"Tracking David Abrams’ Abrams Capital Management Portfolio – Q1 2018 Update"
"David Abrams’ 13F portfolio value increased this quarter from $2.97B to $3.19B. The number of positions remained steady at 20.Abrams Capital Management added Aetna & Kinder Morgan while dropping Wells Fargo & Colony Northstar.The top three positions are Western Union, Teva Pharmaceutical, and Time Warner 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 05/11/2018. Please visit our  article for an idea on his investment philosophy and our  for the fund's moves during Q4 2017.This quarter, Abrams’ 13F portfolio value increased 7.38% from $2.97B to $3.19B. The number of holdings remained steady at 20. The top three stakes are at one-third of the 13F portfolio while the top five holdings are at ~50%. The largest position is Western Union and it accounts for ~13% of the 13F portfolio.Stake Disposals:Wells Fargo (WFC): WFC was a fairly large ~6% of the 13F portfolio position established in Q4 2013 at prices between $41 and $45.50. The stake saw a ~20% increase in Q4 2016 at prices between $43.75 and $57.50. There was a ~14% trimming last quarter and the disposal this quarter was at prices between $51 and $66.  The stock currently trades at $54.48.Colony NorthStar Inc. (CLNS): CLNS was a ~2% 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. There was a ~55% selling over the last three quarters at prices between $11.41 and $14.70 and the elimination this quarter was at prices between $5.50 and $11.50. The stock currently trades at $6.05.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.New Stakes:Aetna Inc. (AET): AET is a large 7.31% of the portfolio stake established at prices between $168 and $194 and the stock currently trades at ~$178.Kinder Morgan (KMI): KMI is a ~4% of the portfolio position purchased this quarter at prices between $14.75 and $19.75 and the stock is currently at $16.64.Stake Decreases:Barnes & Noble Education Inc. (BNED): BNED is a 1.32% 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. Last quarter saw an about turn: ~25% sold at an average price of ~$8 per share. The stock currently trades at $6.17. There was a ~7% trimming this quarter.Note: Regulatory filings since the quarter ended show them owning 6.07M shares (~13% of business). This is compared to 6.11M shares in the 13F report. The minor reduction was at ~$7.50 per share.Stake Increases:Time Warner Inc. (TWX): TWX is large (top three) ~10% of the portfolio position established last quarter at prices between $87 and $104 and increased by ~12% this quarter at prices between $91 and $97. The stock is currently at $94.38.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 in Q3 2017 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 5.39% of the portfolio stake established last quarter at prices between $44 and $70 and increased by ~20% this quarter at prices between $38.50 and $45.50. The stock is now at $43.23.Note: PG&E shares dropped sharply in December as they halted the dividend citing liability concerns from the October 2017 Northern California wildfires.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 and that was followed with a ~25% increase this quarter at prices between $328 and $384. The stock is now at ~$344. For investors attempting to follow Abrams, UHAL is a good option to consider for further research.Quality Care Properties (QCP): QCP is a 4.26% portfolio stake established in Q4 2016 at prices between $12.50 and $17. The stock currently trades at $20.98. There was a ~38% stake increase this quarter at prices between $12.25 and $20.Note: Abrams Capital owns ~7.4% of the outstanding shares of QCP. The REIT is a spin-off from HCP Inc. (HCP) that started trading in October 2016.Suburban Propane Partners (SPH): SPH is a small 1.37% 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 stock is currently at $23.07. The position was more than doubled last quarter at prices between $23.20 and $26.70 and that was followed with a one-third increase this quarter at prices between $22 and $26.50.Group 1 Automotive (GPI): GPI is a small ~1% stake purchased in Q3 2017 at prices between $53 and $72 and doubled this quarter at prices between $62.50 and $82.50. The stock is now at $69.42.Kept Steady:Western Union (WU): WU is Abrams’ largest stake at ~13% of the 13F 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.Teva Pharmaceutical (TEVA): TEVA is a top three 10.58% portfolio position established in Q3 2017 at prices between $15.50 and $33.50. The stock currently trades at $20.38. There was a ~9% trimming last quarter.Altaba (AABA) previously Yahoo: AABA is a top-five ~9% portfolio stake established in Q2 2017 at prices between $46 and $56 and the stock currently trades well above that range at $76.74.Franklin Resources (BEN): BEN is a top-five ~9% 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 $33.70.  For investors attempting to follow, BEN is a good option to consider for further research.O Reilly Automotive (ORLY) and Asbury Automotive (ABG): These two positions were established in Q3 2017. The ~7% ORLY stake was purchased at prices between $173 and $220 and it is now well above that range at ~$273. ABG is a 2.30% position established at prices between $50 and $62 and the stock currently trades well above that at $70.40.Note: Abrams Capital owns 5.2% of the outstanding shares of Asbury Automotive.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 ~$154.Och-Ziff Capital Management (OZM): OZM is a 1.86% 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 $2.06.Note: Abrams controls ~12% of the business.Keryx Pharmaceuticals (KERX): KERX is a small 1.25% of the portfolio position established in Q3 2015 at prices between $3.38 and $10.50. The stock currently trades at $5.68. There was a ~70% stake increase last quarter at an average price of ~$5 per share.Note: Abrams Capital owns 8.2% of the outstanding shares of Keryx.Clear Channel Outdoor Holdings (CCO): CCO is a very small 0.52% 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 $4.70.Global Eagle Entertainment (ENT): ENT is a very small 0.32% of the 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 at $1.09.Note: Abrams controls ~8% of the business.The spreadsheet below highlights changes to Abrams’ 13F stock holdings in Q1 2018:Note: Lookup Abrams Capital Management, LP for 13F and Abrams Capital, LLC for other regulatory filings. A reader pointed out the KERX increase on November 10th (5.7M shares to 7.65M shares – 6.42% of business @ $4.80) which was missed in my Q3 2017 update.  5/14/2018 Update: That appears a one-time filing and so probably was mistakenly filed there…Regulatory Filings thru 02/14/2018: 13G/A – 2/9/2018 – QCP – 6.03M shares, Form 4 – 1/3/2018 – BNED – 6.24M shares – 13.3% of business - ~350K shares disposed at ~$8.3, Form 4 – 12/28/2017 – 130K shares disposed at ~$8.5. Form 4 – 12/21/2017 - ~50K shares disposed at $9.01, 12/18/2017 - ~240K shares disposed at ~$8.4, ~720K shares disposed at ~$8.2, 12/8/2017 – 1.03M shares disposed at ~$7.8."