Hedge fund titan Seth Klarman boosted bets on 3 healthcare stocks and dumped tech giants in the 2nd quarter

• Billionaire hedge fund manager Seth Klarman slimmed some of his biggest tech holdings and grew positions in healthcare stocks during the second quarter, new SEC filings show.
• Baupost Group slashed its Facebook and Alphabet stakes by 57% and 29%, respectively.
• Klarman shifted considerable cash into healthcare stocks. A new position in HCA Holdings marked Baupost's biggest buy of the quarter, and the manager boosted bets on Atara Biotherapeutics and Translate Bio.
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Seth Klarman's Baupost Group is relying less on tech giants and more on biotech stocks posting healthy gains in the second half of 2020.

The hedge fund saw the value of its long stock portfolio swell 18% through the second quarter as the stock market rocketed out of its March slump, according to a Securities and Exchange Commission filing disclosed Friday. Klarman maintained large stakes in eBay, Fox Corp, and Liberty Global, but adjusted other elements of his portfolio as investors increasingly crowded cash into popular mega-caps.

The manager slashed his bet on Facebook by 57%, dumping more than 1.1 million shares as the social media giant surged through the quarter. Klarman sold nearly 86,000 shares of Alphabet and cut his position in the Google-parent by roughly 29%.

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The fund also reduced positions in energy companies, including completely selling its stakes in Cheniere Energy and Energy Transfer Equity.

In place of the slimmed-down tech and energy bets, Klarman shifted some cash into healthcare stocks. Two of Baupost's three biggest second-quarter buys were in the sector. Both the fund's biggest new position and biggest increase involved healthcare stocks, as well.

Here are the billionaire fund manager's three growing healthcare bets:

1. Atara Biotherapeutics
   • Ticker: ATRA
   • Baupost portfolio value: $145 million
   • Change in stake: 19.4% increase
2. HCA Holdings
   • Ticker: HCA
   • Baupost portfolio value: $97 million
   • Change in stake: New position
3. Translate Bio
   • Ticker: TBIO
   • Baupost portfolio value: $323 million
   • Change in stake: 2.9% increase

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