USCB - Tracking David Abrams' Abrams Capital Management Portfolio - Q2 2023 Update

2023-08-24 02:48:55 ET

Summary

• Abrams' 13F portfolio value increased from $3.16B to $3.48B this quarter.
• The number of holdings in the portfolio increased from 15 to 16.
• The top three stakes in the portfolio make up approximately 45% of the total.

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 8/14/2023. 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 Q1 2023.

This quarter, Abrams' 13F portfolio value increased from $3.16B to $3.48B. The number of holdings increased from 15 to 16. The top three stakes are at ~45% of the 13F portfolio while the top five holdings are at ~61%.

New Stakes:

Horizon Therapeutics (HZNP): HZNP is a merger-arbitrage stake established this quarter. Amgen ( AMGN ) is acquiring HZNP in a $116.50 cash deal announced last December. The stock currently trades at ~$106 and the stake is at 2.64% of the portfolio.

Stake Increases:

None.

Stake Decreases:

Meta Platforms ( META ) previously Facebook: META is a large (top three) 9.39% portfolio position purchased in Q4 2018 at prices between $124 and $163. Q1 2020 saw a ~18% stake increase at prices between $146 and $223. Q4 2022 saw another ~80% stake increase at prices between ~$89 and ~$140. There was a ~47% selling this quarter at prices between ~$208 and ~$289. The stock currently trades at ~$294.

TransDigm Group (TDG): The large (top five) ~8% TDG position was purchased in Q1 2020 at prices between $246 and $658 and the stock currently trades at ~$866. There was a roughly one-third reduction during Q4 2022 at prices between ~$510 and ~$640. That was followed by a ~15% trimming this quarter.

Alphabet Inc. (GOOG): GOOG is a large ~8% position purchased in Q2 2018 at prices between ~$50 and ~$59. There was a ~20% stake increase in Q1 2020 at prices between ~$53 and ~$76. Q4 2022 saw a similar reduction at prices between ~$83.50 and ~$105. The stock is now at ~$133. There was marginal trimming this quarter.

Coupang Inc. (CPNG): The 6.51% CPNG stake was purchased in Q3 2021 at prices between ~$27 and ~$44.50. Next quarter saw a ~120% stake increase at prices between ~$25.50 and ~$30.50. That was followed with a ~40% stake increase in Q1 2022 at prices between ~$15.50 and ~$28.75. The stock is now at $18.76. This quarter saw a minor ~3% trimming.

Kept Steady:

Lithia Motors (LAD): LAD is currently the largest position at ~21% 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. The stock is now at ~$305.

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

Asbury Automotive (ABG): ABG is a top-three ~15% 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 ~$222.

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

Energy Transfer LP (ET): The 6.51% ET stake was established in Q1 2020 at prices between $4.55 and $13.75. There was a ~64% stake increase in Q3 2020 at prices between $5.40 and $7.15. There was a ~20% selling during Q4 2022 at prices between ~$11 and ~$12.75. The stock is now at ~$13.

U-Haul Holding Company (UHAL): UHAL is a ~6% position purchased in Q4 2016 at prices between $31 and $37 and increased by ~160% the following quarter at prices between $37 and $39. There was a ~45% increase in Q2 2017 at prices between $34 and $39 and that was followed with a similar increase in H1 2018 at prices between $32 and $38. Q4 2021 saw a ~20% reduction at prices between ~$65 and ~$76. The stock is now at $56.51.

Note: the prices quoted above are adjusted for the 10-for-1 stock-split last November.

Willis Towers Watson plc (WTW): WTW is a 5.46% position purchased in Q1 2017 at prices between $117 and $133. Since then, the activity had been minor. Q4 2022 saw a ~25% selling at prices between ~$201 and ~$248. The stock is now at ~$203.

Camping World Holdings (CWH): CWH is a 4.42% 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 $25.59. They control ~12% of the business.

Tempur Sealy International (TPX): TPX is a 4.15% of the portfolio stake established in Q3 2021 at prices between ~$37.50 and ~$49.60 and the stock currently trades at $43.90.

Teva Pharmaceutical (TEVA): TEVA is a 1.72% 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. Q4 2022 saw a one-third reduction at prices between ~$8 and ~$9.50. That was followed with a ~50% selling last quarter at prices between ~$8.35 and ~$11.40. The stock currently trades at $9.74.

Cantaloupe Inc. ( CTLP ) previously USA Technologies: The small 1.64% CTLP position was purchased in Q1 2021 at prices between ~$9.45 and ~$12.45 and it is now at $7.82. Q1 2022 saw a ~50% stake increase at prices between ~$6.50 and ~$8.75. That was followed with a ~130% increase last quarter at prices between ~$4.35 and ~$6.20.

Nuvation Bio (NUVB): Panacea Acquisition merged with Nuvation Bio in a de-SPAC transaction that closed in February 2021. The stake was established during that quarter when it traded between ~$9 and ~$14.60. It currently trades at $1.67, and the stake is at 0.20% of the portfolio.

USCB Financial Holdings (USCB): USCB is a minutely small 0.19% portfolio position established in Q3 2021. The stake saw a ~23% selling during Q4 2022.

The spreadsheet below highlights changes to Abrams' 13F stock holdings in Q2 2023:

For further details see: