Value investor Seth Klarman’s Baupost Group discloses a $67.88 million position in NCLH, citing attractive valuation and turnaround potential.
Baupost Group, led by value investor Seth Klarman, has acquired a $67,881,000 stake in Norwegian Cruise Line Holdings (NCLH). The position reflects NCLH’s discounted valuation, trading at 9x EV/EBITDA and under 10x forward earnings, below peers like Royal Caribbean and Carnival.
In Q1 2026, NCLH reported $2.33 billion in revenue and $104.67 million in net income, reversing a year-earlier loss. Occupancy is projected to exceed 104% in 2026, with luxury brand demand remaining strong. Debt maturities are largely deferred until 2030, providing time for cash flow improvements and leverage reduction.
Management’s turnaround plan includes $125 million in cost savings, while activist investor Elliott Management has pushed for operational and financial discipline. Capital spending is expected to decline after 2027, potentially freeing up nearly $1 billion annually for debt repayment.