Seth Klarman (Trades, Portfolio) has revealed the dissolution of his holding in Translate Bio Inc. (TBIO, Financial) according to GuruFocus’ Real-Time Picks, a Premium feature.
Klarman founded The Baupost Group in 1983, which landed him as one of Forbes’ Highest-Earning Hedge Fund Managers in 2017. His strategy covers a wide range of investments, from traditional value stocks to distressed debt, liquidations and foreign bonds. Klarman is happy to hold cash when investment opportunities are scarce and had almost half of his portfolio on the sidelines in 2005 and 2006. He warns investors against focusing on returns while ignoring the risks that may be incurred investing.
On Sept. 14, the guru’s position in Translate Bio (TBIO, Financial) was dissolved with the finalization of its acquisition by Sanofi SA (SNY, Financial). Under the terms of the deal, Sanofi paid $38 per share of Translate Bio in cash for a total estimated value of $3.2 billion. Klarman racked up solid profits on his 18.04 million shares that were acquired at an average price of $10.59 per share. The removal of the shares had a -4.20% impact on Klarman’s equity portfolio and GuruFocus estimates the total gain of the holding at 252.78%.
Translate Bio is a clinical-stage mRNA therapeutics company developing a new class of potentially transformative medicines to treat diseases caused by protein or gene dysfunction. The company is developing MRT5005 for the treatment of cystic fibrosis and MRT5201 for the treatment of ornithine transcarbamylase deficiency.
“Sanofi and Translate Bio have a shared commitment to innovation in the mRNA space. With Sanofi’s long-standing expertise in developing and commercializing vaccines and other innovative medicines on a global scale, Translate Bio’s mRNA technology is now even better positioned to reach more people, faster,” Translate Bio CEO Ronald Renaud said. “The talented and dedicated Translate Bio team has built the foundation of a strong mRNA platform. Our expertise coupled with that of Sanofi has driven significant progress under the collaboration thus far, and we believe that this acquisition will strengthen the team’s ability to achieve the full potential of the mRNA technology.”
