David Abrams Cuts Ties with TransDigm Group, Impacting Portfolio by -8.04%

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Insights from Abrams Capital Management's Latest 13F Filing

David Abrams (Trades, Portfolio), the seasoned investor behind Abrams Capital Management, has revealed his latest investment maneuvers in the third quarter of 2023. With a reputation built on a decade-long tenure with Seth Klarman (Trades, Portfolio) at Baupost and a successful track record since founding his own firm in 1999, Abrams is known for his value-oriented investment philosophy. His Boston-based firm prides itself on an "opportunistic" strategy, focusing on long-term investments in a select number of holdings that span various asset classes, including stocks, debt, and distressed securities.


Key Position Increases

During the third quarter, Abrams Capital Management bolstered its position in one particular stock:

  • Lithia Motors Inc (LAD, Financial) saw an addition of 40,120 shares, bringing the total to 2,391,188 shares. This move signifies a notable 1.71% increase in share count and a 0.39% impact on the current portfolio, with a total value of $706,189,550.

Summary of Sold Out Positions

Abrams made decisive exits from two holdings in the third quarter:

  • TransDigm Group Inc (TDG, Financial): The complete sale of 312,747 shares had a significant -8.04% impact on the portfolio.
  • Horizon Therapeutics PLC (HZNP, Financial): The liquidation of 890,993 shares resulted in a -2.64% portfolio impact.

Key Position Reductions

There were also reductions in existing positions:

  • Abrams trimmed his stake in Meta Platforms Inc (META, Financial) by 209,652 shares, marking an -18.42% decrease in shares and a -1.73% impact on the portfolio. The stock's average trading price was $301.3 during the quarter, with a 9.13% return over the past three months and a 173.55% year-to-date return.

Portfolio Overview

As of the third quarter of 2023, David Abrams (Trades, Portfolio)'s portfolio comprised 15 stocks. The top holdings were 23.33% in Lithia Motors Inc (LAD, Financial), 16.03% in Asbury Automotive Group Inc (ABG, Financial), 10.04% in Alphabet Inc (GOOGL, Financial), 9.21% in Meta Platforms Inc (META), and 8.27% in Energy Transfer LP (ET, Financial). The investments are primarily concentrated across seven industries: Consumer Cyclical, Communication Services, Energy, Industrials, Financial Services, Healthcare, and Technology.



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