Tracking David Abrams' Abrams Capital Management Portfolio - Q1 2022 Update

Jun. 01, 2022 8:45 PM ETABG, CHNG, CPNG, CTLP, CTLPP, CWH, ET, ET.PC, ET.PD, ET.PE, META, GOOG, GOOGL, KMI, LAD, NUVB, OI, TDG, TEVA, TEVJF, TPX, UHAL, UNH, USCB2 Comments8 Likes
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John Vincent
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Summary

  • David Abrams’ 13F portfolio value decreased this quarter from $4.56B to $4.28B. The number of positions remained steady at 18.
  • Abrams Capital Management increased Coupang and Cantaloupe while reducing AMERCO during the quarter.
  • The top three positions are Lithia Motors, Alphabet, and Change Healthcare. They add up to ~35% of the portfolio.

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SusanneB/E+ via Getty Images

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 13F Form filed on 5/13/2022. Please visit our Tracking David Abrams' Abrams Capital Management article for an idea on his investment philosophy and our last update for the fund's moves during Q4 2021.

This quarter, Abrams' 13F portfolio value decreased from $4.56B to $4.28B. The number of holdings remained steady at 18. 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 ~17% of the 13F portfolio.

Stake Decreases:

AMERCO (UHAL): UHAL is a 5.89% 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. Last quarter saw a ~20% reduction at prices between ~$646 and ~$759. The stock is now at ~$489. This quarter saw a minor ~6% trimming.

Stake Increases:

Coupang, Inc. (CPNG): The 5.61% CPNG stake was purchased in Q3 2021 at prices between ~$27 and ~$44.50. Last quarter saw a ~120% stake increase at prices between ~$25.50 and ~$30.50. That was followed with a ~40% stake increase this quarter at prices between ~$15.50 and ~$28.75. The stock is now well below those ranges at $12.90.

Cantaloupe, Inc. (CTLP) previously USA Technologies: The very small 0.49% CTLP position was purchased in Q1 2021 at prices between ~$9.45 and ~$12.45 and it is now well below that range at $5.12. This quarter saw a ~50% stake increase at prices between ~$6.50 and ~$8.75.

Kept Steady:

Lithia Motors (LAD): LAD is currently the largest position at ~17% 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. There have been minor increases since. The stock has tripled over the holding period and is now at ~$300.

Note: Their ownership stake in Lithia Motors is at ~9%.

Alphabet Inc. (GOOG): GOOG is a large (top three) 9.51% position purchased in Q2 2018 at prices between $1005 and $1175 and the stock is now at ~$2283. There was a ~20% stake increase in Q1 2020 at prices between $1057 and $1527.

Change Healthcare (CHNG): CHNG is a large 8.64% of the portfolio position established in Q1 2021 at prices between ~$18 and ~$24 and the stock currently trades at $23.91. The two quarters through Q3 2021 had seen a ~37% stake increase at prices between ~$21 and ~$24.

Note: Abrams Capital Management owns ~5.4% of Change Healthcare. UnitedHealth (UNH) is acquiring Change Healthcare in a $25.75 per share all-cash deal announced in January. DOJ sued to block the deal and the trial date is scheduled for August 1st.

TransDigm Group (TDG): The large 8.20% TDG position was purchased in Q1 2020 at prices between $246 and $658 and the stock currently trades at ~$600.

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. Q1 2020 also saw a ~11% stake increase at an average cost in the high 40s. The stock currently trades at ~$185.

Note: Their ownership stake in the business is ~9%.

Meta Platforms (FB) previously Facebook: FB is a large 6.25% portfolio position purchased in Q4 2018 at prices between $124 and $163 and the stock currently trades at ~$189. Q1 2020 saw a ~18% stake increase at prices between $146 and $223.

Willis Towers Watson plc (WTW): WLTW is a large 5.89% position purchased in Q1 2017 at prices between $117 and $133. Since then, the activity has been minor. The stock is now at ~$208.

Energy Transfer LP (ET): The 5.78% ET stake was established in Q1 2020 at prices between $4.55 and $13.75 and it is now at $11.94. There was a ~64% stake increase in Q3 2020 at prices between $5.40 and $7.15.

Kinder Morgan (KMI): KMI is a 5.51% 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 next quarter at prices between $12.73 and $18. The stock currently trades at $20.02.

Teva Pharmaceutical (TEVA): TEVA is a 5.27% 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 $9.33.

Camping World Holdings (CWH): CWH is a 3.33% 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 $26.41. They control ~12% of the business.

Tempur Sealy International (TPX), and USCB Financial Holdings (USCB): TPX is a 2.35% of the portfolio stake established in Q3 2021 at prices between ~$37.50 and ~$49.60 and the stock currently trades well below that range at $24.64. USCB is a minutely small 0.29% portfolio stake established in Q3 2021.

O-I Glass (OI) previously Owens-Illinois: OI is a ~2% 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 $16.90.

Nuvation Bio (NUVB): 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 $3.48, and the stake is at 0.47% of the portfolio.

The spreadsheet below highlights changes to Abrams' 13F stock holdings in Q1 2022:

David Abrams - Abrams Capital Management's Q1 2022 13F Report Q/Q Comparison

David Abrams - Abrams Capital Management's Q1 2022 13F Report Q/Q Comparison (John Vincent (author))

This article was written by

John Vincent profile picture
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Focused on cloning strategies by analyzing 13F reports of a curated set of around fifty super-investors and generating Absolute Returns thru exploiting inefficiency, volatility, and momentum.
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Disclosure: I/we have a beneficial long position in the shares of CPNG, FB, GOOGL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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