Tracking David Abrams' Abrams Capital Management Portfolio - Q1 2023 Update

This article is part of a series that provides an ongoing analysis of the changes made to David Abrams’ 13F portfolio on a quarterly basis. It is based on Abrams’ regulatory 13F Form filed on 5/12/2023. Please visit our Tracking David Abrams’ Abrams Capital Management article for an idea on his investment philosophy and our last update for the fund's moves during Q4 2022.

This quarter, Abrams’ 13F portfolio value increased from $2.80B to $3.16B. The number of holdings remained steady at 15. The top three stakes are at ~45% of the 13F portfolio while the top five holdings are at ~62%.

Stake Increases:

Cantaloupe Inc. (CTLP) previously USA Technologies: The small 1.29% CTLP position was purchased in Q1 2021 at prices between ~$9.45 and ~$12.45 and it is now at $6.53. Q1 2022 saw a ~50% stake increase at prices between ~$6.50 and ~$8.75. That was followed with a ~130% increase this quarter at prices between ~$4.35 and ~$6.20.

Stake Decreases:

Meta Platforms (META) previously Facebook: META is a large (top three) 14.42% portfolio position purchased in Q4 2018 at prices between $124 and $163. Q1 2020 saw a ~18% stake increase at prices between $146 and $223. The last quarter saw another ~80% stake increase at prices between ~$89 and ~$140. The stock currently trades at ~$249. There was a marginal reduction this quarter.

Asbury Automotive (ABG): ABG is a top-three ~14% position established in Q3 2017 at prices between $50 and $62 and increased by ~45% in Q3 2018 at prices between $67 and $77.50. Next quarter saw another 20% stake increase at prices between $59 and $72. Q1 2020 also saw an ~11% stake increase at an average cost in the high 40s. The stock currently trades at ~$203. There was marginal trimming this quarter.

Note: Their ownership stake in the business is ~9%.

Teva Pharmaceutical (TEVA): TEVA is a 2.23% of the portfolio stake established in Q3 2017 at prices between $15.50 and $33.50. Q3 2019 saw a one-third stake increase at prices between $6 and $9.60. The stock currently trades at $7.57. The last quarter saw a one-third reduction at prices between ~$8 and ~$9.50. That was followed with a ~50% selling this quarter at prices between ~$8.35 and ~$11.40.

Kept Steady:

Lithia Motors (LAD): LAD is currently the largest position at ~17% of the portfolio. It was established in Q2 2018 at prices between $95 and $105 and almost doubled next quarter at prices between $81 and $99. There have been minor increases since. The stock is now at ~$235.

Note: Their ownership stake in Lithia Motors is at ~9%.

TransDigm Group (TDG): The large (top five) 8.54% TDG position was purchased in Q1 2020 at prices between $246 and $658 and the stock currently trades at ~$780. There was a roughly one-third reduction last quarter at prices between ~$510 and ~$640.

Alphabet Inc. (GOOG): GOOG is a large 7.68% position purchased in Q2 2018 at prices between ~$50 and ~$59. There was a ~20% stake increase in Q1 2020 at prices between ~$53 and ~$76. The last quarter saw a similar reduction at prices between ~$83.50 and ~$105. The stock is now at ~$122.

Energy Transfer LP (ET): The ~7% ET stake was established in Q1 2020 at prices between $4.55 and $13.75. There was a ~64% stake increase in Q3 2020 at prices between $5.40 and $7.15. The stock is now at ~$12.80. There was a ~20% selling last quarter at prices between ~$11 and ~$12.75.

Coupang, Inc. (CPNG): The 6.80% CPNG stake was purchased in Q3 2021 at prices between ~$27 and ~$44.50. Next quarter saw a ~120% stake increase at prices between ~$25.50 and ~$30.50. That was followed with a ~40% stake increase in Q1 2022 at prices between ~$15.50 and ~$28.75. The stock is now at $15.73.

U-Haul Holding Company (UHAL): UHAL is a 6.78% position purchased in Q4 2016 at prices between $31 and $37 and increased by ~160% the following quarter at prices between $37 and $39. There was a ~45% increase in Q2 2017 at prices between $34 and $39 and that was followed with a similar increase in H1 2018 at prices between $32 and $38. Q4 2021 saw a ~20% reduction at prices between ~$65 and ~$76. There has been minor trimming since. The stock is now at ~$63.

Note: the prices quoted above are adjusted for the 10-for-1 stock-split last November.

Willis Towers Watson plc (WTW): WTW is a large ~6% position purchased in Q1 2017 at prices between $117 and $133. Since then, the activity had been minor. Last quarter saw a ~25% selling at prices between ~$201 and ~$248. The stock is now at ~$221.

Tempur Sealy International (TPX): TPX is a 4.50% of the portfolio stake established in Q3 2021 at prices between ~$37.50 and ~$49.60 and the stock currently trades at $37.25.

Camping World Holdings (CWH): CWH is a 3.37% position purchased in Q3 2018 at prices between $19 and $27 and increased by two-thirds next quarter at prices between $11.25 and $22.50. Q2 2019 saw a ~30% stake increase at prices between $11 and $13 per share. Q4 2019 also saw a ~12% stake increase at ~$7.90 per share while in Q3 2020 there was similar selling at ~$37.50. The stock is now at $27.45. They control ~12% of the business.

Nuvation Bio (NUVB): Panacea Acquisition merged with Nuvation Bio in a de-SPAC transaction that closed in February 2021. The stake was established during that quarter when it traded between ~$9 and ~$14.60. It currently trades at $1.67, and the stake is at 0.20% of the portfolio.

USCB Financial Holdings (USCB): USCB is a minutely small 0.20% portfolio position established in Q3 2021. The stake saw a ~23% selling last quarter.

The spreadsheet below highlights changes to Abrams’ 13F stock holdings in Q1 2023:

Source: John Vincent. Data constructed from Abrams Capital Management’s 13F filings for Q4 2022 and Q1 2023.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.