Baupost Group’s Strategic Moves in Q4 2025
In the fourth quarter of 2025, Baupost Group, led by billionaire investor Seth Klarman, sold over 40% of its stake in Alphabet (NASDAQ: GOOG) while significantly increasing its position in the fintech company Fiserv (NASDAQ: FISV) by 146%. This shift comes after Alphabet’s stock rose 70% in the past year, influenced by its advancements in artificial intelligence amidst a U.S. Department of Justice lawsuit regarding monopolistic practices.
Fiserv’s stock, which had previously been stable, plummeted 44% in response to disappointing third-quarter earnings and reduced full-year guidance. The company’s earnings per share expectation dropped from about $10.23 to approximately $8.55. Klarman’s increased investment in Fiserv suggests confidence in its potential for recovery, as it currently trades at less than seven times forward earnings, compared to its historical average near 30 times.
