remaining. FACT of course was recently subject to a buyout bid from Biogen Idec (BIIB) whereby they would acquire all FACT shares for $14.50 a share in cash. Shares of FACT were trading around $8.79 before the bid and they now trade at around $15.95, currently at a premium to BIIB's offer. On Tuesday, the Facet Biotech Board of Directors came out and deemed Biogen's offer "inadequate." Then on Wednesday, Biogen reiterated their proposal to acquire all the shares at $14.50. Shares of FACT are up 66% year to date. We'll continue to watch these developments with interest as this all comes long after we've covered all the movements relating to Baupost's stake in FACT.

Secondly, Baupost Group filed an amended 13G on Horizon Lines (HRZ) where they disclosed they no longer hold a position. They have completely sold out of the 2,962,029 shares they previously owned as last reported on June 30th. So, they've liquidated this stake sometime over the past 3 months. Shares of HRZ are up over 93% for the year. While shares may be up big this year, this is a losing position overall for Baupost. SEC filings show them building a position of 5 million shares over time between prices of $10-33 per share. They sold some shares between $9-13, but the rest of their sale comes now at a share price of just over $6. This definitely goes down as one of Baupost's misses and shows that even the greatest of investors make mistakes and are indeed human. For all other portfolio changes, you can view Baupost Group's portfolio here.