"Tracking David Abrams’ Abrams Capital Management Portfolio – Q4 2016 Update"
"David Abrams’ 13F portfolio increased this quarter from $2.01B to $2.72B. The number of positions increased from 16 to 19.Abrams Capital Management increased Och-Ziff Capital Management and Wells Fargo during the quarter.  Also added 5 new stakes.The top three positions are Western Union, Franklin Resources, and Microsoft Corporation and they add up to ~40% 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 02/10/2017. Please visit our  article for an idea on his investment philosophy and our  for the fund's moves during Q3 2016.This quarter, Abrams’ US long portfolio increased 35.19% from $2.01B to $2.72B. The number of holdings increased from 16 to 19. The top three stakes are at 40.13% of the 13F portfolio while the top five holdings are at 58.93%. The largest position by far is Western Union and it accounts for 17.23% of the US long portfolio.Stake Disposals:Northstar Realty Finance Corp. (NRF): NRF was a ~2% portfolio position purchased in Q1 2016 at prices between $8.57 and $17. It was disposed of this quarter at prices between $13 and $16.Note: Northstar Asset Management, Northstar Realty Finance, and Colony Capital (CLNY) combined in a transaction that closed last month.Opus Bank Irvine (OPB): OPB was a ~2% 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. Q3 2015 saw a ~10% trimming at prices between $34.50 and $40 and that was followed with a ~22% reduction the following quarter at prices between $36 and $40. There was another one-third reduction in Q2 2016 at prices between $31.50 and $38. The disposal this quarter was at prices between $19.50 and $35.50. The stock currently trades at $21.05.New Stakes:Time Warner Inc. (TWX): TWX is a large (top five) 10.81% portfolio stake established this quarter at prices between $78.50 and $97 and the stock is now at $96.58.Note: In October last year, AT&T (T) agreed to acquire Time Warner in a cash-and-stock ($53.75 cash) deal worth $107.50 per share.Willis Towers Watson plc (WLTW): WLTW is a fairly large 5.31% position purchased this quarter at prices between $117 and $133. The stock is now at $124. For investors attempting to follow Abrams, WLTW is a good option to consider for further research.Quality Care Properties (QCP): QCP is a medium-size 2.54% portfolio stake established this quarter at a cost-basis of around $16 per share. The stock currently trades above that range at $18.02.Note: Abrams controls ~5% of QCP. The REIT is a spin-off from HCP Inc. (HCP) that started trading last October.AMERCO (UHAL): UHAL is a small 1.40% position purchased this quarter at prices between $314 and $374 and the stock is now at the top end of that range at $374.Syngenta AG (SYT): SYT is a very small 0.91% stake established this quarter at prices between $75.50 and $88 and the stock currently trades at $86.25.Stake Decreases:None.Stake Increases:Wells Fargo (WFC): WFC is a large 6.76% of the US long portfolio position established in Q4 2013 at prices between $41 and $45.50. The position saw a ~20% increase this quarter at prices between $43.75 and $57.50. The stock currently trades at $56.86.Och-Ziff Capital Management (OZM): OZM is a 2.30% portfolio stake established in Q2 2016 at prices between $3.30 and $4.35 and increased by ~11% last quarter at prices between $3.35 and $4.49. There was another ~11% increase this quarter at a cost-basis around $3.20. The stock is now at $3.61. For investors attempting to follow Abrams, OZM is a good option to consider for further research.Note: Abrams controls 10.43% of the business.Kept Steady:Western Union (WU): WU is Abrams’ largest stake at 17.23% of the US long 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 $19.74.Franklin Resources (BEN): BEN is a large (top-three) 11.54% 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 $40.88.Microsoft Corporation (MSFT): MSFT is the third-largest stake at 11.36% of the US long portfolio. It was established in Q1 2014 at prices between $36 and $40.50 and increased by ~45% in Q3 2014 at prices between $42.50 and $47.50. The stock currently trades well above those ranges at $64.Manitowoc Foodservice Inc. (MFS): The large (top-five) ~8% MFS stake was acquired as a result of the spin-off of Manitowoc Foodservice from Manitowoc Company in February 2016. Abrams held MTW shares for which they received MFS shares in the ratio 1:1. MFS started trading at ~$12 and currently goes for $19.25. It has returned over 50% in twelve months.Colony NorthStar Inc. (CLNS) previously Northstar Asset Management (NSAM): CLNS is a large ~6% 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. The stock currently trades at $14.50. Abrams controls ~5.8% of NSAM.Note: Northstar Asset Management, Northstar Realty Finance, and Colony Capital (CLNY) combined to form Colony NorthStar in a transaction that closed last month. NSAM shareholders received a special dividend of $1.16 per share following the close.Barnes & Noble Inc. (BKS): BKS is a fairly large 4.26% 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 four quarters thru Q1 2016 saw a combined ~150% increase at prices between $7.33 and $12.50. Overall, his cost-basis is at around $10 after adjusting for the Barnes & Noble Education spin-off transaction that closed in July 2015. The stock is now at $10.85.Barnes & Noble Education Inc. (BNED): BNED is a 3.69% 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. The stock currently trades at $10.22.VimpelCom Ltd. (VIP): VIP is a 2.65% of the US long portfolio position established in Q1 2015 at prices between $3.40 and $5.50 and increased by ~70% the following quarter at prices between $5 and $6.50. Q3 2015 saw a stake doubling at prices between $4 and $6 and that was followed with a ~75% increase the following quarter at prices between $3 and $4.30. The stock currently trades at $4.24.MoneyGram International Inc. (MGI): MGI is a 2.22% of the US long portfolio position established in Q4 2014 at prices between $8 and $13. It was increased by ~90% in Q1 2015 at prices between $8 and $9.50 and another ~17% the following quarter at prices between $7.50 and $10.50. The stock currently trades at $12.74. Abrams controls ~10% of the business.Note: Last month, Alibaba’s (BABA) Ant Financial agreed to acquire MGI for $13.25 per share cash.Keryx Pharmaceuticals (KERX): KERX is a small 1.23% of the portfolio position established in Q3 2015 at prices between $3.38 and $10.50. The stock currently trades at $5.45. Q4 2015 saw a ~10% increase while the following quarter saw another ~4% increase.Note: Seth Klarman (Baupost Group) has a huge ~43% ownership stake (assumes the dilution implied by convertible notes held) in KERX.Global Eagle Entertainment (ENT): ENT is a 1.19% of the US long 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. The stock currently trades below the low end of his purchase price ranges at $6.01. Abrams controls ~6.5% of the business.Clear Channel Outdoor Holdings (CCO): CCO is a very small ~0.62% 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 $4.90.The spreadsheet below highlights changes to Abrams’ US stock holdings in Q4 2016:"