"Tracking David Abrams’ Abrams Capital Management Portfolio – Q2 2017 Update"
"David Abrams’ 13F portfolio decreased this quarter from $2.61B to $2.52B. The number of positions increased from 17 to 19.Abrams Capital Management added Altaba while dropping Microsoft.The top three positions are Western Union, Franklin Resources, and Time Warner and they add up to ~43% 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 08/11/2017. Please visit our  article for an idea on his investment philosophy and our  for the fund's moves during Q1 2017.This quarter, Abrams’ US long portfolio decreased ~4% from $2.61B to $2.52B. The number of holdings increased from 17 to 19. The top three stakes are at 42.68% of the 13F portfolio while the top five holdings are at 58.52%. The largest position by far is Western Union and it accounts for 16.36% of the US long portfolio.Stake Disposals:Microsoft Corporation (MSFT): MSFT was the third-largest stake at 12.57% of the US long portfolio as of last quarter. 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 elimination this quarter happened at prices between $65 and $72.50. The stock currently trades at $72.50. Abrams harvested long-term gains.New Stakes:Altaba (AABA) previously Yahoo, Cars.com (CARS), and Suburban Propane Partners (SPH): These are the three new positions this quarter. AABA is a top-five 8.48% portfolio stake established at prices between $46 and $56 and the stock currently trades above that range at $57.92. CARS is a 2.65% position. It is a spinoff from Tegna (TGNA) that started trading in May. The stock is at $24.72 and has not budged since the spinoff. SPH is a very small 0.37% portfolio stake established at prices between $22.75 and $27 and it is now at $24.08.Stake Decreases:Colony NorthStar Inc. (CLNS) previously Northstar Asset Management (NSAM): CLNS is a ~5.28% 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 $13.60. There was a ~14% selling this quarter.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.WelBilt Inc. (WBT) previously Manitowoc Foodservice Inc. (MFS): The 4.47% WBT 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 the renamed entity WelBilt goes for $19.54. Last quarter saw a one-third selling at prices between $18 and $20 and that was followed with another ~20% reduction this quarter at prices between $18.50 and $21. Abrams is harvesting gains.VEON Ltd (VEON) previously VimpelCom Ltd. (VIP): VEON is a 2.18% 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. There was a ~25% selling this quarter at prices between $3.68 and $4.34. The stock currently trades at $3.97.Barnes & Noble Inc. (BKS): BKS is a ~1% 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 position was sold down by around two-thirds this quarter at ~$8.50. The stock is now at $7.05.Note: Abrams still controls ~4.8% of BKS.Stake Increases:AMERCO (UHAL): UHAL is a ~4% position purchased in Q4 2016 at prices between $314 and $374 and increased by ~160% last quarter at prices between $367 and $391. There was a ~45% increase this quarter at prices between $341 and $393. The stock is now at $373.61.Global Eagle Entertainment (ENT): ENT is a ~1% 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. Last quarter saw a ~18% increase at prices between $2.92 and $6.79 and that was followed with another ~19% increase this quarter at prices between $2.75 and $3.55. The stock currently trades at $2.97.Note: Abrams controls 8.2% of the business.Kept Steady:Western Union (WU): WU is Abrams’ largest stake at 16.36% 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 $18.90. For investors attempting to follow Abrams, WU is a good option to consider for further research.Franklin Resources (BEN): BEN is a top-three 14.15% 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 just above those ranges at $42.75.Time Warner Inc. (TWX): TWX is a top-three 12.17% portfolio stake established in Q4 2016 at prices between $78.50 and $97. The stock is now at $102.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.Wells Fargo (WFC): WFC is a top-five 7.36% of the US long portfolio position established in Q4 2013 at prices between $41 and $45.50. The position saw a ~20% increase in Q4 2016 at prices between $43.75 and $57.50. The stock currently trades at $51.94.Willis Towers Watson plc (WLTW): WLTW is a fairly large 6.84% position purchased last quarter at prices between $117 and $133. The stock is now at $149.Barnes & Noble Education Inc. (BNED): BNED is a 3.22% 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 well below that range at $6.84.Quality Care Properties (QCP): QCP is a 3.64% portfolio stake established in Q4 2016 at prices between $12.50 and $17. The stock currently trades at $15.62. Last quarter saw a ~12% increase.Note: Abrams controls 5.3% of QCP. The REIT is a spin-off from HCP Inc. (HCP) that started trading last October.Och-Ziff Capital Management (OZM): OZM is a 2.26% 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. Last quarter also saw a ~17% increase at prices between $2.20 and $3.63. The stock is now at $2.93.Note: Abrams controls ~12% of the business.Keryx Pharmaceuticals (KERX): KERX is a small 1.64% of the portfolio position established in Q3 2015 at prices between $3.38 and $10.50. The stock currently trades at $6.42. Q4 2015 saw a ~10% increase and 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.Clear Channel Outdoor Holdings (CCO): CCO is a very small ~0.65% 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 $4.35.The spreadsheet below highlights changes to Abrams’ US stock holdings in Q2 2017:Regulatory filings thru 05/24/2017: Form 4 & 13G/As on 4/20 - BKS - 5.9M shares - 8.2% - 4.5M shares disposed at $8.575."