SusanneB
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 2/9/2024. 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 Q3 2023.
This quarter, Abrams’ 13F portfolio value increased from $3.03B to $3.22B. The number of holdings remained steady at 14. The top three stakes are at ~49% of the 13F portfolio while the top five holdings are at ~65%.
Stake Decreases:
Meta Platforms (META): META is a large (top five) 7.83% 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. Q4 2022 saw another ~80% stake increase at prices between ~$89 and ~$140. There was a ~47% selling during Q2 2023 at prices between ~$208 and ~$289. That was followed by a ~18% reduction last quarter at prices between ~$283 and ~$325. This quarter also saw a ~23% selling at prices between ~$288 and ~$358. The stock currently trades at ~$468.
Teva Pharmaceutical (TEVA): TEVA is a 1.95% 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. Q4 2022 saw a one-third reduction at prices between ~$8 and ~$9.50. That was followed with a ~50% selling in the next quarter at prices between ~$8.35 and ~$11.40. This quarter saw another ~25% reduction at prices between ~$8.10 and ~$10.70. The stock currently trades at ~$12.
USCB Financial Holdings (USCB): USCB is a minutely small 0.06% portfolio position established in Q3 2021. The stake saw a ~23% selling during Q4 2022. This quarter saw the stake almost sold out.
Kept Steady:
Lithia Motors (LAD): LAD is currently the largest position at ~25% of the portfolio. It was established in Q2 2018 at prices between $95 and $105 and almost doubled the next quarter at prices between $81 and $99. The stock is now at ~$303.
Note: Their ownership stake in Lithia Motors is at ~9%.
Asbury Automotive (ABG): ABG is a top-three ~15% 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 a ~11% stake increase at an average cost in the high 40s. The stock currently trades at ~$216.
Note: Their ownership stake in the business is ~10%.
Alphabet Inc. (GOOG): GOOG is a large ~10% of the portfolio 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. Q4 2022 saw a ~20% selling at prices between ~$83.50 and ~$105. The stock is now at ~$150.
U-Haul Holding Company (UHAL): UHAL is a ~9% 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. The stock is now at ~$64.
Energy Transfer LP (ET): The 7.65% 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 while in Q4 2022 there was a ~20% selling at prices between ~$11 and ~$12.75. The stock is now at $13.94.
Coupang Inc. (CPNG): The 6.55% 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 $14.46.
Willis Towers Watson plc (WTW): WTW is a ~6% position purchased in Q1 2017 at prices between $117 and $133. Since then, the activity had been minor. Q4 2022 saw a ~25% selling at prices between ~$201 and ~$248. The stock is now at ~$272.
Tempur Sealy International (TPX): TPX is a 5.70% of the portfolio stake established in Q3 2021 at prices between ~$37.50 and ~$49.60 and the stock currently trades at $50.60.
Camping World Holdings (CWH): CWH is a 4.17% 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 $25.38. They control ~12% of the business.
Cantaloupe Inc. (CTLP): The small 1.65% CTLP position was purchased in Q1 2021 at prices between ~$9.45 and ~$12.45. Q1 2022 saw a ~50% stake increase at prices between ~$6.50 and ~$8.75. That was followed with a ~130% increase during Q1 2023 at prices between ~$4.35 and ~$6.20. The stock is now at $6.28.
Note: They own ~10% 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 $1.76, and the stake is at 0.18% of the portfolio.
The spreadsheet below highlights changes to Abrams’ 13F stock holdings in Q4 2023:
David Abrams – Abrams Capital Management Portfolio – Q4 2023 13F Report Q/Q Comparison (John Vincent (author))
Source: John Vincent. Data constructed from Abrams Capital Management’s 13F filings for Q3 2023 and Q4 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.
