"Tracking David Abrams’ Abrams Capital Management Portfolio – Q4 2020 Update"
"David Abrams’ 13F portfolio value increased this quarter from $3.16B to $3.55B. The number of positions decreased from 19 to 17.Abrams Capital Management dropped Franklin Resources and Akebia Therapeutics during the quarter.The top three positions are Lithia Motors, TransDigm Group, and Facebook, and they add up to one third of the portfolio.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  filed on 02/12/2021. Please visit our  article for an idea on his investment philosophy and our  for the fund's moves during Q3 2020.This quarter, Abrams’ 13F portfolio value increased from $3.16B to $3.55B. The number of holdings decreased from 19 to 17. The top three stakes are at ~38% of the 13F portfolio while the top five holdings are at ~55%. The largest position is Lithia Motors and it accounts for ~19% of the 13F portfolio.Stake Disposals:Franklin Resources (BEN): BEN was a large 5.28% of the 13F portfolio stake established in Q4 2015 at prices between $35 and $42 and increased by ~50% the following quarter at prices between $31.50 and $39. There was another ~25% stake increase in Q3 2018 at prices between $30 and $34.50. The stock currently trades below the low end of those ranges at $27.51.  Last quarter saw a ~15% trimming at prices between ~$19 and ~$23. That was followed with the disposal this quarter at prices between ~$18.50 and ~$25. They realized losses.Akebia Therapeutics (AKBA): AKBA was a 2.48% portfolio stake as of Q3 2018. Akebia merged with Keryx Pharmaceuticals in a transaction that closed in December 2018. Keryx shareholders received 0.37433 common shares of AKBA for each share held. Abrams had ~9.1M shares of Keryx for which he received 3.4M shares. Abrams also increased the overall position by ~20% during Q4 2018 at prices between $5.40 and $9.15. The stake was eliminated this quarter at prices between ~$2.20 and ~$3.78. AKBA currently trades at $4.44.New Stakes:None.Stake Decreases:PG&E Corp (PCG): The PCG stake is now a top five 8.15% of the portfolio position. It was purchased at ~$7 per share and it currently goes for $11.64. PG&E shares price dropped sharply in mid-January 2020 as they announced plans to file for bankruptcy. Abrams along with two other hedge funds stepped in and bought 45M shares near the lows.Sculptor Capital (SCU) previously Och-Ziff Capital Management: SCU is a 0.22% portfolio stake established in Q2 2016 at prices between $33 and $43.50 and increased by ~11% in the following quarter at around the same price range. There was another similar increase in Q4 2016 at a cost-basis of ~$32. Q1 2017 also saw a ~17% increase at prices between $22 and $36.30. There was a ~23% selling last quarter at prices between ~$10.50 and ~$14.50. This quarter saw another two-thirds selling at prices between ~$10.50 and ~$16. The stock is now at $24.35.Note: The prices quoted above are adjusted for the 1 for 10 reverse stock-split in January 2019.Stake Increases:Lithia Motors (LAD): LAD is currently the largest position at ~19% 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. Q4 2018 also saw a ~15% stake increase. The stock has more than tripled over the two-year holding period and is now at ~$381. This quarter saw a ~6% increase.Note: Their ownership stake in Lithia Motors is at ~9%.Bristol Myers Squibb Rights (BMY.RT): It is a 0.48% position that came about in Q1 2020 as a result of the acquisition of Celgene. Terms called for CELG shareholders to receive $50 cash, 1 share of Bristol Myers Squibb (BMY), and a tradeable Contingent Value Right that could pay out $9 cash in 2021 based on achieving milestones. Abrams held 6.75M shares of CELG for which they received the same number of BMY shares and the Rights. In Q4 2019, the BMY position was sold but the Rights were increased substantially. Last quarter saw a one-third reduction in the Rights while this quarter there was a two-thirds increase. In January, the Rights terminated automatically as one of the milestones was not met.Kept Steady:TransDigm Group (TDG): The large (top three) 9.41% TDG position was purchased in Q1 2020 at prices between $246 and $658 and the stock currently trades at ~$601.Facebook (FB): FB is a large (top three) 9.28% portfolio position purchased in Q4 2018 at prices between $124 and $163 and the stock currently trades at ~$262. Q1 2020 saw a ~18% stake increase at prices between $146 and $223.Asbury Automotive (ABG): ABG is a 8.71% 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. The stock currently trades at ~$161. Q1 2020 also saw a ~11% stake increase at an average cost in the high 40s.Note: Their ownership stake in the business is ~11%.Alphabet Inc. (GOOG): GOOG is a 7.24% position purchased in Q2 2018 at prices between $1005 and $1175 and the stock is now well above that range at ~$2101. There was a ~20% stake increase in Q1 2020 at prices between $1057 and $1527.AMERCO (UHAL): UHAL is a 7.19% position purchased in Q4 2016 at prices between $314 and $374 and increased by ~160% the following quarter at prices between $367 and $391. There was a ~45% increase in Q2 2017 at prices between $341 and $393 and that was followed with a similar increase in H1 2018 at prices between $323 and $384. The stock is now at ~$536.Teva Pharmaceutical (TEVA): TEVA is a large 6.54% 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 $11.04.Willis Towers Watson plc (WLTW): WLTW is a large 6.50% position purchased in Q1 2017 at prices between $117 and $133. The stock is now well above that range at ~$225. There was a ~6% trimming in Q4 2018 and since then the activity has been minor.Note: Aon plc (AON) is acquiring Willis Towers Watson plc in an all-stock deal (1.08 shares of Aon for each share held) announced in March.Kinder Morgan (KMI): KMI is a 4.81% of the portfolio position purchased in Q1 2018 at prices between $14.75 and $19.75. Q1 2020 saw a ~15% stake increase at prices between $10 and $22.25 and that was followed with a ~27% increase in Q2 2020 at prices between $12.73 and $18. The stock currently trades at ~$15.Energy Transfer LP (ET): The 3.86% ET stake was established in Q1 2020 at prices between $4.55 and $13.75 and it is now at ~$7. There was a ~64% stake increase last quarter at prices between $5.40 and $7.15.Camping World Holdings (CWH): CWH is a 3.75% 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 saw a ~12% stake increase at ~$7.90 per share while last quarter there was similar selling at ~$37.50. The stock is now at ~$37. They control ~12% of the business.O-I Glass (OI) previously Owens-Illinois: OI is a 2.33% of the portfolio stake established in Q4 2019 at prices between $8.50 and $12 and increased by ~42% next quarter at prices between $4.64 and $15. The stock currently trades at ~$12.50.TransMedics Group (TMDX): TMDX is a 1.96% of the 13F portfolio stake that came about as a result of its IPO in May 2019. Abrams was an early investor who led funding rounds going back to 2012. The stock started trading at ~$25 and currently goes for $35.43.Note: Regulatory filings since the quarter ended show them owning 1.3M shares (4.8% of the business). This is compared to ~3.5M shares in the 13F report. The selling happened in the low-30s price range.Clear Channel Outdoor Holdings (CCO): CCO is a very small 0.16% of the 13F portfolio stake. It is a very long-term position that has been in the portfolio since 2009. The stake has been kept almost steady since. In March 2012, CCO paid a special-dividend of $6.08 per share and that recouped almost the entire outlay on this investment. The stock currently trades at $2.03.The spreadsheet below highlights changes to Abrams’ 13F stock holdings in Q4 2020:Regulatory filings thru 11/24/2020:13G/A – 11/20 – Sculptor Capital – SCU – 1.12M shares – 4.96% of business."