Hedge Funds

Value investing giant sells Qualcomm stake within six months of buying

Key Points
  • Baupost Group sold its stake of 5.2 million shares in Qualcomm in the third quarter, a filing showed Monday.
  • The hedge fund bought the stake in the first quarter.
  • Baupost also initiated a stake in AMC Entertainment in the third quarter.
Seth Klarman, founder of the Baupost Group
Scott Eells | Bloomberg | Getty Images

Value investor Seth Klarman's Baupost Group hedge fund has eliminated its stake in Qualcomm just two quarters after taking it.

Baupost acquired 5.2 million shares of Qualcomm in the first quarter, and sold them all in the third quarter, according to a required quarterly filing Monday with the U.S. Securities and Exchange Commission.

Sometimes compared to Warren Buffett, investor Klarman is reclusive and tends to focus on the long-term. Klarman has generated tens of billions of dollars in gains for his clients across decades.

The hedge fund also initiated a stake in AMC Entertainment with 3.6 million shares, the third quarter filing showed.

Qualcomm shares fell almost 9.6 percent between the end of the first quarter and the end of the third quarter, although it's unclear from the filings exactly when Baupost bought and sold.

Shares fell nearly 6.7 percent on Oct. 31 after The Wall Street Journal reported that Apple was designing products for next year that would not include Qualcomm components. Both companies declined to comment.

But Qualcomm shares have subsequently surged 30 percent to their highest since January. Broadcom made a more than $100-billion unsolicited takeover bid for the rival chipmaker, which Qualcomm rejected Monday. Qualcomm shares closed up nearly 3 percent.

— CNBC's Tae Kim contributed to this report.

WATCH: Qualcomm says Broadcom's takeover bid undervalues company

Qualcomm says Broadcom's takeover bid dramatically undervalues company