Seth Klarman's Baupost Invests $393M in WESCO International, Betting on Data Center Growth
Legendary value investor Seth Klarman's Baupost fund has taken a significant stake in WESCO International, an industrial distributor, ranking it as the #2 holding in their 2026 value stock portfolio. The investment reflects confidence in WESCO's dominance in data center infrastructure, where the company generated $4.3 billion in sales in 2025, up 50% year-over-year. The move highlights how some prominent investors are pursuing traditional industrial plays tied to AI infrastructure rather than direct AI stock exposure.
Seth Klarman's Baupost fund has invested $393.2 million in WESCO International (NYSE:WCC), positioning it as the fund's second-largest value stock holding in 2026. WESCO is an industrial distributor serving construction, data centers, utilities, and industrial facilities across more than 50 countries. The company's data center business has emerged as its primary growth driver, generating $4.3 billion in revenue during 2025—a 50% year-over-year increase—driven by hyperscale and AI infrastructure demand. WESCO provides end-to-end services from initial power and electrical buildout through connectivity and AI compute environments, creating recurring revenue streams. The stock trades at a Price/Sales ratio of 0.57x versus a sector median of 1.8x, suggesting the market undervalues its competitive positioning and growth trajectory. WESCO's scale and distribution network across 50+ countries provide competitive advantages over rivals like W.W. Grainger and manufacturers such as Hubbell and nVent.
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Seth Klarman Is Ignoring AI Hype and Buying This Industrial Stock
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