Baupost Revealed As 2.3% Banco Espirito Santo Stakeholder

Tyler Durden's picture

As the world awaits the last day of the week and hopefully some clarity on the fate (or even state) of Portugal's Banco Espirito Santo ("BES"), which ultimately is controlled by the nebulous and unpublished accounts of the topmost HoldCo, Espirito Santo International, which in turn is merely a family investment vehicle of the Espirito Santo family as we showed this morning, moments ago BES issued two press releases whose purposes was to provide an updated org chart of the troubled financial entity, and more importantly, to boast that as of today, the deepest of value investors, Seth Klarman's Baupost was a 2.27% investor in the company.

Or rather, Baupost bought some 48.1 million BES shares on July 3 (bringing the fund's total holdings to 127.4 million shares) when the stock of BES was substantially higher. How much higher? Enough for Klarman to lose nearly 30% in one week.


But while the ultimate fate of Klarman's investment is unknown, what is certain is that if BES and ESI's "Hail Mary" hope to restore confidence in the ailing financial conglomerate was the disclosure that a value/vulture investor is now present among the ranks of other investors, which as of July 8 also includes BlackRock, said hope will be promptly crushed, only to be replaced with the one thing the US president loathes the most: "cynicism."

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Thomas's picture

As Hussman says, somebody has to own it.

CrazyCooter's picture

2.27% of nothing is still better than nothing!



Manthong's picture

At least it looks better on paper.

Heh heh.. but BlackRock is in it for twice as much as this Portuguese Porker wholly gives up the ghost.

zjxn06's picture

Klarman has large Cajones.

Spitzer's picture

I don't like him. He jumps in and rides bailouts. Like he did with CIT debt. I think it was cit

I hope he gets Corzined.

Portugese... Are they some WOP half breed ?



Leonardo Fibonacci2's picture

zjxn06 wrote "Klarman has large Cajones."

BFD = Big fucking deal!

CrazyCooter's picture

Not to be pedantic, but ...

"Klarman has large Cajones."

... so do most testicular cancer patients, but I digress.



Seasmoke's picture

This could be a problem for Klaravich Stables @ Saratoga. Duly noted.

overexposed's picture

Sounds like a prime candidate for a bailout!

Yen Cross's picture


buzzsaw99's picture

So you can give your heart to Jesus, but your ass belongs to the Corps!

Yen Cross's picture

 Hey Buzz, That guy "Bear" is a pretty smart cookie. I've known him for 5-6 years.

  He's right about the 100.56 level on usd/jpy. I actually think that it might be lower. .9975 area?

 Just imagine the options on usd/jpy 100.00?

WTFUD's picture

Keep Stacking Baupost!
Mario Draghi (weez got your back ).

AbbeBrel's picture

Probably some well connected SICAV ( manage to unload onto Klarman, while promising that his face would NOT need any cosmetic surgery after the transaction. So much for promises.

The "SICAV" is an investment vehicle that has the nice feature in the countries where it is legal - to only pay 1% in taxes on ROI... One way for the elites to hang on to their gains...

Leonardo Fibonacci2's picture

BNP Paribas sold to Klarman & company!!  BNP unloaded just in time.  This portugese bank is going to the caca crapper!