David Abrams’ Abrams Capital Management Portfolio – Q2 2022 Update | Forex trading, free forex education

Magnifying glass on top of financial market info — SusanneB

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 8/12/2022. 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 Q1 2022.

This quarter, Abrams’ 13F portfolio value decreased from $4.28B to $3.72B. The number of holdings remained steady at 18. The top three stakes are at ~38% of the 13F portfolio while the top five holdings are at ~54%.

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 is now at ~$264.

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

Change Healthcare (CHNG): CHNG is a large (top-three) 10.52% of the portfolio position established during the first three quarters of 2021 at prices between ~$18 and ~$24. The stock currently trades at $24.76.

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. DOJ sued to block the deal and the trial began on August 1^st.

Asbury Automotive (ABG): ABG is a top-three 9.64% 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 ~$186.

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

Alphabet Inc. (GOOG): GOOG is a large (top five) 8.58% position purchased in Q2 2018 at prices between ~$50 and ~$59 and the stock is now at ~$123. There was a ~20% stake increase in Q1 2020 at prices between ~$53 and ~$76.

TransDigm Group (TDG): The large (top five) 7.78% TDG position was purchased in Q1 2020 at prices between $246 and $658 and the stock currently trades at ~$677.

Energy Transfer LP (ET): The 5.93% ET stake was established in Q1 2020 at prices between $4.55 and $13.75 and it is now at $11.58. There was a ~64% stake increase in Q3 2020 at prices between $5.40 and $7.15.

Willis Towers Watson plc (WTW): WTW is a large 5.67% position purchased in Q1 2017 at prices between $117 and $133. Since then, the activity has been minor. The stock is now at ~$220.

Kinder Morgan (KMI): KMI is a 5.62% 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 $18.57.

AMERCO (UHAL): UHAL is a 5.44% 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. Q4 2021 saw a ~20% reduction at prices between ~$646 and ~$759. Last quarter also saw a minor ~6% trimming. The stock is now at ~$578.

Meta Platforms (META), previously Facebook: META is a 5.22% 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. The stock currently trades at ~$181

Teva Pharmaceutical (TEVA): TEVA is a 4.86% 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 ~$11.20.

Coupang Inc. (CPNG): The 4.66% 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 last quarter at prices between ~$15.50 and ~$28.75. The stock is now at $18.10.

Camping World Holdings (CWH): CWH is a ~3% 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 $31.29. They control ~12% of the business.

O-I Glass (OI), previously Owens-Illinois: OI is a 2.61% 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 $14.30.

Tempur Sealy International (TPX), and USCB Financial Holdings (USCB): TPX is a ~2% 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 $28.93. USCB is a minutely small 0.27% portfolio stake established in Q3 2021.

Cantaloupe Inc. (CTLP), previously USA Technologies: The very small 0.47% CTLP position was purchased in Q1 2021 at prices between ~$9.45 and ~$12.45 and it is now well below that range at $6.83. Last quarter saw a ~50% stake increase at prices between ~$6.50 and ~$8.75.

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 $3.08, and the stake is at 0.33% of the portfolio.

The spreadsheet below highlights changes to Abrams’ 13F stock holdings in Q2 2022: