"Tracking David Abrams’ Abrams Capital Management Portfolio – Q4 2015 Update"
"David Abrams’ 13F portfolio increased ~31% this quarter from $1.40B to $1.83B. The number of positions increased from 14 to 16.Abrams Capital Management added Franklin Resources and Time Warner Cable while increasing Manitowoc, Cleco, and VimpelCom during the quarter.The top-three positions are Western Union, Microsoft Corporation, and Franklin Resources and they add up to ~47% of the portfolio.This article is part of a series that provides an ongoing analysis of the changes made to David Abrams’ US stock portfolio on a quarterly basis. It is based on Abrams’ regulatory  filed on 02/12/2016. Please visit our  article for an idea on his investment philosophy and our  for the fund's moves during Q3 2015.This quarter, Abrams’ US long portfolio increased 30.91% from $1.40B to $1.83B. The number of holdings increased from 14 to 16: Franklin Resources and Time Warner Cable were newly added. The top three stakes are at 46.89% of the 13F portfolio while the top five holdings are at 61.86%. The largest position by far is Western Union and it accounts for 21.16% of the US long portfolio.Stake Disposals:None.New Stakes:Franklin Resources (BEN): BEN is a large (top-three) 10.62% of the 13F portfolio position established this quarter at prices between $35 and $42. The stock currently trades below that range at $32.32. For investors attempting to follow Abrams, BEN is a good option to consider for further research.Time Warner Cable (TWC): The 6.71% stake in TWC was purchased this quarter at prices between $179 and $192 and the stock is now at $185.Note: Time Warner Cable is being acquired by Charter Communications (CHTR). In May 2015, CHTR offered a cash-and-stock deal valued at $195 per share ($100 cash).Stake Decreases:Opus Bank Irvine (OPB): OPB is a 3.23% of the US long portfolio position. It had an IPO in April 2014 at $30 per share. Prior to the IPO, Abrams had an ownership stake of just below 10% in the business and that got converted into equity. Last quarter saw a ~10% trimming at prices between $34.56 and $39.75 and that was followed with a ~22% reduction this quarter at prices between $36 and $40. The stock currently trades at $30.33.Stake Increases:Barnes & Noble Inc. (BKS): BKS is a 3.53% of the US long portfolio position. The stake was established in Q1 2014 and almost doubled the following quarter in the mid-teens price-range. Last three quarters have also seen a combined ~80% increase. Overall, his cost-basis is at around $10 after adjusting for the Barnes & Noble Education spin-off transaction that closed in July 2015. The stock is now at $8.35.Note: A regulatory Form 4 filing on 02/08/2016 shows the ownership stake at 10.42M shares (13.63% of the business). This is compared to 7.4M shares in the 13F.Barnes & Noble Education Inc. (BNED): BNED is a 4.47% 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. After close of the transaction, the position was more than doubled to 7.15M shares at prices between $11.80 and $14.93. This quarter saw a further ~15% increase at prices between $8.70 and $15.27. The stock currently trades at $9.95.Note 1: A regulatory 13G/A filing on 01/14/2016 shows the ownership stake at 8.76M shares (18.16% of the business). This is compared to 8.22M shares in the 13F.Cleco Corporation (CNL): CNL is a fairly large 6.74% of the portfolio stake established last quarter at around $54. This quarter saw a ~97% increase at prices between $48.50 and $53.74. The stock currently trades at $53.67.Keryx Pharmaceuticals (KERX): KERX is a small 1.52% of the portfolio position established last quarter at prices between $3.38 and $10.31. The stock currently trades at $3.42. This quarter saw a ~10% increase.Note 1: A regulatory 13G filing on 02/12/2016 shows Abrams owning 5.6M shares (5.32% of the business). This is compared to 5.5M shares in the 13F.Note 2: Seth Klarman (Baupost Group) has a ~25% business stake in Keryx Pharmaceuticals. Keryx had a $125M capital raise in October 2015 in a private placement transaction with Baupost (zero-coupon convertible notes due 2020 with $3.74 conversion price). The implied dilution would take Klarman’s ownership to ~43%.Manitowoc Company Inc. (MTW): MTW is a 6.06% of the portfolio position established last quarter at prices between $14.57 and $19.60. This quarter saw a ~44% increase at prices between $14.15 and $17.36. The stock currently trades at $14.97. For investors attempting to follow Abrams, MTW is a good option to consider for further research.Note 1: A regulatory 13G/A filing on 01/22/2016 shows Abrams owning 8.74M shares (6.4% of the business). This is compared to 7.23M shares in the 13F.Note 2: Manitowoc has seen recent activist involvement. Carl Icahn reached an agreement with Manitowoc in February 2015 whereby he got a board seat. Also, Manitowoc’s Cranes and Food Services businesses will be separated in a spinoff.VimpelCom Ltd. (VIP): VIP is a 3.26% of the US long portfolio position established in Q1 2015 at prices between $3.43 and $5.61 and increased by ~69% the following quarter at prices between $4.95 and $6.37. Last quarter saw a stake doubling at prices between $4.09 and $5.97 and that was followed with a 78% increase this quarter at prices between $3.01 and $4.30. The stock currently trades near the low end of his purchase price ranges at $3.41.Kept Steady:Clear Channel Outdoor Holdings (CCO): CCO is a 1.03% 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 $3.55.Global Eagle Entertainment (ENT): ENT is a 2.70% of the US long portfolio position first purchased in Q4 2013 at prices between $9.12 and $15.66 and increased by two-thirds in Q3 2014 at prices between $9.60 and $13.75. The stock currently trades near the low end of his purchase price ranges at $9.28. Abrams controls 6.48% of the business.InterXion Holding NV (INXN): INXN is a 3.87% of the US long portfolio position established in Q3 2014 at prices between $26.58 and $29.01. It was increased by ~190% in Q4 2014 at prices between $24.97 and $28.60. The stock currently trades just outside those ranges at $29.67. Abrams controls 3.4% of the business.Microsoft Corporation (MSFT): MSFT is the second-largest stake at 15.11% of the US long portfolio. It was established in Q1 2014 at prices between $36 and $40.30 and increased by ~45% in Q3 2014 at prices between $42.74 and $47.52. The stock currently trades at $50.48.MoneyGram International Inc. (MGI): MGI is a 1.76% of the US long portfolio position established in Q4 2014 at prices between $8.15 and $12.93. It was increased by ~89% in Q1 2015 at prices between $7.93 and $9.44 and another ~17% the following quarter at prices between $7.75 and $10.61. The stock currently trades at $5.63. Abrams controls 9.64% of the business.Wells Fargo (WFC): WFC is a top-five 8.23% of the US long portfolio position established in Q4 2013 at prices between $41.30 and $45.50. The stock currently trades at $47.31.Western Union (WU): WU is Abrams’ largest stake at 21.16% of the US long portfolio (~4.2% of the business). The position was first purchased in Q4 2013 at prices between $16.37 and $19.29 and increased by ~23% in Q2 2014 at prices between $15.25 and $17.25. The stock currently trades at $17.55.The spreadsheet below highlights changes to Abrams’ US stock holdings in Q4 2015:"