Baupost Group Exits Vaxcyte Stake Amid Rising Losses

Seth Klarman's Baupost Group has made some significant changes to its portfolio in recent months, and one of the most notable is the complete elimination of its stake in Vaxcyte (NASDAQ:PCVX). According to a 13F filing from August 2026, Baupost had reduced its position from 800,000 shares to zero by June 30.

This move may have come as a surprise to some retail investors who followed Klarman into Vaxcyte in May, when the fund first disclosed its stake. At that time, the stock price was $56.00. However, by the time anyone knew Klarman had walked away, the quarter he exited in was already six weeks over.

Vaxcyte is a clinical-stage vaccine developer with no product revenue, and its value hinges on VAX-31, a 31-valent pneumococcal conjugate vaccine being tested in the OPUS-1 Phase 3 trial. The company has reported significant losses, including a Q2 2026 net loss of $284.30 million on $267.85 million in R&D spending.

The financial profile makes the exit easier to rationalize, especially considering Vaxcyte's reliance on equity offerings to fund its operations. In February 2026, the company raised $601.80 million through an equity offering.