Baupost’s Seth Klarman found a slew of buying opportunities in the first quarter, including a handful of artificial intelligence-linked stocks, according to a new regulatory filing. The noted hedge fund investor added a sizable stake in web recommendation platform Outbrain last quarter, building a bet worth more than $100 million and making it his ninth largest position. Outbrain uses AI predictions to create web services for both advertisers and media owners. Klarman also took a small bet in Soundhound AI , a voice AI and speech recognition company. The stake was only worth about $6.7 million, however. In the meantime, the manager purchased ADRs of GDS Holdings , a developer and operator of high-performance data centers in China that also incorporates AI technology. Klarman has drawn comparisons to Warren Buffett for his disciplined and patient value style. And just like Buffett, Klarman has increased his exposure to the tech sector in recent years to take advantage of its explosive growth. In this case, Klarman significantly increased exposure to the group after prices got a lot cheaper. The investor, who now manages $30 billion at Baupost, in a rare CNBC interview last year warned of an “everything bubble.” He said the bubble includes cryptocurrencies, SPACs and a host of other trends that pose dangers to investors. Klarman hasn’t stopped hunting for bargains in neglected corners of the market. He said real estate has become a “hunting ground,” allowing him “to buy, to inject capital, to make some rescue loans.”
