"Tracking David Abrams’ Abrams Capital Management Portfolio – Q3 2015 Update"
"David Abrams’ 13F portfolio decreased ~5% this quarter from $1.47B to $1.40B. The number of positions increased from 12 to 14.Abrams Capital Management added Manitowoc, Cleco, and Keryx Pharmaceuticals during the quarter.The top-three positions are Western Union, Microsoft Corporation, and Wells Fargo and they add up to ~55% 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 11/13/2015. Please visit our  article for an idea on his investment philosophy and our  for the fund's moves during Q2 2015.This quarter, Abrams’ US long portfolio decreased 5.15% from $1.47B to $1.40B. The number of holdings increased from 12 to 14: Barnes & Noble Education, Cleco Corporation, Keryx Pharmaceuticals, and Manitowoc replaced DIRECTV and Wendy’s. The top three stakes are at 54.35% of the 13F portfolio while the top five holdings are at just over two-thirds. The largest position by far is Western Union and it accounts for 28.40% of the US long portfolio.Stake Disposals:DIRECTV (DTV): A 3.14% DTV position was established in Q4 2014 at prices between $83.55 and $87.72. It was doubled in Q1 2015 at prices between $84.57 and $89 and increased by another ~22% last quarter at prices between $85 and $94. 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.Wendy’s (WEN): WEN is a 3.25% of the US long portfolio established last quarter at prices between $10.12 and $11.58 and eliminated this quarter at prices between $8.56 and $11.28. The stock currently trades at $9.43.New Stakes:Barnes & Noble Education Inc. (BNED): BNED is a new 6.50% 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. After close of the transaction, the position was more than doubled to 7.15M shares at prices between $11.80 and $14.93. The stock currently trades at $13.55.Note 1: An October 26th regulatory Form 4 filing indicates Abrams has further increased the stake to ~7.6M shares (15.77% of the business).Cleco Corporation (CNL): CNL is a medium-sized 4.57% of the portfolio stake established this quarter at around $54. The stock currently trades at $48.90.Keryx Pharmaceuticals (KERX): KERX is a small 1.26% of the portfolio position established this quarter at prices between $3.38 and $10.31. The stock currently trades at $5.07.Note: Seth Klarman (Baupost Group) has a ~25% business stake in Keryx Pharmaceuticals. Keryx had a $125M capital raise last month in a private placement transaction with Baupost (zero-coupon convertible notes due 2020 with $3.74 conversion price). The implied dilution would take Klarman’s ownership to ~43% of the business.Manitowoc Company Inc. (MTW): MTW is a 5.38% of the portfolio position established this quarter at prices between $14.57 and $19.60. The stock currently trades at $15.56. For investors attempting to follow Abrams, MTW is a good option to consider for further research.Note: Manitowoc has seen recent activist involvement. Carl Icahn reached an agreement with Manitowoc in February whereby he got a board seat. Also, Manitowoc’s Cranes and Food Services businesses will be separated in a spinoff.Stake Decreases: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. This quarter saw a ~10% trimming at prices between $34.56 and $39.75. The stock currently trades at $39.12.Stake Increases:Barnes & Noble Inc. (BKS): BKS is a large (top-five) 6% 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. Last two quarters have also seen a combined two-thirds increase. Overall, his cost-basis is at around $10 after adjusting for the Barnes & Noble Education spin-off transaction that closed in July.VimpelCom Ltd. (VIP): VIP is a 3% of the US long portfolio position established in Q1 2015 at prices between $3.43 and $5.61 and increased by ~69% last quarter at prices between $4.95 and $6.37. This quarter saw a stake doubling at prices between $4.09 and $5.97. The stock currently trades below his purchase price ranges at $3.37.Kept Steady:Clear Channel Outdoor Holdings (CCO): CCO is a 1.71% 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 $5.96.Global Eagle Entertainment (ENT): ENT is a 4.11% 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 $10.30. Abrams controls 6.48% of the business.InterXion Holding NV (INXN): INXN is a 4.55% 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 outside those ranges at $29.22. 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 the second-largest stake at 15.78% of the US long portfolio. It was established in Q1 2014 at prices between $36 and $40.30 and increased by ~45% in Q3 2014 at prices between $42.74 and $47.52. The stock currently trades at $52.84.MoneyGram International Inc. (MGI): MGI is a 2.94% of the US long portfolio position established in Q4 2014 at prices between $8.15 and $12.93. It was increased by ~89% in Q1 2015 at prices between $7.93 and $9.44 and another ~17% last quarter at prices between $7.75 and $10.61. The stock currently trades at $8.69. 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.Wells Fargo (WFC): WFC is a top-three 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 $54.56.Western Union (WU): WU is Abrams’ largest stake at 28.40% 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 $18.55.The spreadsheet below highlights changes to Abrams’ US stock holdings in Q3 2015:Note: 8/13/2015  - Barnes & Noble (BKS) - On August 3rd - 5.45M shares - 11.30% of business."