Seth Klarman Q1 2026 Portfolio — AON & V Initiated, FIS & DG Fully Exited

Baupost Group, led by Seth Klarman, disclosed in its Q1 2026 13F filing that it initiated 5 new positions, including AON ($248M), V ($212M), and TFX ($191M). Simultaneously, it fully exited 5 holdings — FIS ($299M), DG ($274M), FISV ($148M), CRH ($134M), and LBTYA ($23M) — reshaping the portfolio to 20 positions with total AUM of $5.0B.

Top 5 Holdings — Q1 2026

• AMZN: $650M (12.7%)
• QSR: $597M (11.7%)
• WCC: $393M (7.7%)
• UNP: $374M (7.3%)
• ELV: $373M (7.3%)

Key Portfolio Moves — Q1 2026

The most notable move this quarter was Klarman's aggressive add to AMZN. He increased the position by 47% quarter-over-quarter to $650M (12.7% weight), elevating it to the portfolio's single largest holding. QSR ($597M, 11.7%), WCC ($393M, 7.7%), UNP ($374M, 7.3%), and ELV ($373M, 7.3%) rounded out the top five, with the top 5 holdings collectively representing 46.7% of the portfolio — reflecting a high-conviction, concentrated structure.

• AMZN: Added +47% to $650M — Elevated to top position; reinforces core big-tech conviction
• AON: Initiated at $248M — Entry into insurance & risk management adds defensive exposure
• V: Initiated at $212M — High-quality payment network operator replaces exited FIS & FISV
• FIS: Fully exited from $299M → 0 — Reflects uncertainty around fintech restructuring
• DG: Fully exited from $274M → 0 — Exits discount retail amid concerns over low-income consumer weakness
• TFX: Initiated at $191M — New entry into medical devices; fits classic value/healthcare thesis

On the new additions front, a clear rotation into insurance and financial infrastructure is evident. Klarman initiated AON ($248M) and V ($212M) to increase financial sector exposure, while fully divesting fintech payment names FIS ($299M) and FISV ($148M). Discount retailer DG ($274M) and building materials company CRH ($134M) were also eliminated from the portfolio, and WTW was trimmed by 34% to $260M. Taken together, these moves suggest an ongoing sector rotation toward defensively oriented, high-quality value names.

What Klarman's Portfolio Is Signaling

Baupost Group's latest rebalancing reaffirms Klarman's signature margin-of-safety philosophy — a concentrated focus on high-quality, wide-moat businesses. Expanding simultaneously into big-tech names like AMZN and GOOG while initiating financial infrastructure positions in AON and V reflects a dual pursuit of growth and defensiveness. Meanwhile, the decisive liquidation of FIS, FISV, and DG — names with deteriorating earnings momentum — reads as a deliberate upgrade in portfolio quality ahead of macro uncertainty. With the top 10 holdings accounting for 74% of the $5.0B AUM across a focused 20-stock portfolio, individual position management will be a critical driver of future performance.