"Tracking David Abrams’ Abrams Capital Management Portfolio – Q4 2017 Update"
"David Abrams’ 13F portfolio value increased this quarter from $2.56B to $2.97B. The number of positions increased from 18 to 20.Abrams Capital Management added Time Warner and PG&E during the quarter.The top three positions are Western Union, Teva Pharmaceutical, and Franklin Resources and they add up to ~38% 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 02/13/2018. Please visit our  article for an idea on his investment philosophy and our  for the fund's moves during Q3 2017.This quarter, Abrams’ 13F portfolio value increased ~16% from $2.56B to $2.97B. The number of holdings increased from 18 to 20. The top three stakes are at ~38% of the 13F portfolio while the top five holdings are at 56%. The largest position is Western Union and it accounts for ~14% of the 13F portfolio.Stake Disposals:None.New Stakes:Time Warner Inc. (TWX): TWX is large (top five) ~9% of the portfolio position established this quarter at prices between $87 and $104 and the stock is currently at $94.31.Note: TWX had a previous roundtrip: It was a top three ~12% portfolio stake established in Q4 2016 at prices between $78.50 and $97 and disposed last quarter at prices between $99 and $103. In October 2016, AT&T (T) agreed to acquire Time Warner in a cash-and-stock ($53.75 cash) deal worth $107.50 per share. In November last year, the DOJ sued to block the transaction saying the deal violates antitrust law.PG&E Corp. (PCG): PCG is a ~5% of the portfolio stake established this quarter at prices between $44 and $70 and the stock is now near the low end of that range at $39.83.Note: PG&E shares dropped sharply in December as they halted the dividend citing liability concerns from the October 2017 Northern California wildfires.Stake Decreases:Teva Pharmaceutical (TEVA): TEVA is a top three 12.60% portfolio position established last quarter at prices between $15.50 and $33.50. The stock currently trades at $18.52. There was a ~9% trimming this quarter.Wells Fargo (WFC): WFC is a fairly large ~6% of the US long portfolio position established in Q4 2013 at prices between $41 and $45.50. The position saw a ~20% increase in Q4 2016 at prices between $43.75 and $57.50. The stock currently trades at $58. There was a ~14% trimming this quarter.Colony NorthStar Inc. (CLNS): CLNS is a 1.88% of the 13F portfolio stake established in Q1 2016 at prices between $9.31 and $12.14 and increased by ~38% the following quarter at ~$10.60. The stock currently trades at $8.52. There was a ~55% selling over the last three quarters at prices between $11.41 and $14.70.Note: Northstar Asset Management, Northstar Realty Finance, and Colony Capital combined to form Colony NorthStar in a transaction that closed in January. NSAM shareholders received a special dividend of $1.16 per share following the close. The prices quoted above are adjusted for this.Barnes & Noble Education Inc. (BNED): BNED is a 1.81% of the portfolio stake. It was established as a result of the spinoff of BNED from Barnes & Noble: shareholders of Barnes & Noble received 0.632 shares of BNED for each share of BKS held. The position was more than doubled since at prices between $8.50 and $15.50. This quarter saw an about turn: ~25% sold at an average price of ~$8 per share. The stock currently trades at $6.43.Note: Regulatory filings since the quarter ended show them owning 6.24M shares (13.3% of business). This is compared to 6.54M shares in the 13F report.Stake Increases:O Reilly Automotive (ORLY) and Asbury Automotive (ABG): These two positions established last quarter saw minor increases this quarter. The ~7% ORLY stake was purchased at prices between $173 and $220 and it is now well above that range at $245. ABG is a 2.34% position established at prices between $50 and $62 and the stock currently trades at $67.90. ORLY & ABG stakes were increased by ~3% and ~9% respectively during the quarter.Quality Care Properties (QCP): QCP is a 2.36% portfolio stake established in Q4 2016 at prices between $12.50 and $17. The stock currently trades at $12.55. There was a marginal increase this quarter.Note 1: Regulatory filings since the quarter ended show them owning ~6M shares of QCP. This is compared to ~5M shares in the 13F. Their ownership stake is at 6.4% of the business.Note 2: The REIT is a spin-off from HCP Inc. (HCP) that started trading in October 2016.Keryx Pharmaceuticals (KERX): KERX is a small 1.52% of the portfolio position established in Q3 2015 at prices between $3.38 and $10.50. The stock currently trades at $4.64. There was a ~70% stake increase this quarter at an average price of ~$5 per share.Note: Seth Klarman (Baupost Group) has a huge ~43% ownership stake (assumes the dilution implied by convertible notes held) in KERX.Suburban Propane Partners (SPH): SPH is a small 1.23% portfolio stake established in Q2 2017 at prices between $22.75 and $27 and increased by ~75% last quarter at prices between $23.50 and $26. The stock is currently at $25.34. The position was more than doubled this quarter at prices between $23.20 and $26.70.Kept Steady:Western Union (WU): WU is Abrams’ largest stake at 13.83% of the US long portfolio (~4.2% of the business). The position was first purchased in Q4 2013 at prices between $16 and $19.50 and increased by ~23% in Q2 2014 at prices between $15.25 and $17.25. The stock currently trades at $19.75. For investors attempting to follow Abrams, WU is a good option to consider for further research.Franklin Resources (BEN): BEN is a top-three 11.59% of the 13F portfolio position established in Q4 2015 at prices between $35 and $42 and increased by ~50% the following quarter at prices between $31.50 and $39. The stock currently trades at $38.84.Altaba (AABA) previously Yahoo: AABA is a top-five 9.21% portfolio stake established in Q2 2017 at prices between $46 and $56 and the stock currently trades well above that range at $71.31.Willis Towers Watson plc (WLTW): WLTW is a fairly large 6% position purchased in Q1 2017 at prices between $117 and $133. The stock is now at $155.AMERCO (UHAL): UHAL is a ~5% 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. The stock is now at $352. For investors attempting to follow Abrams, UHAL is a good option to consider for further research.Och-Ziff Capital Management (OZM): OZM is a 1.87% portfolio stake established in Q2 2016 at prices between $3.30 and $4.35 and increased by ~11% in the following quarter at prices between $3.35 and $4.49. There was another ~11% increase in Q4 2016 at a cost-basis around $3.20. Q1 2017 also saw a ~17% increase at prices between $2.20 and $3.63. The stock is now at $2.37.Note: Abrams controls ~12% of the business.Global Eagle Entertainment (ENT): ENT is a very small 0.54% of the US long portfolio position first purchased in Q4 2013 at prices between $9 and $15.50 and increased by two-thirds in Q3 2014 at prices between $9.50 and $14. Q1 2017 saw a ~18% increase at prices between $2.92 and $6.79 and that was followed with another ~19% increase the following quarter at prices between $2.75 and $3.55. The stock currently trades below those ranges at $1.90.Note: Abrams controls 8.2% of the business.Group 1 Automotive (GPI): GPI is a very small 0.60% stake purchased last quarter at prices between $53 and $72 and the stock is now at $75.21.Clear Channel Outdoor Holdings (CCO): CCO is a very small 0.52% of the US long 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 $4.65.The spreadsheet below highlights changes to Abrams’ US stock holdings in Q4 2017:"