"Tracking David Abrams’ Abrams Capital Management Portfolio – Q1 2020 Update"
"David Abrams’ 13F portfolio value decreased this quarter from $3.22B to $2.54B. The number of positions increased from 21 to 22.Abrams Capital Management added Transdigm Group while dropping O’Reilly Automotive during the quarter.The top three positions are PG&E Corp, Allergan, and Teva Pharmaceutical, and they add up to ~26% 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 05/14/2020. Please visit our  article for an idea on his investment philosophy and our  for the fund's moves during Q4 2019.This quarter, Abrams’ 13F portfolio value decreased ~21% from $3.22B to $2.54B. The number of holdings increased from 21 to 22. The top three stakes are at ~26% of the 13F portfolio while the top five holdings are at ~41%. The largest position is Lithia Motors and it accounts for ~9% of the 13F portfolio.Stake Disposals:O Reilly Automotive (ORLY): A large ~7% ORLY stake was purchased in Q3 2017 at prices between $173 and $220. Q4 2018 saw a minor ~3% selling and that was followed with a ~13% trimming next quarter at prices between $335 and $392. Q2 2019 saw another ~30% selling at prices between $353 and $409. The entire position was disposed this quarter at prices between $261 and $441. The stock currently trades at ~$410. Abrams harvested gains.New Stakes:Transdigm Group (TDG) and Energy Transfer LP (ET): These are the two new positions this quarter. The large 6.80% TDG position was purchased at prices between $246 and $658 and the stock currently trades at $371. The 2.45% ET stake was established at prices between $4.55 and $13.75 and it is now at $7.81.Stake Decreases:Suburban Propane Partners (SPH): SPH is a 1.48% portfolio stake established in Q2 2017 at prices between $22.75 and $27 and increased by ~75% next quarter at prices between $23.50 and $26. The position was more than doubled in Q4 2017 at prices between $23.20 and $26.70 and that was followed with a ~87% increase over the next two quarters at prices between $22 and $27. The stock is currently well below the low end of those ranges at $13.83. This quarter saw a ~11% trimming.Stake Increases:Facebook (FB): FB is a large (top five) ~8% portfolio position purchased in Q4 2018 at prices between $124 and $163 and the stock currently trades well above that range at ~$213. This quarter saw a ~18% stake increase at prices between $146 and $223.Alphabet Inc. (GOOG): GOOG is a ~7% position purchased in Q2 2018 at prices between $1005 and $1175 and the stock is now well above that range at $1384. There was a ~20% stake increase this quarter at prices between $1057 and $1527.Kinder Morgan (KMI): KMI is a 5.37% of the portfolio position purchased in Q1 2018 at prices between $14.75 and $19.75 and the stock is currently at $15.49. This quarter saw a ~15% stake increase at prices between $10 and $22.25.Asbury Automotive (ABG): ABG is a 4.60% 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 $70.61. This quarter also saw a ~11% stake increase at an average cost in the high 40s.Note: Their ownership stake in the business is ~11%.O-I Glass (OI) previously Owens-Illinois: OI is a 1.94% of the portfolio stake established last quarter at prices between $8.50 and $12 and increased by ~42% this quarter at prices between $4.64 and $15. The stock currently trades at $7.17.Kept Steady:PG&E Corp (PCG): PCG is now the largest position at 8.85% of the portfolio. It was purchased at ~$7 per share and it currently goes for $12.27. PG&E share price dropped sharply in mid-January as they announced plans to file for bankruptcy. Abrams along with two other hedge funds stepped in and bought 45M shares near the lows.Allergan plc (AGN) and Bristol Myers Squibb (BMY) Rights: These two positions were established last quarter. The large 8.63% AGN position was a merger-arbitrage stake. AbbVie (ABBV) acquired Allergan in a cash-and-stock ($120 cash and 1 share of ABBV for each AGN held) and the transaction closed earlier this month. BMY Rights (BMY.RT) is a 3.47% position that came about as a result of the acquisition of Celgene. Terms called for CELG shareholders to receive $50 cash, 1 share of 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. The BMY position was sold and the Rights were increased substantially last quarter. It currently trades at ~$3.Teva Pharmaceutical (TEVA): TEVA is currently a top three 8.50% of the portfolio stake. It was 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 $11.77.Willis Towers Watson plc (WLTW): WLTW is a large 7.31% position purchased in Q1 2017 at prices between $117 and $133. The stock is now well above that range at ~$205. There was a ~6% trimming in Q4 2018 and that was followed with marginal trimming last quarter.Lithia Motors (LAD): LAD is a ~7% of the portfolio position established in Q2 2018 at prices between $95 and $105 and almost doubled next quarter at prices between $81 and $99. The stock is now at ~$116. Q4 2018 also saw a ~15% stake increase. Last quarter saw a ~3% trimming.Note: Their ownership stake in Lithia Motors is at ~10%.AMERCO (UHAL): UHAL is a 6.42% 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 ~$298.Franklin Resources (BEN): BEN is a large 6.38% 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 well below the low end of those ranges at $18.34.  For investors attempting to follow, BEN is a good option to consider for further research.Akebia Therapeutics (AKBA): AKBA was a 0.74% 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. AKBA currently trades at $12.10 and the stake is at 1.69% of the portfolio.Note: Their ownership stake in Akebia is at ~5%.TransMedics Group (TMDX): TMDX is a 1.66% of the 13F portfolio stake that came about as a result of its IPO last May. Abrams was an early investor who led funding rounds going back to 2012. The stock started trading at ~$25 and currently goes for $16.53. Abrams has a ~17% ownership stake in the business.Camping World Holdings (CWH): CWH is a 1.37% 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. Last quarter saw a ~12% stake increase at ~$7.90 per share. The stock is now at $17.81. Abrams controls ~16% of the business.Sculptor Capital (SCU) previously Och-Ziff Capital Management: SCU is a 1.10% 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 ~11% increase in Q4 2016 at a cost-basis around $32. Q1 2017 also saw a ~17% increase at prices between $22 and $36.30. The stock is now at $11.11. Last quarter saw a ~7% trimming.Note: The prices quoted above are adjusted for the 1 for 10 reverse stock-split in January. Abrams has a ~10% stake in the business.Pacific Drilling SA (PACD): The 0.13% PACD stake got established in Q4 2018 as the company emerged from Chapter 11 bankruptcy last November. The stock is now at $0.46. Abrams Capital’s ownership stake in Pacific Drilling is ~10%. They had ~$200M in Pacific Drilling debt when the company filed for bankruptcy in November 2017.Clear Channel Outdoor Holdings (CCO): CCO is a very small 0.08% 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 $0.94.The spreadsheet below highlights changes to Abrams’ 13F stock holdings in Q1 2020:Regulatory filings thru 2/20/2020: 13G – 2/13 – TMDX - ~3.5M shares – 16.54% of business. BNED – 0, ENT – 0, LAD – 2.23M shares – 9.83% of business, CWH – 6.11M shares – 16.34% of business, PACD – 7.41M shares – 9.89% of business, CCO – 3.35M shares – 0.72% of business, SCU – 2.06M shares – 9.9% of business. Form 4 12/31 – 165K shares purchased at $21.15, 13D/A – 1/23, 12/27, 12/17, 12/11 – PCG – Restructuring Support Agreement related, ."