Latest news with #MarginofSafety:Risk-AverseValueInvestingStrategiesfortheThoughtfulInvestor
Yahoo
02-05-2025
- Business
- Yahoo
GDS Holdings Limited (GDS): Among Billionaire Seth Klarman's Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where GDS Holdings Limited (NASDAQ:GDS) stands against other billionaire Seth Klarman's stock picks with huge upside potential. Seth Klarman is a legendary name in the hedge fund space. He entered Wall Street straight out of college, where he worked as an analyst for Mutual Shares Corporation. Klarman then proceeded to Baupost Group, where he has been ever since. Like most hedge fund managers, Klarman has a set of principles that guide his investment decisions. Most of these principles were captured in a 1991 book titled 'Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor.' Klarman has established himself as the foremost proponent of value investing. In fact, this is the central theme of the 1991 book. He advocates for removing emotions from the investing process and seeing opportunities for what they are. He writes: 'Successful investors tend to be unemotional, allowing the greed and fear of others to play into their hands.' READ ALSO: Billionaire Andreas Halvorsen's 10 Stock Picks With Huge Upside Potential and Billionaire Steve Cohen's 10 Large-Cap Stock Picks With Huge Upside Potential. In an interview with the Harvard Business School, Klarman insisted that he is unwilling to abandon value investing for other approaches. He maintained that 'value investing is intellectually elegant. You're basically buying bargains. It also appeals because all the studies demonstrate that it works. People who chase growth, who chase highfliers, inevitably lose because they paid a premium price. They lose to the people who have more patience and more discipline.' No wonder Baupost is one of the best-performing hedge funds in the world. The fund might have lagged behind giants like Third Point and Elliot in the 2015-2024 period but the ability to stay true to a decades-old strategy and still turn up gains is impressive. Last year, the fund culled approximately 20% of its investing team to try and steer the ship towards larger gains. To this, Klarman commented that 'with a somewhat smaller investment team, we have increased the level of energy, focus, accountability, and collaboration.' And these efforts are already bearing fruit. By December last year, the fund had gained 10%, the first double-digit return since 2021, according to Bloomberg. In other words, after 42 years in the game, Klarman is still able to turn his investment fortunes around. That is why it is prudent to see what stocks are in his portfolio, especially those with a huge upside potential. For this list, we combed through Baupost Group's Q4 2024 SEC 13F filings. We focused only on shares in companies and excluded interests in ETFs and options. From the result, we ranked the stocks in ascending order based on analyst price targets and selected the top 10 companies with the highest upside potential (as of April 29). Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Seth Klarman of Baupost Group GDS Holdings Limited (NASDAQ:GDS) develops and operates high-performance data centers, mainly in China. It provides data center services like colocation (space for servers), managed services, and private connections to public clouds. It also offers hybrid cloud management and outsourced data center solutions. In Q4 2024, GDS Holdings Limited (NASDAQ:GDS) reported a 9.1% year-over-year net revenue increase to RMB2,690.7 million (US$368.6 million) for continuing operations. It stated that the growth came from the ramp-up of its data centers. For the full year, net revenue grew 5.5% to RMB10,322.1 million (US$1,414.1 million). Adjusted EBITDA rose 13.9% to RMB1,297.7 million in the quarter, with a margin of 48.2%. GDS Holdings Limited (NASDAQ:GDS) executed a landmark transaction on March 10, 2025, which resulted in monetizing a 70% equity interest in certain data centers to a private REIT (P-REIT). The transaction was at an enterprise value to EBITDA multiple of 13 times and yielded net cash proceeds of RMB500 million at closing. This move aligns with the company's asset monetization strategy whose aim is to reduce its net debt to 5-6 times EBITDA over the next 12-24 months. On March 20, 2025, JPMorgan raised its price target for GDS (NASDAQ:GDS) to $34.00 from $7.50. The analysts maintained a Neutral rating. Overall, GDS ranks 1st on our list of billionaire Seth Klarman's stock picks with huge upside potential. While we acknowledge the potential of GDS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GDS but that trades at less than 5 times its earnings check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
Tamboran Resources Corporation (TBN): Among Billionaire Seth Klarman's Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where Tamboran Resources Corporation (NYSE:TBN) stands against other billionaire Seth Klarman's stock picks with huge upside potential. Seth Klarman is a legendary name in the hedge fund space. He entered Wall Street straight out of college, where he worked as an analyst for Mutual Shares Corporation. Klarman then proceeded to Baupost Group, where he has been ever since. Like most hedge fund managers, Klarman has a set of principles that guide his investment decisions. Most of these principles were captured in a 1991 book titled 'Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor.' Klarman has established himself as the foremost proponent of value investing. In fact, this is the central theme of the 1991 book. He advocates for removing emotions from the investing process and seeing opportunities for what they are. He writes: 'Successful investors tend to be unemotional, allowing the greed and fear of others to play into their hands.' READ ALSO: Billionaire Andreas Halvorsen's 10 Stock Picks With Huge Upside Potential and Billionaire Steve Cohen's 10 Large-Cap Stock Picks With Huge Upside Potential. In an interview with the Harvard Business School, Klarman insisted that he is unwilling to abandon value investing for other approaches. He maintained that 'value investing is intellectually elegant. You're basically buying bargains. It also appeals because all the studies demonstrate that it works. People who chase growth, who chase highfliers, inevitably lose because they paid a premium price. They lose to the people who have more patience and more discipline.' No wonder Baupost is one of the best-performing hedge funds in the world. The fund might have lagged behind giants like Third Point and Elliot in the 2015-2024 period but the ability to stay true to a decades-old strategy and still turn up gains is impressive. Last year, the fund culled approximately 20% of its investing team to try and steer the ship towards larger gains. To this, Klarman commented that 'with a somewhat smaller investment team, we have increased the level of energy, focus, accountability, and collaboration.' And these efforts are already bearing fruit. By December last year, the fund had gained 10%, the first double-digit return since 2021, according to Bloomberg. In other words, after 42 years in the game, Klarman is still able to turn his investment fortunes around. That is why it is prudent to see what stocks are in his portfolio, especially those with a huge upside potential. For this list, we combed through Baupost Group's Q4 2024 SEC 13F filings. We focused only on shares in companies and excluded interests in ETFs and options. From the result, we ranked the stocks in ascending order based on analyst price targets and selected the top 10 companies with the highest upside potential (as of April 29). Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Seth Klarman of Baupost Group Tamboran Resources Corporation (NYSE:TBN) is an Australian natural gas explorer and producer. It develops low-carbon dioxide (CO₂) unconventional gas resources and serves the energy sector in Australia and the Asia-Pacific region. In Q2 FY25, Tamboran Resources Corporation (NYSE:TBN) achieved several significant operational milestones. It reported the successful drilling, casing, and cementing of the SS-3H well with a 10,000-foot horizontal section in just 25 days. This is a 43% increase in drilling speed compared to the previous SS-2H well. The company also completed the SS-2H ST1 well across 35 stages, delivering record proppant intensity for the basin with an average of approximately 2,710 pounds per foot (lb./ft)—26% higher than previous wells. Beyond its immediate operational activities, Tamboran Resources Corporation (NYSE:TBN) is strategically positioning itself for long-term growth. The firm has entered binding agreements with APA Group for the construction, ownership, and operation of a 12-inch Sturt Plateau Pipeline. This project is critical for the proposed SS Pilot Project. Additionally, Tamboran (NYSE:TBN) has signed a non-binding memorandum of understanding with Santos to explore potential Darwin LNG Train 2 expansion and collaboration in their joint EP 161 asset. Analysts hold a Buy rating with a 1-year average price target of $34.67. This projection points to a 66.48% upside potential from the current levels as of April 29. Overall, TBN ranks 2nd on our list of billionaire Seth Klarman's stock picks with huge upside potential. While we acknowledge the potential of TBN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TBN but that trades at less than 5 times its earnings check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
CRH plc (CRH): Among Billionaire Seth Klarman's Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where CRH plc (NYSE:CRH) stands against other billionaire Seth Klarman's stock picks with huge upside potential. Seth Klarman is a legendary name in the hedge fund space. He entered Wall Street straight out of college, where he worked as an analyst for Mutual Shares Corporation. Klarman then proceeded to Baupost Group, where he has been ever since. Like most hedge fund managers, Klarman has a set of principles that guide his investment decisions. Most of these principles were captured in a 1991 book titled 'Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor.' Klarman has established himself as the foremost proponent of value investing. In fact, this is the central theme of the 1991 book. He advocates for removing emotions from the investing process and seeing opportunities for what they are. He writes: 'Successful investors tend to be unemotional, allowing the greed and fear of others to play into their hands.' READ ALSO: Billionaire Andreas Halvorsen's 10 Stock Picks With Huge Upside Potential and Billionaire Steve Cohen's 10 Large-Cap Stock Picks With Huge Upside Potential. In an interview with the Harvard Business School, Klarman insisted that he is unwilling to abandon value investing for other approaches. He maintained that 'value investing is intellectually elegant. You're basically buying bargains. It also appeals because all the studies demonstrate that it works. People who chase growth, who chase highfliers, inevitably lose because they paid a premium price. They lose to the people who have more patience and more discipline.' No wonder Baupost is one of the best-performing hedge funds in the world. The fund might have lagged behind giants like Third Point and Elliot in the 2015-2024 period but the ability to stay true to a decades-old strategy and still turn up gains is impressive. Last year, the fund culled approximately 20% of its investing team to try and steer the ship towards larger gains. To this, Klarman commented that 'with a somewhat smaller investment team, we have increased the level of energy, focus, accountability, and collaboration.' And these efforts are already bearing fruit. By December last year, the fund had gained 10%, the first double-digit return since 2021, according to Bloomberg. In other words, after 42 years in the game, Klarman is still able to turn his investment fortunes around. That is why it is prudent to see what stocks are in his portfolio, especially those with a huge upside potential. For this list, we combed through Baupost Group's Q4 2024 SEC 13F filings. We focused only on shares in companies and excluded interests in ETFs and options. From the result, we ranked the stocks in ascending order based on analyst price targets and selected the top 10 companies with the highest upside potential (as of April 29). Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A construction worker wearing a hard hat and safety glasses at a site, carrying concrete blocks. CRH plc (NYSE:CRH) is a provider of building materials and construction solutions. Core products include ready-mixed concrete, cement, aggregates, and asphalt. The company serves markets in construction, infrastructure, and building materials across the Americas, Europe, and Asia-Pacific regions. In 2024, CRH plc's (NYSE:CRH) total revenues grew by 2% to $35.6 billion, and net income increased by 15% to $3.5 billion. Adjusted EBITDA rose 12% to $6.9 billion, the company's 11th consecutive year of margin expansion. The company's net income margin came in at 9.9%, a 110 basis point improvement year-over-year. The company says the growth is the result of continued commercial excellence, operational efficiencies, and strategic acquisitions. CRH plc (NYSE:CRH) continues to expand its global footprint through strategic acquisitions. Notable recent acquisitions include a $2.1 billion purchase of cement and readymixed concrete assets in Texas and a majority stake in Adbri Ltd, a market leader in cement and aggregates in Australia. Jim Mintern, company CEO, commented that the strength of their balance sheet has enabled them to 'invest $5 billion in 40 value-accretive acquisitions while also returning $3 billion of cash to shareholders through dividends and share buybacks.' As such, the outlook for the business 'remains positive, underpinned by favorable demand and positive pricing momentum.' Nonetheless, on April 14, 2025, RBC Capital analyst Anthony Codling lowered the firm's price target for CRH (NYSE:CRH) to $108 from $127. However, the analyst maintained an Outperform rating. The firm adjusted its model before the company's Q1 results, incorporating Q1 2025 weather data and uncertainties in the US economic outlook, the analyst stated in a research report. Overall, CRH ranks 10th on our list of billionaire Seth Klarman's stock picks with huge upside potential. While we acknowledge the potential of CRH as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CRH but that trades at less than 5 times its earnings check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
Liberty Global Ltd. (LBTYK): Among Billionaire Seth Klarman's Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where Liberty Global Ltd. (NASDAQ:LBTYK) stands against other billionaire Seth Klarman's stock picks with huge upside potential. Seth Klarman is a legendary name in the hedge fund space. He entered Wall Street straight out of college, where he worked as an analyst for Mutual Shares Corporation. Klarman then proceeded to Baupost Group, where he has been ever since. Like most hedge fund managers, Klarman has a set of principles that guide his investment decisions. Most of these principles were captured in a 1991 book titled 'Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor.' Klarman has established himself as the foremost proponent of value investing. In fact, this is the central theme of the 1991 book. He advocates for removing emotions from the investing process and seeing opportunities for what they are. He writes: 'Successful investors tend to be unemotional, allowing the greed and fear of others to play into their hands.' READ ALSO: Billionaire Andreas Halvorsen's 10 Stock Picks With Huge Upside Potential and Billionaire Steve Cohen's 10 Large-Cap Stock Picks With Huge Upside Potential. In an interview with the Harvard Business School, Klarman insisted that he is unwilling to abandon value investing for other approaches. He maintained that 'value investing is intellectually elegant. You're basically buying bargains. It also appeals because all the studies demonstrate that it works. People who chase growth, who chase highfliers, inevitably lose because they paid a premium price. They lose to the people who have more patience and more discipline.' No wonder Baupost is one of the best-performing hedge funds in the world. The fund might have lagged behind giants like Third Point and Elliot in the 2015-2024 period but the ability to stay true to a decades-old strategy and still turn up gains is impressive. Last year, the fund culled approximately 20% of its investing team to try and steer the ship towards larger gains. To this, Klarman commented that 'with a somewhat smaller investment team, we have increased the level of energy, focus, accountability, and collaboration.' And these efforts are already bearing fruit. By December last year, the fund had gained 10%, the first double-digit return since 2021, according to Bloomberg. In other words, after 42 years in the game, Klarman is still able to turn his investment fortunes around. That is why it is prudent to see what stocks are in his portfolio, especially those with a huge upside potential. For this list, we combed through Baupost Group's Q4 2024 SEC 13F filings. We focused only on shares in companies and excluded interests in ETFs and options. From the result, we ranked the stocks in ascending order based on analyst price targets and selected the top 10 companies with the highest upside potential (as of April 29). Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A young African American woman excitedly speaking on her smartphone while using a prepay mobile service. Liberty Global Ltd. (NASDAQ:LBTYK) is a multinational telecommunications company that operates primarily in Europe. It provides broadband internet, mobile communications, and television services to residential customers, businesses, and organizations. In Q4 2024, Liberty Global Ltd. (NASDAQ:LBTYK) reported solid financial performance across its operations. For the full year, the company generated approximately $22 billion in revenue and $8 billion in adjusted EBITDA across its four primary markets. The company has completed several strategic objectives, including spinning off Sunrise to Liberty Global shareholders in November 2024. This transaction delivered a $9 tax-free dividend on an $18 stock. Liberty Global (NASDAQ:LBTYK) is also making significant progress on its UK network company separation with proposals received from Tier 1 infrastructure investors. The company is doubling down on its active capital management strategy. It repurchased about 10% of its shares in 2024, totaling approximately $700 million, and plans to purchase up to 10% of shares outstanding in 2025. Perhaps this is why this stock accounts for 15% of Seth Klarman's public equities portfolio. Other institutional investors with substantial interest in the stock include Stifel Financial Corp, Blue Trust Inc., and Bank of New York Mellon Corp. All of these raised their position in the stock in the past quarter. Analysts hold a Moderate Buy opinion on Liberty Global Ltd. (NASDAQ:LBTYK), and their 12-month median price target points to a 39.86% upside from current levels as of April 29. Overall, LBTYK ranks 5th on our list of billionaire Seth Klarman's stock picks with huge upside potential. While we acknowledge the potential of LBTYK as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than LBTYK but that trades at less than 5 times its earnings check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
Viasat, Inc. (VSAT): Among Billionaire Seth Klarman's Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where Viasat, Inc. (NASDAQ:VSAT) stands against other billionaire Seth Klarman's stock picks with huge upside potential. Seth Klarman is a legendary name in the hedge fund space. He entered Wall Street straight out of college, where he worked as an analyst for Mutual Shares Corporation. Klarman then proceeded to Baupost Group, where he has been ever since. Like most hedge fund managers, Klarman has a set of principles that guide his investment decisions. Most of these principles were captured in a 1991 book titled 'Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor.' Klarman has established himself as the foremost proponent of value investing. In fact, this is the central theme of the 1991 book. He advocates for removing emotions from the investing process and seeing opportunities for what they are. He writes: 'Successful investors tend to be unemotional, allowing the greed and fear of others to play into their hands.' READ ALSO: Billionaire Andreas Halvorsen's 10 Stock Picks With Huge Upside Potential and Billionaire Steve Cohen's 10 Large-Cap Stock Picks With Huge Upside Potential. In an interview with the Harvard Business School, Klarman insisted that he is unwilling to abandon value investing for other approaches. He maintained that 'value investing is intellectually elegant. You're basically buying bargains. It also appeals because all the studies demonstrate that it works. People who chase growth, who chase highfliers, inevitably lose because they paid a premium price. They lose to the people who have more patience and more discipline.' No wonder Baupost is one of the best-performing hedge funds in the world. The fund might have lagged behind giants like Third Point and Elliot in the 2015-2024 period but the ability to stay true to a decades-old strategy and still turn up gains is impressive. Last year, the fund culled approximately 20% of its investing team to try and steer the ship towards larger gains. To this, Klarman commented that 'with a somewhat smaller investment team, we have increased the level of energy, focus, accountability, and collaboration.' And these efforts are already bearing fruit. By December last year, the fund had gained 10%, the first double-digit return since 2021, according to Bloomberg. In other words, after 42 years in the game, Klarman is still able to turn his investment fortunes around. That is why it is prudent to see what stocks are in his portfolio, especially those with a huge upside potential. For this list, we combed through Baupost Group's Q4 2024 SEC 13F filings. We focused only on shares in companies and excluded interests in ETFs and options. From the result, we ranked the stocks in ascending order based on analyst price targets and selected the top 10 companies with the highest upside potential (as of April 29). Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A telecommunications tower reaching high into the sky, connected to a satellite system. Viasat, Inc. (NASDAQ:VSAT) is a global communications company specializing in satellite and wireless technologies. It provides satellite internet, in-flight Wi-Fi, secure communications for governments, and connectivity solutions for maritime and residential customers. Analysts rate the stock as a Moderate Buy, with an average price target of $13.00, ranging from $10.00 to $19.00, reflecting a 38.74% rise from its last price of $9.44. In FQ3 2025, Viasat, Inc. (NASDAQ:VSAT) reported $1.1 billion in revenue, which was flat year-over-year. The Defense and Advanced Technologies segment registered robust revenue growth of 20%, but was offset by declines in the Communication Services segment. Adjusted EBITDA came in at $393 million, a 3% increase compared to the same period last year. This improvement was driven by strong performance in aviation services, government satellite communications, space and mission systems, and tactical networking products. Viasat, Inc. (NASDAQ:VSAT) continues to make significant progress in several growth areas. In aviation, the number of commercial in-flight connectivity aircraft in service grew approximately 13% year-over-year, while business jets grew about 18%. The company's ViaSat-3 F1 satellite has already served over 10,000 flights, with reported speeds of up to 130 Mbps on commercial flights. The company is also pioneering direct-to-device (D2D) satellite connectivity. On April 23, 2025, it demonstrated the technology in Brazil using 3GPP NTN standards to connect smartphones directly via satellite without terrestrial infrastructure. Overall, VSAT ranks 6th on our list of billionaire Seth Klarman's stock picks with huge upside potential. While we acknowledge the potential of VSAT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than VSAT but that trades at less than 5 times its earnings check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
