"Tracking David Abrams’ Abrams Capital Management Portfolio – Q1 2021 Update"
"David Abrams’ 13F portfolio value increased ~25% this quarter from $3.55B to $4.44B. The number of positions decreased from 17 to 16.Abrams Capital Management added Change Healthcare while dropping TransMedics Group during the quarter.The top three positions are Lithia Motors, Asbury Automotive Group, and Facebook, 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 05/14/2021. Please visit our  article for an idea on his investment philosophy and our  for the fund's moves during Q4 2020.This quarter, Abrams’ 13F portfolio value increased from $3.55B to $4.44B. The number of holdings decreased from 17 to 16. The top three stakes are at ~38% of the 13F portfolio while the top five holdings are at ~53%. The largest position is Lithia Motors and it accounts for ~21% of the 13F portfolio.Stake Disposals:TransMedics Group (TMDX): TMDX was a ~2% 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 position was disposed this quarter in the low-30s price range. The stock started trading at ~$25 and currently goes for $25.33.Clear Channel Outdoor Holdings (CCO): CCO was a very small 0.16% of the 13F portfolio stake. It was a very long-term position that has been in the portfolio since 2009. The stake had 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 position was disposed this quarter at prices between ~$1.40 and ~$2.22. The stock currently trades at $2.29.Sculptor Capital (SCU) previously Och-Ziff Capital Management: SCU was 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 in Q3 2020 at prices between ~$10.50 and ~$14.50. Last quarter saw another two-thirds selling at prices between ~$10.50 and ~$16. The remainder stake was disposed this quarter. The stock is now at $25.45.Note: The prices quoted above are adjusted for the 1 for 10 reverse stock-split in January 2019.Bristol Myers Squibb (BMY) Rights: It was 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. Q3 2020 saw a one-third reduction in the Rights while last quarter there was a two-thirds increase. In January, the Rights terminated automatically as one of the milestones was not met.New Stakes:Change Healthcare (CHNG), Nuvation Bio (NUVB), and Cantaloupe Inc. (CTLP) previously USA Technologies: These are the new positions this quarter. CHNG is a large ~6% of the portfolio position established this quarter at prices between ~$18 and ~$24 and the stock currently trades at $23.64. Panacea Acquisition merged with Nuvation Bio in a de-SPAC transaction that closed in February.  The stock traded between ~$9 and ~$14.60 during the quarter. It currently trades at $13.43 and the stake is at 0.77% of the portfolio. The very small 0.50% CTLP position was purchased at prices between ~$9.45 and ~$12.45 and it is now at $12.30.Stake Decreases:PG&E Corp (PCG): The PCG stake is now a ~6% of the portfolio position. PG&E share 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. Their cost-basis is ~$7 per share and the stock is currently at $10.43. There was minor trimming over the last few quarters.Stake Increases:None.Kept Steady:Lithia Motors (LAD): LAD is currently the largest position at ~21% 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 holding period and is now at ~$338. Last quarter saw a ~6% increase.Note: Their ownership stake in Lithia Motors is at ~9%.Asbury Automotive (ABG): ABG is a 9.37% 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 ~$190. 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%.Facebook (FB): FB is a large (top three) ~8% portfolio position purchased in Q4 2018 at prices between $124 and $163 and the stock currently trades at ~$326. Q1 2020 saw a ~18% stake increase at prices between $146 and $223.AMERCO (UHAL): UHAL is a 7.74% 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 ~$569.TransDigm Group (TDG): The large (top three) 7.14% TDG position was purchased in Q1 2020 at prices between $246 and $658 and the stock currently trades at ~$661.Alphabet Inc. (GOOG): GOOG is a 6.80% position purchased in Q2 2018 at prices between $1005 and $1175 and the stock is now well above that range at ~$2405. There was a ~20% stake increase in Q1 2020 at prices between $1057 and $1527.Teva Pharmaceutical (TEVA): TEVA is a large 6.25% 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 $10.57.Willis Towers Watson plc (WLTW): WLTW is a large 5.64% position purchased in Q1 2017 at prices between $117 and $133. The stock is now well above that range at ~$259. 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 last March.Kinder Morgan (KMI): KMI is a 4.68% 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 $18.77.Camping World Holdings (CWH): CWH is a 4.18% 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 $41.05. They control ~12% of the business.Energy Transfer LP (ET): The 3.83% ET stake was established in Q1 2020 at prices between $4.55 and $13.75 and it is now at $10.49. There was a ~64% stake increase in Q3 2020 at prices between $5.40 and $7.15.O-I Glass (OI) previously Owens-Illinois: OI is a 2.30% 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 $19.16.The spreadsheet below highlights changes to Abrams’ 13F stock holdings in Q1 2021:Source: John Vincent. Data constructed from Abrams Capital Management’s 13F filings for Q4 2020 and Q1 2021.Regulatory filings thru 2/18/2021: 13G/A – 2/16 – TMDX - 1.3M shares – 4.8% of business, Form 4 & 13G – 2/10 – ~875K shares disposed at ~$32 – 2.62M shares remain – 9.66% of business. 13 G/As – 2/12 – CWH – 5.11M shares – 11.95% of business, PACD – zero, LAD – 2.35M shares – 9% of business,"