Hedge fund takes $595 million stake in chipmaker Micron

Bloomberg NewsAugust 14, 2013 

A hedge fund took a $595 million stake in Micron Technology Inc. after the shares surged 57 percent in the first quarter.

Baupost Group LLC, the Boston-based hedge-fund firm run by Seth Klarman, bought 41.5 million shares of the Boise memory-chip maker during the three months ended in June, making it the firm’s fourth-biggest stock investment by market value, according to a filing Wednesday with the Securities and Exchange Commission.

Micron last month completed a $2 billion purchase of Elpida Memory Inc. as it seeks to deliver sustainable profits in the volatile market for memory chips used in personal computers and mobile devices. Micron has reported a net loss in five of its last 10 fiscal years.

Shares of Micron have jumped 136 percent this year, valuing the company at $15.5 billion. Baupost is now the firm’s fifth- biggest shareholder, according to data compiled by Bloomberg.

Hedge funds pool wealthy investors' money in sophisticated, sometimes speculative ways to generate high returns.

Money managers who oversee more than $100 million in equities must file a Form 13F within 45 days of each quarter’s end to list their U.S.-traded stocks, options and convertible bonds. The filings don’t show non-U.S. securities or how much cash the firms hold.

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