Seth Klarman's Top Five Stocks Reveal AI Capex Barbell and Contrarian Bets

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Summary · why it matters

Seth Klarman's Baupost Group disclosed its five largest long common-stock positions as of March 31, 2026, in a 13F filing. The top holdings include Wesco International, which saw data center sales surge approximately 70% year-over-year to $1.4 billion, and Amazon, where AWS grew 28% and the company beat EPS estimates by 60.69%. Elevance Health, trading at a 13x forward P/E, raised its 2026 adjusted EPS guidance to at least $27.00, while Restaurant Brands International posted Burger King US comparable sales of +5.8% and free cash flow of $169 million. Union Pacific is pursuing a merger with Norfolk Southern to create the first transcontinental railroad, with shares up 30.8% year-to-date. Four of the five positions carry BUY ratings with double-digit or better base case upside, according to the analysis.

Impact on stocks 7

Artificial Intelligence▲ · 3 stocks
Amazon.com Inc
AMZN
▲ PositiveDemandrelevance

AWS grew 28% and the company beat EPS estimates by 60.69%, indicating strong cloud demand.

Industrials▲ · 2 stocks
Union Pacific Corporation
UNP
▲ PositiveCapitalrelevance

Pursuing a merger with Norfolk Southern to create the first transcontinental railroad, shares up 30.8% YTD.

Health Care▲ · 1 stocks
Elevance Health Inc
ELV
▲ PositiveCapitalrelevance

Raised 2026 adjusted EPS guidance to at least $27.00 and trades at a low 13x forward P/E.

Consumer Discretionary▲ · 1 stocks

Theme Impact 4

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