Seth Klarman's Hedge Fund Slashed This Stock by 54% — Even as It Scores Highly on Growth and Momentum

Seth Klarman‘s Baupost Group hedge fund cut its stake in Wesco International Inc. (NYSE:WCC) by more than half in the second quarter, even though the stock carries some of the strongest scores in the fund’s portfolio, according to the fund’s latest 13F filing with the U.S. Securities and Exchange Commission (SEC).

A High-Scoring Stock

Wesco ranked in the 88th percentile on Growth, the 90th percentile on Momentum, and the 85th percentile on Quality — some of the highest rankings across Baupost’s holdings, according to Benzinga Edge Rankings.

Despite that, the fund’s stake fell from roughly 1.44 million shares in the first quarter to 662,881 shares in the second quarter, a cut of more than 50%, according to the filing disclosed with the SEC in August.

Wesco supplies the power, cooling, and infrastructure equipment data centers need to support AI.

Riding the Data Center Boom

Wesco posted record second-quarter net sales of $6.67 billion, up 13% year-over-year, while analysts expected $6.42 billion in sales, according to Benzinga Pro. Adjusted earnings per diluted share rose 35% to a record $4.57 compared to the $3.97 estimate.

The company also agreed in June to acquire Newark Engineering Group for roughly $136 million, a deal that closed July 1 and expanded its data-center cooling capabilities in Southeast Asia.

How Have Shares Performed in 2026?

Year to date, Wesco shares have climbed 45.32%, while the stock has gained 67.19% over the past year.

Over the past six months alone, shares are up 32.71%.

Price Action: On Wednesday, the stock closed 1.29% lower at $355.51.

According to the edge rankings, Wesco’s stock has a positive price trend across the short, medium, and long term.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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