Through the Baupost Group, Seth Klarman has built a reputation as one of the most disciplined value investors on Wall Street, often holding cash for long stretches before stepping in when opportunities finally show up. When Klarman starts putting money to work, it usually means he sees something the market is missing.
In the most recently disclosed quarterly filing, Seth Klarman’s Baupost Group added to positions in three distinct businesses: Amazon (NASDAQ:AMZN | AMZN Price Prediction), Fiserv (NASDAQ:FISV), and Molina Healthcare (NYSE:MOH). The three holdings span e-commerce and cloud computing, payments infrastructure, and Medicaid-focused managed care, reflecting Klarman’s long-standing preference for businesses the market has either misunderstood or temporarily punished.
Amazon: Baupost Doubles Down as AWS Growth Reaccelerates
Amazon’s Q4 2025 results delivered the kind of fundamental improvement that value investors wait for. AWS revenue reached $35.58 billion in the quarter, growing 24% year over year, the fastest pace in 13 quarters. Advertising services contributed $21.32 billion, up 23% year over year. Operating income for the quarter was $24.98 billion.
Last quarter, Baupost increased its position by 100%, effectively doubling its stake and bringing Amazon to about 8.60% of the portfolio, making it one of the firm’s largest holdings. That kind of move signals strong conviction, especially given Klarman’s tendency to size positions selectively. Shares are up 45.16% over the past year, trading at $250.56 as of April 17, 2026. Baupost’s accumulation was likely below today’s current share price.
Fiserv: Aggressive Buying Signals Confidence in a Turnaround
Fiserv is the most contrarian of the three picks. The business has faced pressure from margin compression and slower growth, but the underlying payments infrastructure remains deeply embedded across the financial system. Q4 2025 adjusted operating margin contracted from 42.9% to 34.9%, driven by $73 million in One Fiserv transformation program costs. Organic revenue growth was flat in Q4, a step down from the 4% full-year rate. Full-year 2026 adjusted EPS guidance of $8.00 to $8.30 implies a potential decline from the $8.64 reported in 2025.
Last quarter, Baupost increased its position by roughly 146%, bringing Fiserv to about 2.60% of the portfolio. That’s a meaningful build into a stock that many investors have moved away from, which fits Klarman’s pattern of leaning into temporary dislocation. The stock trades at a forward P/E of 8x, with an analyst consensus price target of $74.42 against a current price of $63.97. Klarman’s thesis likely centers on the margin recovery that the One Fiserv program is designed to deliver.
Molina Healthcare: Baupost Steps In After a Sharp Selloff
Molina is the most beaten-down of the three. The stock is down 53.76% over the past year and 14.16% year to date, trading at $148.97 as of April 17, 2026. The sell-off followed a difficult Q4 2025 and weak 2026 guidance. Molina reported a Q4 2025 GAAP loss per diluted share of $3.15 and an adjusted loss per diluted share of $2.75, as the consolidated medical care ratio deteriorated to 94.6% in the quarter from 90.2% a year earlier. Full-year 2025 GAAP EPS came in at $8.92, and the company issued 2026 adjusted EPS guidance of at least $5.00 with premium revenue guidance of approximately $42 billion.
Baupost initiated its position last quarter, bringing Molina to about 1.91% of the portfolio. That kind of move into a declining stock highlights Klarman’s willingness to buy when sentiment is at its weakest. The company’s medical cost ratio spiked in the latest quarter, but that pressure may ease as Medicaid redetermination cycles stabilize. With the stock already rebounding from its lows, Baupost’s positioning suggests it sees the selloff as an overreaction rather than a permanent impairment.
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