Baupost Group Boosts Stake in Dollar General Amid Analysts' Optimism

Baupost Group has increased its stake in Dollar General by 26.7% in Q2 2025, highlighting confidence in the company's growth potential. Analysts set a one-year target price average of $117.58, while GuruFocus estimates a one-year GF Value of $153.60, suggesting a significant upside of 32.65%. The consensus from 30 brokerage firms is an average recommendation of 2.4, categorizing it as "Outperform."

Baupost Group, the renowned hedge fund managed by billionaire investor Seth Klarman, has significantly increased its stake in Dollar General (NYSE: DG) during the second quarter of 2025. According to the latest 13F filing, Baupost raised its position by 26.7%, adding 2.67 million shares to its portfolio [2].

This move underscores Baupost's confidence in Dollar General's growth prospects. The company's stock has seen substantial appreciation, with analysts setting a one-year target price average of $117.58, while GuruFocus estimates a one-year GF Value of $153.60. This suggests a significant upside potential of 32.65% [2]. The consensus from 30 brokerage firms is an average recommendation of 2.4, categorizing it as "Outperform" [2].

Dollar General's position value surged 65% to $305 million, reflecting both share accumulation and strong stock performance [3]. The increase in Baupost's stake in Dollar General aligns with its broader strategy of investing in companies with strong fundamentals and growth prospects [2].

In addition to its increased stake in Dollar General, Baupost also initiated new positions in Fiserv Inc. (FISV), Amcor PLC (AMCR), and PagSeguro Digital Ltd. (PAGS) during the second quarter of 2025. The fund exited its stakes in Clarivate (CLVT) and Solventum (SOLV), indicating a focus on companies with strong growth prospects [3].

Overall, Baupost's investment in Dollar General reflects its strategy of investing in companies with robust growth potential. The latest 13F filing provides a snapshot of Baupost's holdings as of June 30, 2025, and highlights the fund's continued interest in the consumer staples sector.

References:
[1] https://www.quiverquant.com/news/Fund+Update%3A+River+Road+Asset+Management%2C+LLC+opened+a+%2440.1M+position+in+FIS+stock
[2] https://www.ainvest.com/news/baupost-group-q2-moves-increased-stakes-alphabet-dollar-general-2508/
[3] https://www.benzinga.com/markets/equities/25/08/47113255/warren-buffett-disciple-seth-klarmans-baupost-group-increases-alphabet-dollar-general-holdings-in-q2