Klarman's Baupost Piles Into Wesco, Amazon, and a Value Reversal Bet

Seth Klarman's Baupost Group disclosed its five largest long common-stock positions in a 13F filing on May 14, covering holdings as of March 31. The list spans an industrial distributor riding the AI infrastructure buildout, a hyperscaler, a managed-care insurer, a quick-service franchisor, and a railroad with a pending merger.

Wesco International (WCC) is the largest reported holding. The electrical and communications distributor posted data-center sales of $1.4 billion in the first quarter, up about 70% year over year. Backlog rose 22% to a record. Adjusted diluted EPS climbed 52.5% to $3.37. Management raised full-year adjusted EPS guidance to $15.00–$17.00. Shares are up 65% over the past year. Goldman, PineBridge, and Neuberger have each framed 2026 as an AI capex-driven infrastructure cycle, putting Wesco on the receiving end of purchase orders for switchgear, fiber, and copper that connect hyperscaler racks.

Amazon.com (AMZN) is the second-largest disclosed stake. The company beat first-quarter earnings estimates by a wide margin, reporting EPS of $2.78 against a $1.73 consensus estimate, on revenue of $181.52 billion, up 16.6%. AWS revenue grew 28%, the fastest pace in 15 quarters. CEO Andy Jassy said the chips business topped a $20 billion revenue run rate. Amazon guided second-quarter sales to $194–$199 billion. Prediction markets assign a 98.5% probability that the company's 2026 capex exceeds $170 billion. Analysts have 62 buy or strong buy ratings and zero sells on Amazon.

Elevance Health (ELV) is the third-largest position. The health insurer reported a benefit-expense ratio of 89.7% in the first quarter, up 80 basis points, and Health Benefits operating gain fell to $896 million from $1.56 billion a year earlier. The stock dropped 11.31% over one week after the July 15 earnings report. CEO Gail Boudreaux told investors the company is raising adjusted EPS guidance to at least $27.00 for 2026 and targets at least 12% adjusted EPS growth in 2027. Elevance carries $5.3 billion of remaining buyback authorization and raised operating cash flow guidance to at least $6.0 billion. On a forward EPS of $32.39, the implied forward P/E is roughly 13. Analysts have zero sell ratings on the stock. The beta of 0.68 suggests limited drawdown volatility.

Restaurant Brands International (QSR) is the fourth-largest. The franchise owner of Burger King, Tim Hortons, Popeyes, and Firehouse Subs posted first-quarter Burger King U.S. comparable sales of +5.8% versus −1.1% a year earlier. Tim Hortons reported a 20th consecutive quarter of positive comps at +1.6%. Free cash flow reached $169 million, up 213%. Management targets 8% or more organic adjusted operating income growth for fiscal 2026 and has $500 million of share repurchases planned alongside a $0.65 quarterly dividend. The beta of 0.53 makes this the portfolio's cash-flow anchor.

Union Pacific (UNP) rounds out the five. The railroad operator posted an adjusted operating ratio of 59.9% in the first quarter, improved 80 basis points, and adjusted diluted EPS of $2.93 matched the estimate. Terminal dwell of 19.7 hours was the company's best ever. The company is pursuing regulatory approval to acquire Norfolk Southern, which would create the first transcontinental railroad in U.S. history. CEO Jim Vena said the company has "a solid foundation for another year of industry-leading results." Shares are up 31% year to date. Prediction markets assign a 68% probability that Union Pacific beats quarterly earnings at the upcoming July 23 report.

Across the five positions, Klarman pairs AI infrastructure plays with a value-reversal bet, a cash-flow anchor, and a catalyst-driven merger. The 13F filing captures holdings as of March 31; the next quarterly update is due by mid-August.