Baupost Group’s Seth Klarman picked up Amazon in the fourth quarter, a bet that has yet to work out for the value investor this year as tech stocks take a hammering. The Boston-based hedge fund manager took a new position in Amazon amounting to $489.7 million, making the online retailer the firm’s second-largest holding, according to a securities filing. However, Amazon is already down 13% year to date amid ongoing fears the tech sector is richly valued, and may not be able to deliver on lofty AI promises. As a matter of fact, the megacap is more than 22% off its most recent high, having entered a bear market last week. Amazon, which is one of the three big hyperscalers alongside Alphabet and Microsoft, is a rare position for Klarman who has previously drawn comparisons to Warren Buffett — even referred to as the “Oracle of Boston” — because of his adherence to value investing principles. Indeed, Klarman alongside other value investors have struggled in the last decade during a period of historically low interest rates as growth stocks led the stock market. Still, Amazon is considered a buying opportunity for many on Wall Street. The stock plunged this month after its latest earnings miss, as well as growing margin and capex concerns, but many analysts remain bullish on the stock . They expect the company’s higher spend is justified. Klarman is likely attracted to the stock’s low forward P/E of 25. This compares to an average 5-year P/E ratio of 35, per FactSet. Baupost also took new stakes in Grupo Aeromexico , Mexico’s leading aviation holding company, and Molina Healthcare , a managed care company. They are down more than 12% and 21% year to date, respectively. It raised its exposure to Fidelity Information Services and Willis Towers Watson , which are also in negative territory to start the year. It reduced its allocation to Restaurant Brands International , its top holding, and also cut its stake Alphabet .