Baupost Boosts Amazon Stake by 47 Percent Making It Top Holding

Baupost Group increased its stake in Amazon by 47 percent in the first quarter, according to a regulatory filing. The increase made the e-commerce and cloud-computing company the hedge fund's largest disclosed U.S. equity holding at the end of March.

The position was valued at roughly $650 million, surpassing its longtime holdings in Restaurant Brands, Wesco International and Union Pacific. The Boston-based firm, which manages more than $20 billion in assets, continued to seek opportunities even as valuations rose in connection with the rally in U.S. stocks.

It initiated sizable new positions in insurance broker Aon, payments company Visa and medical-device maker Teleflex, the filing released Thursday showed. The fund also increased its positions in Alphabet and Ferguson Enterprises. It trimmed stakes in Union Pacific and Willis Towers Watson during the quarter.

The hedge fund follows a patient and often contrarian approach to markets. Its strategy draws from value-investing principles that emphasize disciplined risk assessment and valuation. A book written in 1991 that outlined this approach has become a cult classic among investors. It is now out of print and sells for thousands of dollars in the secondary market.