"Tracking David Abrams’ Abrams Capital Management Portfolio – Q2 2015 Update"
"David Abrams’ 13F portfolio increased ~10% this quarter from $1.34B to $1.47B. The number of positions remained steady at 12.Abrams Capital Management significantly increased Barnes & Noble and DIRECTV stakes during the quarter.The top-three positions are Western Union, Microsoft Corporation, and DIRECTV and they add up to ~56 % 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 08/13/2015. Please visit our  article for an idea on his investment philosophy and the fund's moves during Q1 2015.This quarter, Abrams’ US long portfolio increased 9.54% from $1.34B to $1.47B. The number of holdings remained steady at 12: CST Brands was eliminated while adding Wendy’s. The top three stakes are at 55.55% of the 13F portfolio while the top five holdings are at ~75%. The largest position by far is Western Union and it accounts for ~30% of the US long portfolio.Stake Disposals:CST Brands Inc. (CST): CST was a medium-sized 8% of the US long portfolio stake as of Q3 2014. It was reduced by ~29% in Q4 2014 at prices between $33.35 and $44 and another ~70% last quarter at prices between $40.79 and $45. This quarter, the remaining stake was eliminated at prices between $39 and $45. The original position was from Q4 2013 when 3M shares were purchased at prices between $30 and $36. Q3 2014 saw a ~25% increase at prices between $33 and $36.46. The stock currently trades at $35.62.Note: CST is a spin-off from Valero Energy (VLO) that started trading in May 2013 at $29 per share.New Stakes:Wendy’s (WEN): WEN is a 3.25% of the US long portfolio established this quarter at prices between $10.12 and $11.58. The stock currently trades at $9.94.Note: Nelson Peltz (Trian) has a huge long-term position (2005) in WEN.Stake Decreases:None.Stake Increases:Barnes & Noble Inc. (BKS): BKS is a large (top-five) 9.02% 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. The position had since been kept steady. This quarter saw a ~24% increase.Note 1: In February, BKS announced plans to spin-off its college books unit as Barnes & Noble Education (BNED). On August 2nd, BKS shareholders received 0.632 shares of BNED for each share of BKS held.Note 2: An August 13th regulatory filing showed Abrams owning 5.45M shares (11.30% of the business).DIRECTV (DTV): A 3.14% DTV position was established in Q4 2014 at prices between $83.55 and $87.72. It was doubled last quarter at prices between $84.57 and $89 and increased by another ~22% this quarter at prices between $85 and $94.Note: DTV was a merger-arbitrage stake. In May 2014, AT&T (T) agreed to acquire DTV in a cash-and-stock deal valued at $95 per share ($28.50 cash and the rest in stock protected by a collar) and that transaction closed in July.MoneyGram International Inc. (MGI): MGI is a 3.20% of the US long portfolio position established in Q4 2014 at prices between $8.15 and $12.93. It was increased by ~89% last quarter at prices between $7.93 and $9.44 and another ~17% this quarter at prices between $7.75 and $10.61. The stock currently trades at $9.95. Abrams controls ~10% of the business.Note: MGI is the second-largest money transfer business in the world after Western Union. Abrams’ largest 13F position is Western Union.VimpelCom Ltd. (VIP): VIP is a small 1.69% of the US long portfolio position established last quarter at prices between $3.43 and $5.61 and increased by ~69% this quarter at prices between $4.95 and $6.37. The stock currently trades at $5.43.Kept Steady:Clear Channel Outdoor Holdings (CCO): CCO is a 2.31% 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 $8.77.Global Eagle Entertainment (ENT): ENT is a 4.42% 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 at $12.08. Abrams controls 6.48% of the business.InterXion Holding NV (INXN): INXN is a 4.41% 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 at $28.58. Abrams controls 3.4% of the business.Note: In February 2015, TeleCity Group plc agreed to merge with InterXion in an all-stock deal but in May Equinix (EQIX) confirmed they will acquire TCY.Microsoft Corporation (MSFT): MSFT is a large 14.93% of the US long portfolio stake established in Q1 2014 at prices between $36 and $40.30. It was increased by ~45% in Q3 2014 at prices between $42.74 and $47.52. The stock currently trades at $46.71.Opus Bank Irvine (OPB): OPB is a 5.58% 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. The stock currently trades at $37.84.Wells Fargo (WFC): WFC is a large (top-five) 10.58% of the US long portfolio position established in Q4 2013 at prices between $41.30 and $45.50. The stock currently trades well outside that range at $57.24.Western Union (WU): WU is Abrams’ largest stake at 29.82% 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 $20.44.The spreadsheet below highlights changes to Abrams’ US stock holdings in Q2 2015:Note: 8/13/2015  - Barnes & Noble (BKS) - On August 3rd - 5.45M shares - 11.30% of business."