"Tracking David Abrams’ Abrams Capital Management Portfolio – Q2 2021 Update"
"David Abrams’ 13F portfolio value increased marginally this quarter from $4.44B to $4.50B. The number of positions remained steady at 16.Abrams Capital Management increased Change Healthcare during the quarter.The top three positions are Lithia Motors, Facebook, and Asbury Automotive Group and they add up to ~35% 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 08/13/2021. Please visit our  article for an idea on his investment philosophy and our  for the fund's moves during Q1 2021.This quarter, Abrams’ 13F portfolio value increased from $4.44B to $4.50B. The number of holdings remained steady at 16. The top three stakes are at ~35% of the 13F portfolio while the top five holdings are at ~51%. The largest position is Lithia Motors and it accounts for ~18% of the 13F portfolio.Stake Disposals:None.New Stakes:None.Stake Decreases:PG&E Corp (PCG): The PCG stake is now a 4.79% 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 $9.11. Last three quarters have seen a combined ~15% trimming.Stake Increases:Change Healthcare (CHNG): CHNG is a large 7.14% of the portfolio position established last quarter at prices between ~$18 and ~$24 and the stock currently trades at $21.69. This quarter saw a ~13% stake increase.Note: Regulatory filings since the quarter ended show them owning 16.75M shares (5.4% of the business) of Change Healthcare. This is compared to 13.94M shares in the 13F report.Kept Steady:Lithia Motors (LAD): LAD is currently the largest position at ~18% 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 ~$336. Q4 2020 saw a ~6% increase.Note: Their ownership stake in Lithia Motors is at ~9%.Facebook (FB): FB is a large (top three) 9.31% portfolio position purchased in Q4 2018 at prices between $124 and $163 and the stock currently trades at ~$363. Q1 2020 saw a ~18% stake increase at prices between $146 and $223.Asbury Automotive (ABG): ABG is a ~8% 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 ~$189. 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%.Alphabet Inc. (GOOG): GOOG is a 7.95% position purchased in Q2 2018 at prices between $1005 and $1175 and the stock is now at ~$2822. There was a ~20% stake increase in Q1 2020 at prices between $1057 and $1527.TransDigm Group (TDG): The large (top five) 7.76% TDG position was purchased in Q1 2020 at prices between $246 and $658 and the stock currently trades at ~$603.AMERCO (UHAL): UHAL is a 7.35% 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 ~$648.Willis Towers Watson plc (WLTW): WLTW is a large 5.59% position purchased in Q1 2017 at prices between $117 and $133. The stock is now at ~$218. There was a ~6% trimming in Q4 2018 and since then the activity has been minor.Note: Aon plc (AON) was to acquire Willis Towers Watson plc in an all-stock deal (1.08 shares of Aon for each share held) announced last March. The deal fell through last month following monopoly concerns raised by regulators.Teva Pharmaceutical (TEVA): TEVA is a large 5.29% 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 $9.38.Energy Transfer LP (ET): The 5.23% ET stake was established in Q1 2020 at prices between $4.55 and $13.75 and it is now at $9.21. There was a ~64% stake increase in Q3 2020 at prices between $5.40 and $7.15.Kinder Morgan (KMI): KMI is a ~5% 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 $16.28.Camping World Holdings (CWH): CWH is a 4.65% 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 $37.26. They control ~12% of the business.O-I Glass (OI) previously Owens-Illinois: OI is a 2.52% 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 $14.58.Nuvation Bio (NUVB), and Cantaloupe Inc. (CTLP) previously USA Technologies: These two positions established last quarter were kept steady this quarter. 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 $9.32 and the stake is at 0.79% of the portfolio. The very small 0.55% CTLP position was purchased at prices between ~$9.45 and ~$12.45 and it is now at $10.14.The spreadsheet below highlights changes to Abrams’ 13F stock holdings in Q2 2021:Source: John Vincent. Data constructed from Abrams Capital Management’s 13F filings for Q1 2021 and Q2 2021.Regulatory filings from 2/19/2021 thru 6/3/2021: Form 4 – 4/13 – ABG – minor – ~2.12M shares."