Seth Klarman Buys Oil Company and Semiconductor Company

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Feb 11, 2015
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Legendary value investor Seth Klarman (Trades, Portfolio) purchased two new stocks, Bellatrix Exploration Ltd. (BXE, Financial) and SunEdison Semiconductor Ltd. (SEMI, Financial), on Jan. 31, according to GuruFocus Real Time Picks.

Klarman’s $28.5 billion Baupost Group returned 8% last year, Bloomberg reported, its sixth consecutive year of gains. The value of Klarman’s stock portfolio totaled $5.7 billion at the end of the third quarter, with 27 positions.

Bellatrix Exploration Ltd. (BXE, Financial)

Klarman purchased 21,839,400 shares of Bellatrix Exploration, representing 11.4% of the company’s shares outstanding.

Bellatrix is an oil and gas company concentrated in Western Canada with a $533 million market cap. The company’s shares dived 34% year to date to close at $2.79 on Tuesday.

On Nov. 4 Bellatrix announced third quarter earnings of $44.9 million, a 52% increase from $29.5 million in the same quarter a year ago. Revenue for the third quarter was $137.4 million, a 101% increase from $68.3 million a year ago. The company also reported record production volume, increased by 73% from a year ago.

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Bellatrix has a P/E ratio of 4.1, P/B ratio of 0.5 and P/S ratio of 1.0.

SunEdison Semiconductor Ltd. (SEMI, Financial)

Klarman purchased 7,897,979 shares of SunEdison SemiConductor, a 9.99% stake in the company. Klarman previously owned the stock in the second quarter of 2014 and closed out the position in the third quarter of 2014.

SunEdison is a global semiconductor company with a $821.8 million market cap whose products are used in electronics. The company’s shares gained 7.2% year to date to close at $19.91 per share on Tuesday.

For the third quarter, SunEdison reported sales of $213.2 million, a 0.8% decline from the same quarter a year ago due to flat volume and pricing and “a less favorable mix.” It also reported a net loss of $79.4 million, compared to $9.3 million a year ago.

Long-term revenue and earnings history:Ă‚

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SunEdiso has a P/B ratio of 1.1 and P/S ratio of 1.0.

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